Chapter 7 or Chapter 13 Bankruptcy

Many people have difficulty paying off their debt. Most of my clients have done everything possible, including making large personal sacrifices, to pay off what has become an insurmountable debt load. Eventually though, it can become impossible to pay off large debt while still having money left over even for necessities. If we continue in debt, then we are not able to save for future emergencies, or expenses like college for the kids or even our own retirement. This is where the Bankruptcy Code and Texas law can help. Courts consider bankruptcy to be the responsible thing to do if we are no longer able to pay our bills. Otherwise, we would continue to acquire debt that we are unable to pay. So when we file bankruptcy in Allen or Plano Texas, we are “drawing a line in the sand” and agreeing that we will be responsible for all future debt, even if we cannot pay off past debt.

The Law Offices of Michael R. Sices, PC will carefully guide clients through filing a Chapter 7 or 13 bankruptcy in Allen, Plano or McKinney, Texas. Learn more about the details of bankruptcy and other consumer law protections, then consult with our firm to assist you in developing a plan that can help you in your particular situation.

Debt Repayment Plans and Debt Settlement

By far, the best way to create a repayment plan or settle debt for pennies on the dollar is with a bankruptcy lawyer. Debt consolidation or settlement firms cannot negotiate with the full power of the federal bankruptcy laws behind them. As such, debt settlement or consolidation firms are “all hat and no cowboy.” Many individuals are surprised to learn that debt settlements can sometimes hurt your credit rating more than a bankruptcy. You should first learn more about workouts and debt settlement and then consult withAllen and Plano Bankruptcy Lawyer, Michael R. Sices to discuss your options.

Foreclosure Help! (how to keep your home in tough times):

If your home is listed for Foreclosure:

or if you are worried about foreclosure, a Chapter 13 court protected repayment plan will stop the foreclosure immediately. There are lots of methods that people try to stop their foreclosure– loan modification, forbearance, deed in lieu of foreclosure, or short sale. Those options rarely work in the long run. A Chapter 13 Plan is often the most effective way to allow you to keep your home and stop the foreclosure right-away.

In Texas, Mortgage Servicers are allowed to foreclosure on your property without a court order within as little as 50 days.

When it comes to protecting you and your family from foreclosure, time is of the essence! If you ignore your situation, you will likely lose your home. I can help you understand the best way to keep your home while you struggle to pay your bills. Learn more about foreclosure defense here. Then contact my office to discuss your options with an attorney to find out if a chapter 13 bankruptcy makes sense in your particular situation.

If you are dealing with the foreclosure of your home, please contact my office immediately via email or at (972) 914-8372 for a free, no obligation consultation.

Stop Vehicle Repossessions; or Get your Car Back

Even if your car has already been repossessed, you may be able to get it back after filing a Chapter 13 Bankruptcy case. When you file a Chapter 13 Bankruptcy, it immediately invokes a very powerful Federal protection called “the Automatic Stay” pursuant to §362(a) of Title 11. A car lender who has repossessed your vehicle and who has not already legally sold it to a 3rd party with 10 days notice, is required to immediately return your vehicle pending confirmation of your chapter 13 plan.

If you are dealing with the possible repo of your car or truck; or even if your vehicle has already been repossessed, please contact my office immediately via email or at (972) 914-8372.

Deuteronomy 15:1-2: ‘At the end of every seven years you shall grant a release. And this is the manner of the release: every creditor shall release what he has lent to his neighbor. He shall not exact it of his neighbor, his brother, because the Lord’s release has been proclaimed.’

Common Bankruptcy Myths

Myth: People who file bankruptcy lose all their property (or home or car)

Fact: Most debtors do not lose any property. The vast majority of all cases are administered as “No Asset” cases, meaning there are no assets that are both non-exempt and worth enough for the estate to pay the costs of administration.

Myth: People who file bankruptcy never get credit again

Fact: It will take about two years to rebuild credit to the point that you won’t be turned down for a major credit card or loan. Of course, I hope you will choose to stay off that merry-go-round. After approximately four years, you may be able to qualify for a mortgage.

Myth: Only deadbeats file bankruptcy

Fact: I can tell you that my clients are almost always good and upstanding people who simply need financial assistance through a particularly rough patch. Bankruptcy is your right under the law, and is also provided for in the Bible. You should not feel guilty about addressing your problems by seeking a fresh start.

Myth: Banks have lost a lot of money due to bankruptcy filings

Fact: Bank profits from credit cards are at an all time high, over $30 Billion a year. If the banks were truly suffering from bankruptcy losses they would start exercising prudence in lending, instead of carpet bombing American homes with credit card offers every day.

Myth: I only have to list the debt I want to get rid of on my bankruptcy

Fact: All debt must be listed, but you can reaffirm debt such as your home, car(s) and other secured loans. You can also simply make voluntary payments to family or medical providers if you wish.

Myth: It is ok to charge up credit cards just before filing bankruptcy

Fact: Debt acquired after you realize you cannot repay may have to be paid back even after filing bankruptcy.

Myth: If you are married and file bankruptcy, your spouse must file too

Fact: Many married debtors file alone and the spouse is not affected. Unless both are on the debt, a single filing makes more sense.

Myth: My employer will find out and fire me, or my potential future employer will not hire me because I filed for bankruptcy

Fact: The Bankruptcy Code provides that private employers and government agencies may not discriminate based solely on a prior bankruptcy filing.

Myth: I have to be broke or behind on my bills to file bankruptcy

Fact: You do not have to be behind on your bills to file; waiting until the last minute is never a good idea.

MORE MYTHS (every one of these statements is FALSE):
Bankruptcy is not affordable.
I will lose my home.
My credit is destroyed forever.
I will never get a home, an apartment or car.
You can’t go bankrupt anymore since the new law.
The new law says you have to pay everything back.
It will be in the newspaper.
I hear “you can’t go bankruptcy on credit cards any more”.
After you take a credit counseling course, you must wait 6 months before you can file a bankruptcy.
If I file for bankruptcy I’m a failure.
There’s a secret way to make your creditors accept a fraction of the debt.
A debt settlement firm can help me pay off all of my debts at a deep discount in 3 years or less and now I won’t have to file for bankruptcy.
My friend told me that as long as I am going bankrupt I might as well max out my credit cards and use up what is left.
I should “leave one card out” of the bankruptcy.
But my credit score will go down!”
I’ll never get credit again, or; I won’t be able to get credit for 7 years
Bankruptcy does not apply to certain creditors like Bank of America.

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