Houston Bankruptcy Lawyer
James Patrick Brady

What is bankruptcy?
Bankruptcy is the legal method for a debtor to discharge or relieve debt. Bankruptcy is a way for people or a business who owe more money than they can pay to either work out a plan to repay the money over time or to have their debt wiped out. While no debtor is guaranteed a total discharge, most debtors who file for bankruptcy are given such relief. One of the primary purposes of the bankruptcy act is to relieve the honest debtor from the weight of oppressive indebtedness and to provide the debtor with a fresh start. Title 11 of the United States Code regulates the filing of a bankruptcy. If the debtor initiates the bankruptcy it is called a voluntary bankruptcy. If the creditor initiates the bankruptcy it is called an involuntary bankruptcy. In an involuntary bankruptcy the debtor has the opportunity to contest the petition. While the debtor is either working out a plan or the trustee is gathering the available assets to sell, the Bankruptcy Code provides that creditors must stop all collection efforts against the debtor. The Bankruptcy Code regulates what chapter you must file under, what bills can be eliminated, how long payments may be extended, what possessions you may keep, and all other details concerning the bankruptcy.

Does credit counseling work?
Many of my clients have tried credit counseling services before deciding to file bankruptcy. That process proved to be unsatisfactory due to continued harassment by creditors and the payments were often too high to make it feasible.

Be careful in selecting a company if you decide to try this approach and make sure you understand what they can do for you and what they charge for their services. You may want to consult a bankruptcy lawyer before you commit to a debt service so you at least know you options.

Should I feel guilty about filing bankruptcy?
Most clients I have represented over the past 30 years did not feel good about having to file bankruptcy and only filed as a last resort. Bankruptcy can save the home you have struggled for years to keep, can save a car that you need to get to work and can stop the calls from creditors that tell you to pay them rather than your house or car.

If you have considered filing bankruptcy, an appointment with us to discuss the details of your situation can provide you with the information you need to make an informed decision.