Any bankruptcy proceeding in Texas will end up being a fruitless endeavor if it does not yield the desired result to the debtor and help him or her to get back on stronger financial ground. For a fresh financial start to be successful, the plan must work. With a Chapter 13 bankruptcy, it is vital to understand something that is elementary: how to make the plan work.
Legal help can stop the repossession of certain property
Texans who are having financial problems are often concerned about the prospect of creditors repossessing certain properties. Various items can be taken as part of the collection process and those who are thinking that they have nowhere to turn should be aware of how a bankruptcy proceeding can help them. For example, a car could be vital to a person's daily life and there is a concern that it could be repossessed. Filing for bankruptcy can put a stop to this.
What is conversion or dismissal in a Chapter 11 case?
When a Texan is moving forward with a Chapter 11 filing, there are certain aspects that must be considered as the case is moving forward. One is the conversion or dismissal. This grants the debtor the right to convert a Chapter 11 to Chapter 7. This is a one-time right unless the following is in effect: the debtor is not a debtor in possession; the case began as an involuntary Chapter 11; or the case was previously converted to Chapter 11 in a way that was other than at the request of the debtor. With Chapter 11, the debtor cannot have the case dismissed on request as an absolute right.
Does the Chapter 7 discharge clear me from my debts?
Texans whose debts have reached the point where they decide to file for Chapter 7 bankruptcy often have a hard time believing that their debts can be made to go away through simply filing for bankruptcy and following through with the process. Those who are asking if the Chapter 7 discharge really clears their debts should know how the discharge process works and what debts are dischargeable. Individual debtors who have a successful Chapter 7 bankruptcy will be freed from liability for most debts. Subsequently, creditors can no longer act to collect on the debt.
Chapter 11 bankruptcy might be better for struggling businesses
A small business that is experiencing problems in Texas and across the United States will often consider filing for bankruptcy. One question that comes to forefront during this time is whether filing for Chapter 11 bankruptcy is better than other alternatives like Chapter 7. The reality is that for businesses that would like to continue operating, Chapter 11 is generally viewed as the better option. In fact, many believe that Chapter 7 for businesses is simply an admission that the end is near and the choice of Chapter 7 is the final concession.
