Bankruptcy

Whether due to job loss, illness, divorce, or wages that simply cannot keep up with the increased costs of living, filing for protection under Chapter 7 or Chapter 13 bankruptcy laws can relieve you of financial distress. Filing for Bankruptcy relief can literally wipe out all of your debts and give you a fresh financial start.

Under the new bankruptcy laws, you must pass a means test to file Chapter 7 bankruptcy. If your current monthly income is below the adjusted median income in Texas, you automatically pass the means test. Otherwise, you must pass a secondary means test that deducts expenses, such as vehicle loan payments and 401(k) contributions, to determine if you qualify. We can walk you through the calculation and determine if you are eligible for this type of bankruptcy.

Chapter 13 is distinguished from Chapter 7 by is its debt repayment requirement. Chapter 13 debtors must file a plan for paying off debts according to certain classifications and then make monthly payments to a trustee, who then distributes the payments to the respective creditors. Payments under a Chapter 13 plan continue for a three to five year period, or until the case is completed, dismissed or converted to Chapter 7.

Under Chapter 13, Wylie & Wray can help you maximize the value of your rights under the Bankruptcy Code. We can structure your plan so that higher priority or interest-bearing claims get paid first, which extends the debt reduction impact of your monthly payments. We can also make arrangements with holders of secured claims to reduce your liability for such obligations as tax penalties and interest.

With careful financial planning after their bankruptcy case is completed, most of our clients' credit scores actually improve after bankruptcy because the balances of their unsecured debts have been removed from the credit report.  In fact, you can achieve a credit score above 700 only a few years out of bankruptcy.

Keller, Texas Bankruptcy Lawyer Ryan Wray can Guide You Through the Recent Changes in Law.

Many people erroneously believe that the new bankruptcy laws that took effect in 2005 will automatically prevent them from filing bankruptcy in Texas.  In fact, the opposite is true.  Over 90% of those who qualified for bankruptcy protection before the new laws took effect remain qualified for Chapter 7 or Chapter 13 bankruptcy.  As a result, many are still able to discharge 100% of their unsecured debts.  Attorney Ryan Wray will walk you through the qualification process step by step.

Bankruptcy should always be a last resort. However, for many consumers and small businesses, it is the best way to resolve debt problems. Wylie & Wray offers a free initial consultation to assess your financial situation. Contact us today to schedule yours.