Austin Texas Bankruptcy Attorney

"When you need an attorney who really cares about you, call Ray Fisher. He really made the difference for us."

Information Forum

Chapter 7 bankruptcy:

Chapter 7 is normally the best form of bankruptcy. It looks better on your credit report. It is the easiest to recover from in terms of rebuilding your credit. Normally it allows you to lose the debts you want or need to lose, and it allows you to keep your assets. If you want to keep your house or car, then you simply continue to pay for them. The same applies to furniture loans. Chapter 7 will not get rid of student loans. It may get rid of some taxes. It depends on the type of taxes, whether you have filed returns, and how old they are. In order to qualify for Chapter 7 you have to pass a "means test". In plain English this means that your family income must be below a certain level for the size of your family and your location. If you do not qualify for Chapter 7, you may still get many benefits from filing a Chapter 13. This will stay on your credit report for 10 years. It normally takes 2 to 4 years to rebuild your credit after filing.

Chapter 13 bankruptcy

Chapter 13 bankruptcy is normally used for the following:

To stop a foreclosure
To stop a repossession or get a repossessed car or truck back
To force a payment plan on the IRS
To manage your debt if you need bankruptcy but have too much income to qualify for Chapter 7.

The way a chapter 13 works is that you make a payment plan for monthly payments through a trustee. The payment plan is based upon what you have to pay in order to get caught up on your mortgage, pay for your car or truck, and/or pay tax debts that could not be discharged in a chapter 7 bankruptcy. It will also be driven by the difference between your income and your reasonable and necessary living expenses. Normally the monthly payment amount can be roughly calculated by taking the amount of debt you have to pay expressed in terms of thousands of dollars and multiplying by 25. For example, if you have to pay a $10,000 mortgage arrearage and that was the only thing involved in your case, your payment plan would be around $250 per month ( 25 x 10). While you are in this kind of bankruptcy you also have to make your regular monthly mortgage payments. This stays on your credit for 10 years. You cannot start rebuilding your credit until it is over; once you are done you can expect a 2 to 4 year period to rebuild your credit.

Chapter 11 bankruptcy

This is a reorganization bankruptcy designed primarily for businesses. The big bankruptcies in the news such as the airline, automobile, or other large companies are normally chapter 11 cases. Individuals and small businesses can file chapter 11 cases too. Individuals who need to file are normally high income individuals with too much debt to qualify for a chapter 13; real estate investors with multiple houses that they want to keep are typical examples of this.

Chapter 12 bankruptcy

This is for farmers and ranchers. Normal consumers and other debtors do not qualify. I mention this type of case for two reasons. One reason is that a lot of people have heard about it, and they ask about it. The second reason is that, in one of the legal oddities of bankruptcy practice, we as lawyers are required to file a statement with the court saying we have advised our clients that they have a choice of filing under chapter 7, 11, 12, or 13 even though it is rare to find a client who could in fact file under chapter 12. So we are required to tell you that you can file under any one of these 4 chapters, and then we have to tell you that it is not true, you only have a choice of filing under chapters 7, 11, or 13.

Mediation

Mediation is a process of dispute resolution that is designed to settle disputes outside the courtroom. It can be used before a suit is filed or it can be used to settle cases that are in court. The mediator acts as an impartial facilitator to bring the parties together to find a mutually satisfying solution to the dispute.

Business organization and representation

When people form new businesses or want to bring a more formal structure to an existing business, they need experienced professional advice on how to do this. There are many choices available and many considerations that go into making that choice. At this stage a business needs both a lawyer and a CPA. If you are at this stage I can do the legal work you need. If you do not have a CPA I can refer you to a good one.

Wills

If you have children or if you own your home, you should have a will. We can prepare that for you. Most people want and need living wills along with their normal wills. We can guide you through the process of making decisions about how to make specific bequests as well as select executors, trustees, and guardians.

Other matters

With my many years of experience there are many other matters that I can handle as well. If you have a legal need I cannot meet, I almost certainly know someone who can; I will gladly refer you. My roots in the Austin legal community are very deep.

Ray Fisher

Call (512) 478-9810

Call today for a free consultation!