With the recent collapse of the housing market, a stock market turnaround that took stock prices back over a decade, true effective national unemployment in double digits, and the overall uncertainty about our economic futures there is no doubt why San Antonio bankruptcy filings are at an all time high. As a San Antonio bankruptcy attorney I deal with clients on a daily basis that are good hard working people that have fallen on hard times and are looking for fresh financial start that they are afforded under our Constitution.
Several years ago there was a certain negative context that was associated with the need to seek bankruptcy help, but I feel comfortable in saying that those times have passed. The old stigma of a young person who racked up a bunch of credit card debt while having minimal or no income then filing bankruptcy is just not true anymore.
Most of the clients that walk in my San Antonio bankruptcy law firm are good hard working people. When they took out their debts, they had every intention of repaying each penny with interest. However, for one reason or anther when the economy came crashing down they became stuck between a rock and a hard place. Most potential clients have tried to work with their creditors to develop a repayment plan, but have found their creditors to be unwilling to be reasonable or just plain unhelpful.
There are two main types of bankruptcy that individuals file for protection under. They are Chapter 7 and Chapter 13 bankruptcy. A Chapter 7 bankruptcy is often called a liquidation bankruptcy because the trustee will seize all of your non-exempt assets, and then liquidate them in order to pay off your creditors on a priority status.
A Chapter 13 bankruptcy is similar to a Chapter 11 bankruptcy that corporations often seek reorganization under. This is why a Chapter 13 is often called either a reorganization bankruptcy or a repayment bankruptcy. With this type of filing, your San Antonio bankruptcy attorney will help you develop a repayment plan that will pay off your creditors over the course of three to five years. Most of your unsecured creditors will only be paid a fraction of the debt owed, if any at all during a Chapter 13 bankruptcy.
Deciding which type of bankruptcy is right for you can be extremely complex, or quite simple. It all depends on what it called a means test. This is a mathematical formula that will determine if you qualify for a Chapter 7. Should you fail the means test, you still may be eligible to file for a Chapter 7, but much more work will be involved. Depending on the client and what their goals are, they might want to file a Chapter 13 over a Chapter 7. It is extremely important to communicate your desired outcome with your San Antonio bankruptcy attorney.
Our law firm offers a free initial consultation. We understand that you will have a lot of uncertainties about what is right for you and what the next step should be. This is a wonderful time to get to know us, how we operate, and determine weather or not I am the bankruptcy lawyer that is right for you.