Board Certified in Consumer Bankruptcy Law: (713) 622-1600
If you can't meet basic living expenses because of credit card debt, or your house is in danger of foreclosure, there is help. Bankruptcy offers a fresh start, and gets creditors off your back while you catch up on payments.
Liza A. Greene in Houston, Texas, represents individuals in the greater Harris County area in Chapter 7 and Chapter 13 bankruptcy proceedings. Liza Greene is Board-Certified in Consumer Bankruptcy Law by the Texas Board of Legal Specialization. Contact her today to discuss your unique situation and your debt relief options.
Chapter 7 Bankruptcy
When you file for Chapter 7 bankruptcy, creditors must stop all collection actions and phone calls. Unsecured debt (credit cards, medical bills) is discharged (eliminated). Secured debt (mortgages, car loans) is not eliminated — you can either surrender those assets to the bankruptcy trustee or keep them if you are able to make the payments. Student loans, most taxes, and child support cannot be discharged through bankruptcy.
Under Chapter 7, non-exempt personal assets are liquidated to pay creditors a portion of what you owe. However, most assets (home equity, vehicles, furnishings, retirement funds) are exempt under the bankruptcy statutes, so most people will not lose any personal property.
Chapter 13 Bankruptcy
Changes in the federal bankruptcy law set stricter limits on who can file for Chapter 7. If your income is above the median for the county in which you reside, you may be forced into Chapter 13 bankruptcy. Also called reorganization, Chapter 13 allows you to retain assets under an agreement to repay debts over time without additional penalties and interest.
Chapter 13 is a good option if you are facing foreclosure on your home or repossession of a car, if you owe back taxes or child support, or if you wish to retain a business. Based on your available income (after living expenses), the trustee determines a monthly payment for a specified period. Remaining debts are discharged if you make the payments.
The Bankruptcy Process
Chapter 7 bankruptcies are typically discharged in three to four months. Chapter 13 payments are spread over 36 to 60 months (three to five years). After filing, a hearing called the Meeting of Creditors is set to meet with the trustee. (Creditors usually do not attend.)
In addition to increased documentation, bankruptcy law requires filers to attend a pre-petition credit counseling class and a post-petition debt management counseling before their bankruptcy can be discharged.
Credit Rating and Ability to Borrow
A Chapter 7 bankruptcy stays on your credit report for ten years. Most people are able to re-establish good credit and qualify for loans and credit cards within two years.
A Chapter 13 stays on your credit report for seven years. During the period you are making payments, you cannot obtain credit (loans or charge cards) without permission from the trustee. Because you are repaying a significant portion of the debt, a Chapter 13 looks better to future lenders.
Experience and Compassionate Guidance
Practicing since 1981, Liza A. Greene brings more than three decades of experience, skill, and creativity to the highly complex field of bankruptcy law. She will explain your options, help you assemble documentation, and work to ensure that you emerge from bankruptcy with all or most of your assets. Contact her Houston office today to arrange your initial consultation.
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Liza A. Greene
Myres & Associates, PLLC
1717 St. James Place
Suite 450
Houston, Texas 77056
Telephone (713) 622-1600
Fax (713) 622-1610
E-mail
