Bankruptcy Legal Services in Dallas
Providing Experienced Legal Resources Throughout Texas
The institution of bankruptcy has been unfairly stigmatized when it should be celebrated. Bankruptcy is a powerful tool that helps many regain control of their finances and conquer overwhelming levels of debt. The proper deployment of bankruptcy can help avoid many of the worst consequences of mounting debt and can put you on the path toward a more sustainable financial future.
At The Law Office of Truman E. Coe, P.C., our bankruptcy legal services in Dallas are tailored to help our clients long-term. We aim to use bankruptcy and other legal solutions to best position you for financial prosperity and sustainability. Our team works to reduce your debt while minimizing impact on your assets. Our attorneys have over 40 years of legal experience and are committed to giving each client the individualized, compassionate attention their case deserves.
Some of the areas we practice in include:
- Chapter 7 Bankruptcy.This class of consumer bankruptcy requires individuals to pass a Means Test to establish they do not have the ability to partially repay creditors. Your assets will go through the liquidation process, where nonexempt property may be sold to repay outstanding debts. Luckily, we can work to maximize the state of Texas’s generous exemptions to limit consequences of liquidation – you will likely not lose your house, car, or much of your personal property. At the end of the process, you will typically be permitted to discharge unsecured debts.
- Chapter 13 Bankruptcy. This category of consumer bankruptcy is intended for individuals who have sufficient disposable income to at least partially repay their outstanding debts. In lieu of liquidation, a bankruptcy court will evaluate your current financial situation to establish a monthly repayment plan. This plan restructures your existing debt and lasts between 3 and 5 years, giving you time to reorganize your finances and catch up on other nonqualifying payments. After successfully completing the repayment plan, you will generally be authorized to discharge unsecured debts.
- Credit Card Debt. If you have been forced to rely on credit cards to pay for necessities, it can be easy to rack up compounding, unsustainable debt. Because this type of debt is considered “unsecured,” you can typically discharge all unpaid credit card bills upon successfully completing Chapter 7 or Chapter 13 bankruptcy.
- Medical Debt. An unexpected visit to the hospital or a protracted stay can quickly result in seemingly insurmountable medical bills on top of your usual expenses. Even if you have steady income, it can become impossible to keep up with medical debt. Medical bills are also considered an unsecured debt, meaning you can often discharge them after your Chapter 7 or Chapter 13 bankruptcy has concluded.
- Personal Loans. There are situations where your financial situation requires you to take out a personal loan from a family member, friend, or employer. If your outlook does not improve, you unfortunately may not be in a position to repay. Personal loans are an unsecured debt that is commonly permissible to discharge once you complete a Chapter 7 or Chapter 13 bankruptcy.
- IRS Debt. The Internal Revenue Service (IRS), the government agency responsible for managing taxes, is not someone you want to owe money to. Tax debt can quickly accumulate as a result of severe late fee penalties and interest, and if you fail it off, the government has wide-reaching abilities to make your life unpleasant. Federal income tax that meets certain qualifications can potentially be discharged in a Chapter 7 bankruptcy or Chapter 13 bankruptcy.
- Wage Garnishment. The state of Texas bans the practice of wage garnishment, which involves your employer removing money from your paycheck to compensate creditors. However, several federal exemptions can still lead to situations where debts can place you in danger of wage garnishment, including unpaid child or spousal support, defaulted student loans, and unpaid income taxes. The underlying causes of wage garnishment can be in some situations combated through filing Chapter 7 bankruptcy and Chapter 13 bankruptcy.
- Judgment Liens. Texas does not permit judgment liens to be placed on personal property, which encompasses nearly everything except real estate. Judgment liens can be attached to property, which can make selling real estate assets difficult: The creditor associated with the lien will be entitled to a portion of any sale’s proceeds. Removing a judgment lien, called lien avoidance, is one of the trickiest areas of bankruptcy law. If your judgment lien meets certain conditions, a motion can be filed to potentially remove it in conjunction with a Chapter 7 bankruptcy or Chapter 13 bankruptcy.
- Foreclosure. The prospect of losing your home due to missed payments can be terrifying. The good news is foreclosures in Texas can potentially be stopped, and you will have plenty of notice before a sale endangers your home permanently. While you cannot discharge debts stemming from late mortgage payments, filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy entitles you to an automatic stay, a court order that halts all collection actions. This includes foreclosure, so as long as you file for bankruptcy prior to the auction, any sale of your home should be halted. Bankruptcy can enable you to reorganize and discharge other debts that may be preventing you from keeping up with your mortgage, thereby avoiding foreclosure in the long-term.