Houston Bankruptcy Information
What is Bankruptcy?
Bankruptcy is the filing of a petition with the bankruptcy court to obtain protection
from collection efforts of your creditors. It is normally triggered when an individual's debts exceed current income and property. At the
end of bankruptcy, some or all of the individual's debts will be canceled.
Bankruptcy involves a Federal court proceeding in which the individual's
obligations are balanced against his or her creditor's
rights. The individual's objective is to reduce or eliminate the
debt completely ("wipe the slate clean"). The creditor's objective,
on the other hand, is to collect as much of the debt as possible. The
bankruptcy proceeding is the forum in which the debtor and the creditor
resolve differences.
Fast Facts about Bankruptcy
There are different types of bankruptcy, which are detailed in our FAQ's
section of this Web site. Briefly, consumers can either immediately
discharge all of their debts (Chapter 7)
or slowly pay a percentage of them off over time as they continue to
work and earn income. (Chapter 13) Businesses
can enter what's called "bankruptcy protection" (Chapter
11) while they reorganize themselves in a way that's acceptable
both to their creditors and to the United States Bankruptcy Court. Bankruptcy
law is federal in nature, and therefore is under the jurisdiction of
federal law and courts. Every
bankruptcy involves a process by which debts are eliminated. Each bankruptcy
takes time and effort, and you must organize your debts concisely in
order to have a successful bankruptcy filing. Any licensed attorney
specializing in the field of bankruptcy is more than qualified to guide
you through this process. Please see our attorney directory to locate
an bankruptcy attorney near you!
