The Rasansky Law Firm represents individuals and
corporations in bankruptcy proceedings. The Rasansky Law Firm can
help with Credit Card Debts, Credit Harassment, Home Foreclosures,
Repossessions, Liquidation, IRS Collections, Lawsuits, and Judgments.
A person or company filing for bankruptcy in general is required
to list all assets and those individuals or companies that they
owe money to as well. Not listing all assets is a bankruptcy crime.
There are several different types of bankruptcy filings which include
Chapter 7, Chapter 13, and Chapter 11.
Chapter 7 is referred to as a liquidation proceeding
because the trustee is entitled to seize and sell all non-exempt assets
owned by the individual and distribute the proceeds from these sales
to creditors.
In general, in order to qualify for Chapter 7
the individual debtor’s income can not exceed their expenses
to a degree that they would be able to repay creditors some repayment
over a 3 year period.
Therefore, if the debtor’s income does
exceed their expenses in an amount in which they will be able to
repay creditors in some way over 3 years, the court may move to
dismiss the case or convert it to Chapter 13.
Chapter 13 eligibility is dependant on the debtor
having an income and debts below a certain amount and applies when
the income of the debtor exceeds their monthly personal overhead expenses
to some extent such that the individual is able to pay his secured
debt and priority debt in full and some portion of the unsecured debt
can be repaid.
In general, filing Chapter 13 is a better alternative
than filing for Chapter 7 because some debts can be discharged
in Chapter 13 whereas in Chapter 7 they can not. Debts that can
not be discharged in a Chapter 13 are family support fines, student
loans, and drunk driving judgments.
In a Chapter 13 filing, debts can be reduced to
the fair market value of the asset if the current balance on the
asset is substantially more than its worth.
A Chapter 11 bankruptcy filing allows a business
to reorganize without pressure from creditors. Chapter 11 allows
the business to continue normal business activities while reorganizing
its finances so that it may pay its employees and reduce debt to
its creditors.
Chapter 11 can last up to 6 years and in some cases the business
will elect to sell its primary assets and liquidate its business.
If this occurs the business will need to obtain court approval
to sell its assets.
Contact The Rasansky Law Firm if you have any question regarding
bankruptcy and how we can assist you or your company.
Bankruptcy Frequently Asked Questions
If I file for bankruptcy, can I still have a bank account?
Anyone who files for bankruptcy is entitled to have a bank account
prior to, during and after the filing of the Bankruptcy.
Do I need to go to court after I file
for bankruptcy?
Anyone who files for bankruptcy has to attend a 341 creditors
meeting which takes place approximately 4-6 weeks after the bankruptcy
case is filed.
I have some property and a boat that is
not exempt. Can I give this property to my friend or relative
to hold it for me and then file bankruptcy?
All transfers of property within 1 year of the commencement
of your bankruptcy case must be disclosed.
If I file bankruptcy, does my wife have to file bankruptcy
with me?
No. A person filing for bankruptcy who is married can file for
bankruptcy protection in their name only without the spouse. Community
property owned by both spouses, however, must be listed when the
bankruptcy case is filed.
When I file for bankruptcy, will I lose my house and car?
In most cases your house and car payments will be classified as
secured debts and will not be taken away from you.
If I fail to list one of my creditors when filing for bankruptcy,
what happens?
Anytime a creditor is not listed, the opportunity for that debt
to be discharged will not be present unless you can prove that
creditor had knowledge you filed for bankruptcy. If you discover
you forget to list a creditor, you can file a motion to re-open
your bankruptcy and have them listed.
What about student loans, are they dischargeable in Bankruptcy?
In general, student loans are not dischargeable in bankruptcy.
There are exceptions such as undue hardship.
I have just moved to Texas can I file for Bankruptcy?
In most cases probably not, if you have lived in the district in
which you are filing for less than 180 days, the Trustee could
object to your discharge.
