File Without An Attorney

Deciding to file for bankruptcy is a difficult and complicated decision. It’s not right for everyone. For example, you cannot eliminate most tax, student loan, or child support debt in a bankruptcy. Before you file for bankruptcy, it’s always a good idea to discuss your options with an experienced consumer bankruptcy attorney. Depending on the types of debt you owe, your financial circumstances, and other factors, bankruptcy might be your best option. Other times, we discover that our clients have non-bankruptcy options that can help them control their debt.

However, the most common mistake is filing for the wrong bankruptcy chapter. Consumers can file for bankruptcy under either Chapter 7 or Chapter 13.

Chapter 7 Bankruptcy

You must sell specific assets, use the proceeds to pay your debts, and the remaining debt is eliminated.

Chapter 13 Bankruptcy

You enter a payment plan with your creditors and do not have to sell your assets.

What Are the Pros and Cons of Chapter and Chapter 13?

Both types of bankruptcy have strict eligibility criteria and offer specific advantages and disadvantages.

For example, while you get to keep your home, vehicle, and other assets in a Chapter 13 bankruptcy, you’ll have to follow a strict repayment plan for years to come. In comparison, Chapter 7 bankruptcy is relatively quick and can eliminate large amounts of debt, but you’ll lose many of your non-exempt assets and you’ll have to meet a complicated “means test.” Many people just can’t fully assess their options and whether they meet the Chapter 7 means test without help from a bankruptcy lawyer.

When you work with Allmand Law Firm, PLLC, we get time to understand both your debt and long-term goals. Based on your unique needs, we carefully assess our clients’ options and help them build comprehensive debt recovery plans that meet their needs. And because our team includes board-certified consumer bankruptcy expert, our clients can rest assured that they are getting practical and accurate advice.

You might ask yourself, “Who cares if I choose the wrong chapter or miss a form?” The answer is simple: the federal courts, your bankruptcy trustee, and your creditors. When you file for bankruptcy yourself, the court doesn’t give you any special help or personalized advice. Instead, you are solely responsible for learning federal bankruptcy law and the court’s specific procedures and rules. Do you have time to read and interpret the U.S. Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, and your federal bankruptcy court’s local rules?

If you miss a deadline, forget a form, or accidentally miss a property exemption, these mistakes can have very significant consequences, including:

• Losing property that you could have kept under a Chapter 7 property exemption or a Chapter 13 bankruptcy, like your home
• Having to pay debts that you accidentally failed to list in your bankruptcy
• The dismissal of your bankruptcy claim and renewed, harassing debt collection techniques
• Wasted time in unnecessary hearings and court appearances
• Defaulting on your Chapter 13 payment plan because you agreed to unrealistic terms and conditions
• Facing allegations of fraud filed against you by your creditors or the bankruptcy trustee

An attorney’s job is to guide you through the complicated bankruptcy process and help you avoid these problems.

Less than 1% of all Texas lawyers are board-certified in Consumer Bankruptcy. Reed Allmand is one of these rare, skilled attorneys. He and his team have helped thousands of Texans with their bankruptcies, foreclosures, and other debt relief needs. If you’re ready to schedule your free, no-risk consultation, contact Allmand Law Firm, PLLC today. We’d love to help you take the first steps towards a new financial future.