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The Information You Need to Help You Make an Informed Decision about…Bankruptcy Law

Located in Texas, Bailey & Galyen serves clients throughout Dallas/Ft. Worth, Houston, Grand Prairie, Arlington, Weatherford, Harlingen and Brownsville. We understand that in order to make informed decisions about bankruptcy issues, you need accurate information and sound advice. For bankruptcy matters, we provide you with the information you need and the advice and service you expect, so you can make informed decisions.

We are pleased to provide you with the following general information about bankruptcy law and some answers to some frequently asked questions as well as some issues you may be interested in knowing about if you, or a family member, have a bankruptcy matter.

We hope you find the information useful, and we invite you schedule a confidential consultation with Bailey & Galyen by calling 800-529-8008 or fill out our intake form and we will contact you to schedule a consultation.

What Is Bankruptcy Law?
Chapter 7 Bankruptcy
Chapter 11 Bankruptcy
Chapter 13 Bankruptcy
Why You Want a Bankruptcy Lawyer
How Bailey & Galyen Helps Consumers and Businesses in Bankruptcy
Business Bankruptcy
Individual Bankruptcy
Bankruptcy FAQ
Contact Bailey & Galyen

What Is Bankruptcy Law?

Bankruptcy is a complex set of laws that govern an individual's and business' ability to discharge their debts and obtain a fresh start. The bankruptcy laws had a major reform in 2005, known as the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 or BAPCPA.

Under the 2005 bankruptcy reform act, individuals wishing to file for bankruptcy must past a "means test," which precludes many individuals with higher incomes from filing for a Chapter 7 bankruptcy, and forces those individuals into a Chapter 13 bankruptcy where they will be forced to pay all or part of their unsecured debt.

Secured debt is a debt that has property of some sort attached to it, such as a car or home. If you default on your loan, the secured creditor can always take back the property that corresponds with your loan. Unsecured debt is debt that has no property attached to it. The most common types of unsecured debt are most credit card bills and medical or hospital bills.

Bankruptcy, whether a Chapter 7 liquidation bankruptcy, a Chapter 11 business reorganization bankruptcy or Chapter 13 individual reorganization bankruptcy, treats secured debt and unsecured debt differently.

One of the many benefits of filing bankruptcy is the "automatic stay." The automatic stay in bankruptcy requires creditors to immediate cease all collection efforts, including repossession and garnishments.

If you have an bankruptcy matter, including Chapter 7 or Chapter 13, and you would like to discuss your situation with an experienced Texas bankruptcy attorney, please schedule a confidential consultation with Bailey & Galyen by calling 800-529-8008 or fill out our intake form and we will contact you to schedule a consultation.

Chapter 7 Bankruptcy:

Chapter 7 bankruptcy is often called a "liquidation" bankruptcy. In simplistic terms, if you qualify for a Chapter 7 bankruptcy, you will take all your assets, keep the assets allowed by state or federal law (called "exemptions") and allow any remaining assets to be liquidated and the proceeds used to pay your creditors.

After a Chapter 7 bankruptcy, your debts are considered paid, and you are allowed to proceed with a fresh start. Please note that a Chapter 7 bankruptcy does not get rid of liens against your property, nor does it allow you to keep property that is secured by a loan, with agreeing to assume or continue with your loan obligation. For example, you cannot keep your house and discharge the mortgage. However, you may be able to elect to walk away from your house and discharge any outstanding balance on your home (for homes that worth less than what you owe).

Chapter 7 bankruptcy can be utilized by individuals (consumers) and businesses.

You should consult an experienced bankruptcy attorney to understand your exemptions and how they work, as well as whether you qualify for a Chapter 7 bankruptcy.

If you have a bankruptcy matter, including a possible Chapter 7 bankruptcy, that you would like to discuss with an experienced Texas bankruptcy attorney, please schedule a confidential consultation with Bailey & Galyen by calling 800-529-8008 or fill out our intake form and we will contact you to schedule a consultation.

Chapter 11 Bankruptcy:

Chapter 11 bankruptcy is a business bankruptcy where a business can seek the court and bankruptcy laws to allow it an opportunity to reorganize its debts and continue as a profitable business entity.

In most cases, when a business seeks Chapter 11 bankruptcy, the existing management remains in control of the business. This known a "debtor in possession" and is subject to the oversight of the court.

In rare circumstances where, a bankruptcy trustee (a person who represents the creditors) can demonstrate that it would be in the best interest of all creditors to force the company into liquidation (Chapter 7 bankruptcy), the court may allow the trustee to convert the Chapter 11 bankruptcy to a Chapter 7 bankruptcy and take over management of the company assets.

A Chapter 11 bankruptcy can be a powerful tool for businesses. It allows business to negotiate favorable loan terms and financing by allowing new creditors a priority on new business earnings. In addition, a Chapter 11 bankruptcy can permit a business to cancel or renegotiate existing contracts.

If you have a bankruptcy matter, including a possible Chapter 11 bankruptcy, that you would like to discuss with an experienced Texas bankruptcy attorney, please schedule a confidential consultation with Bailey & Galyen by calling 80-529-8008 or fill out our intake form and we will contact you to schedule a consultation.

Chapter 13 Bankruptcy:

Chapter 13 bankruptcy is similar to a Chapter 11 bankruptcy, but designed for consumers and small businesses (such as sole proprietorships).

Most individuals who earn an income higher than the national average will be forced into a Chapter 13 bankruptcy (rather than a Chapter 7 bankruptcy) because of the "means test" imposed by the 2005 bankruptcy reform. However, even without being forced into a Chapter 13 bankruptcy, there are many individuals (consumers) who would prefer a Chapter 13 bankruptcy to a Chapter 7 because of their assets, and their particular situation.

For example, a debtor who is behind on mortgage payments or car payments, and does not have much other debts, may elect to file a Chapter 13 bankruptcy to give them more time to get caught up on making missed payments. This type of bankruptcy can be especially helpful if a family member's income was temporarily dropped or suspended.

In addition, a person with substantial assets and not very high debts may want to elect to file for a Chapter 13 bankruptcy in order to not risk losing any of their assets.

Like other types of bankruptcies, a Chapter 13 bankruptcy triggers an automatic stay that stops collection efforts, including home foreclosures, car repossessions and garnishments, such as student loan garnishments, IRS garnishments and other creditor garnishments.

A Chapter 13 (or any other type of bankruptcy) may not discharge certain debts, but it can buy you time to increase your income and to rid yourself of other debt.

If you have a bankruptcy matter, including a possible Chapter 13 bankruptcy, that you would like to discuss with an experienced Texas bankruptcy attorney, please schedule a confidential consultation with Bailey & Galyen by calling 800-529-8008 or fill out our intake form and we will contact you to schedule a consultation.

Why You Want a Bankruptcy Lawyer:

Bankruptcy laws are complex, the laws are always changing and formalities are strictly observed. A mistake could prevent you from having your debts discharged and other benefits that you could receive under the bankruptcy code.

An experienced bankruptcy lawyer will not only guide you through the bankruptcy process, but will advise you on whether bankruptcy is your best option and which type of bankruptcy you should file. In some cases, especially where another family member is involved or where you have a business interest or own a business, experienced counsel can be the difference between obtaining the full benefits of the bankruptcy laws and watching your business fail and your personal goals not met.

Receiving advice and information from an experienced bankruptcy lawyer will allow you to have the information you need to make an informed decision.

An experienced immigration lawyer will make sure you understand not only what needs to be done, but when it needs to be done. In addition, an experienced bankruptcy lawyer can make sure you understand exactly what is coming and are not surprised by the process or by the bankruptcy trustee (the person who represents the creditor in a bankruptcy).

Finally, you immigration lawyer can help you prepare for any hearings or other requirements, as well as assist you in compiling the proper documentation and meeting the requirements imposed by the bankruptcy code, including the requirements imposed under the 2005 bankruptcy reform.

If you would like to retain an experienced Texas lawyer to discuss your bankruptcy matter, please schedule a confidential consultation with Bailey & Galyen by calling 800-529-8008 or fill out our intake form and we will contact you to schedule a consultation.

How Bailey & Galyen Helps Consumers and Businesses in Bankruptcy:

Located throughout Texas, Bailey & Galyen represents businesses and consumers throughout the state, including Dallas/Ft. Worth, Houston, Grand Prairie, Arlington, Weatherford, Harlingen and Brownsville. By providing you with quality representation, experienced advice and the highest level of personal service, Bailey & Galyen can give you leverage when dealing with creditors.

You can rely on the accuracy of the information we provide and the knowledge and experience behind the advice we offer. We are dedicated to achieving your bankruptcy and financial goals and committed to you as a client. We put ourselves in your shoes and treat you with the respect and compassion we would demand if we were the client.

We understand how to deal with creditors. When you retain Bailey & Galyen, you are telling your creditors that you are serious about future, and more importantly, that you are taking the necessary steps to ensure that you are taking control of your debts.

We understand that the laws and process are constantly changing, and that the changes can be confusing. We dedicate ourselves to keeping current on the law, and often know about changes before they actually become law. We use this information to your advantage.

To discuss your matter with an experienced Texas bankruptcy lawyer, please schedule a confidential consultation with Bailey & Galyen by calling 800-529-8008 or fill out our intake form and we will contact you to schedule a consultation.

Business Bankruptcy

Businesses file for bankruptcy for many different reasons. A business may elect to either liquidate or reorganize under the bankruptcy code. In some situations, it may be better to liquidate your business that to reorganize it. For example, if your business requires little investment, has few assets and is really just an extension of your skills, you may be better of liquidating and starting over with a new business.

However, if your business has significant assets, a substantial workforce, and the potential to make a profit, you can use the bankruptcy laws to help you stop creditor collection actions, reject leases or contracts that are not advantageous, and buy time for your business to get on track.

Businesses also use the bankruptcy laws to buy time to sell their business or to realize more of a profit from asset sales than the fire-sale prices they would realize in a forced sale.

To discuss your matter with an experienced Texas business bankruptcy lawyer, please schedule a confidential consultation with Bailey & Galyen by calling 800-529-8008 or fill out our intake form and we will contact you to schedule a consultation.

Consumer Bankruptcy

Consumer bankruptcy typically involves either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy. A "means test" is employed to determine if a consumer debtor can even qualify for a Chapter 7 bankruptcy.

A Chapter 7 bankruptcy is basically a personal liquidation and takes much less time than a Chapter 13 bankruptcy. A Chapter 13 bankruptcy is basically a personal reorganization and allows payment of all debts during a 3-5 year period.

Both Chapter 7 bankruptcy and Chapter 13 bankruptcy trigger an automatic stay that stops all collection efforts by the creditors, even foreclosure efforts, repossession efforts and garnishment proceedings.

More importantly, a personal or consumer bankruptcy will afford you an opportunity to discharge current debt and permit you a fresh start. Basically, it gives you a second chance.

To discuss your matter with an experienced Texas consumer bankruptcy lawyer, please schedule a confidential consultation with Bailey & Galyen by calling 800-529-8008 or fill out our intake form and we will contact you to schedule a consultation.

Frequently Asked Questions about Bankruptcy:

Question: Do I need a lawyer to file bankruptcy?

Answer: No. You do not need bankruptcy lawyer to file for bankruptcy protection and go through the bankruptcy process. However, due to the complexities and the consequences of making a mistake on your bankruptcy petition or throughout the course of your bankruptcy, as well as understanding all your options, it would be advisable to retain counsel from an experienced bankruptcy attorney.

Question: Are student loans dischargeable under the bankruptcy code?

Answer: No, except under very difficult circumstances. You can have your student loans discharged under bankruptcy if you can demonstrate that if forced to repay the student loan you will be unable to maintain a minimal standard of living for yourself and your dependents, that you will remain virtually insolvent for a significant period of time, and that you have made a good faith effort to repay the student loan prior to filing bankruptcy.

Question: Can I stop my home form being foreclosed upon by filing bankruptcy??

Answer: You can delay foreclosure of your home by filing bankruptcy. This delay can be used to attempt to workout something with the mortgage company, seek financing from other sources, or to sell your home. If you elect to file a Chapter 13 bankruptcy, and you can make up your mortgage payments over the next 3-5 years, you may be able to stop the foreclosure and keep your home. You should consult with an experienced bankruptcy lawyer to determine your options and what is best for you given your situation.

Contact an Experienced Texas Bankruptcy Lawyer

Our goal is to provide you with the information you need to make informed decisions. We hope the information outlined above will give you a general understanding of bankruptcy law and some of the factors involved with the bankruptcy process.

To schedule a confidential consultation to answer your questions or to discuss your bankruptcy matter with a knowledgeable lawyer, please call 800-529-8008 or fill out our intake form and we will contact you to schedule a consultation.

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