Introduction to Bankruptcy
To many, bankruptcy may seem like an unknown and potentially frightening prospect. However, bankruptcy can actually be a reliable way to clear yourself of debt and rebuild your good financial standing. There are several different types of bankruptcy, most of which fall within the categories of liquidation or re-organization. Each type is capable of clearing away debt in different ways and each is geared towards a different set of circumstances. The good news is, while bankruptcy may not seem ideal, it can actually be a great tool that can be used as a way to re-establish your financial stability.
If you are thinking of filing for bankruptcy, it may help to have a knowledgeable bankruptcy lawyer to provide guidance and representation during this time. The Houston bankruptcy attorneys of Russell Van Beustring P.C., are highly qualified attorneys dedicated to helping clients navigate the complex laws surrounding bankruptcy. To speak with an attorney today, contact us at 713-973-6650.
Types of Bankruptcy
There are two general types of bankruptcy, liquidation and reorganization:
The most common liquidation bankruptcy is Chapter 7 bankruptcy. Under this type of bankruptcy, certain property belonging to the debtor is taken and sold (liquidated) in order to repay part of their debt. However, not all property is subject to liquidation. Several items are exempt under the law unless they are part of a secured debt.
Chapter 13 bankruptcy is the most common type of reorganization bankruptcy. Other types of reorganization bankruptcy include Chapter 11 and Chapter 12. Under Chapter 13 bankruptcy, a person’s property is not liquidated, but their income is used to repay debts over a period of three to five years, generally. To be eligible, a person’s debt must be under a certain amount and they must have income that can be used to repay debts.
The Houston bankruptcy lawyers of Russell Van Beustring P.C., have the experience and legal knowledge needed to help individuals wade through the process of bankruptcy successfully. If you are dealing with the possibility of bankruptcy, don’t hesitate to contact one of our skilled attorneys today at 713-973-6650.