Frequently Asked Questions About Bankruptcy

• Have you considered bankruptcy but wondered if it’s the right choice for you? Amber L Willingham, Attorney At Law is here to help.
• I understand that bankruptcy is an extremely complex area of the law and that the process can be complicated and stressful.  I strive to educate my clients, explain their options, and help them get the fresh start they deserve. It all begins by learning about your rights and options. 

• The decision to file for bankruptcy should be made on a case-by-case basis with careful analysis of your situation and the advice of a knowledgeable bankruptcy attorney. It is not a decision that anyone should rush into although there are certain circumstances that may require expedition of the filing such as a foreclosure or repossession. Although the benefits of bankruptcy can be substantial for many people, there are drawbacks to filing in certain situations. Attorney Amber L Willingham can assess your current situation and help you determine if bankruptcy is right for you.

• Again, this is determined on a case-by-case basis after a careful analysis of the circumstances of your situation. Generally speaking, however, Chapter 7 bankruptcy is ideal for individuals with limited income who cannot pay back all or some of their debts. There is a test to determine whether you qualify for a Chapter 7 - The Means Test. 
•  Chapter 13 bankruptcy is better suited for individuals whose income exceeds the limit for Chapter 7 and who need more assistance reorganizing their debt to make it more manageable. Attorney Amber L Willingham will be happy to discuss your case with you and help you determine which type of bankruptcy is the right choice for your particular situation.

• In most circumstances you can file a bankruptcy again, unless the court dismissed your previous bankruptcy ‘with prejudice’ barring you from filing again for six months.
• You may also be barred from filing again if your previous case was dismissed because you failed to follow the court’s orders or if you asked the court to dismiss your case after a creditor moved for relief from the automatic stay.
• There are also restrictions on how frequently you can obtain a discharge of your debts in bankruptcy.

As a debtor, you are protected from creditor harassment under the Texas’ Fair Debt Collection Practices Act.

This means creditors are not allowed to:

• Threaten you with violence or threaten to arrest you
• Use obscene or profane language
• Make harassing phone calls
• Invade your privacy
• Misrepresent themselves
• Attempt to collect more than the amount originally agreed upon

If you are being harassed by debt collectors and creditors, seek help from Attorney Amber L Willingham. I fight hard to protect the rights of debtors throughout the Southern District of Texas.

• Though bankruptcy is a useful tool to reduce or restructure debt, it will not get rid of all your debt. Certain debts – such as alimony, child support, and most business tax debt – cannot be discharged through bankruptcy.

• Bankruptcy is the ideal tool for someone who has fallen behind on their car payments or their mortgage payments.  If this is your situation, I would recommend a Chapter 13 Bankruptcy.  Once filed, you and your assets, including your home and your vehicles, are protected by the Automatic Stay.  This means that your creditors cannot foreclose or repossess your assets while the automatic stay is in place.  Your delinquent payments would be paid through the Chapter 13 Plan over the course of 5 years.  So, bottom line is in most circumstances, you can keep your home and you can keep your car! Call Attorney Amber L Willingham to discuss your options.

The IRS is notorious for denying requests to reduce tax debt through an offer in compromise or some other tactic. However, there are ways to potentially reduce your debt or at least make it more manageable.

You could request:

• An installment agreement
• A partial payment installment agreement
• An offer in compromise
• Currently Not Collectible status

Some income tax debt is dischargeable.  There are many factors that go into this determination, so call Attorney Amber L Willingham and we can analyze whether or not your income tax debt could be discharged in a bankruptcy.