Problems with debt are a reality for more and more people these days. The easy availability of credit has made it all too easy to slip further and further into debt in a relatively short period of time. As a result, bankruptcy filings have reached record numbers in recent years, as more and more people are forced to seek legal help in dealing with their financial problems.

Financial problems can be deeply disturbing and extremely stressful. You should not feel alone or embarrassed about considering bankruptcy. It is only natural that you would prefer to pay your bills, but bankruptcy may be your best option if you are not able to pay all of your debt. When you're filing for bankruptcy, it is critical to understand your legal rights, and in the wake of new, increasingly complex bankruptcy laws, it is more important than ever to seek the advice of an experienced bankruptcy attorney.

For 13 years, Texas bankruptcy attorney Michael S. Mitchell has provided superior, cost-efficient and value-oriented legal services in a compassionate and respectful manner to clients in Plano and the surrounding areas. He is experienced in assessing and offering realistic options to help you deal with your growing financial difficulties. Whether you feel that you are drowning in debt, or even if you simply have a feeling of unease about your ability to continue to meet your debt obligations, he will assist you in choosing the financial course of action that is best for you, in the following areas:

• Debtor and Creditor Law
• New Bankruptcy Laws
• Chapter 7 Bankruptcy
• Chapter 13 Bankruptcy
• Debt Consolidation

Should you file for bankruptcy?
Contrary to what some firms would lead you to believe, this is not always an easy question to answer. The answer to this question involves analyzing not only your debts, but your income level, your assets, and your options.

Plano, Texas bankruptcy attorney Michael Mitchell has the expertise to help you review all the options that may be available to you before making a decision to file a bankruptcy petition. Such options include, but are not limited to, the following: consolidation loans, home equity loans, reverse mortgages, non-bankruptcy debt consolidation plans, refinancing of loan obligations, and sale of assets.

If you or someone you know in Plano or throughout Texas needs the advice of an experienced bankruptcy and debt consolidation attorney, call Michael S. Mitchell today at 866-740-1998, or complete the form on this site to schedule your free consultation.

Practice Areas and Legal Definitions

Bankruptcy laws are federal laws designed to give those who cannot repay their debts a "fresh start" in their financial affairs by either eliminating debts or allowing for a structured repayment of those debts.

The first part of the "fresh start" offered to those persons and businesses filing bankruptcy is protection from the normal collection efforts of their creditors. When the bankruptcy case is filed, creditors are notified and must immediately halt all collection activities. The filing of a bankruptcy case thus gives the debtor at least temporary relief from creditor contact, lawsuits, repossessions, foreclosures, and garnishments.

The second part of the "fresh start" is relief from some or all of the debtor's debts. The bankruptcy debtor's relief from his debts comes in the form of what the bankruptcy code refers to as a "discharge". Simply stated, a debtor who receives a discharge of his debts has those debts wiped out or eliminated so that his creditors can no longer seek to collect them. There are some limitations on the discharge of indebtedness, and that discharge is achieved in different ways depending upon the type of bankruptcy that the Debtor files.

The Federal Bankruptcy Code is organized into several different Chapters. Although there are many Chapters in the Code, the most commonly utilized ones are Chapter 7, Chapter 11, and Chapter 13.

Chapter 7 is what most people think of when they hear the word "bankruptcy." It is a liquidation bankruptcy, designed to eliminate or "discharge" many kinds of debts for those who lack the ability to repay them. In most cases, the debtor may retain necessary assets such as his or her home, vehicle, personal effects, and retirement funds while eliminating other debts.

The debtor is required to file documents with the bankruptcy court that provide various financial information and that detail the debtor's income, expenses, debts, and assets. The bankruptcy court turns these documents over to a "Trustee," who will meet with the debtor and his or her attorney to review all information provided by the debtor to ensure that the debtor has complied with all requirements of the bankruptcy code and is eligible to receive a discharge in bankruptcy.

Chapter 7 can discharge most unsecured debts, including credit card debts, signature loans, medical debts, etc. However, certain debts cannot be discharged in Chapter 7. Debts that are not dischargeable in Chapter 7 include, but are not limited to:

• Federally guaranteed student loans
• Child and/or spousal support debts
• Certain federal and/or state tax debts
• Debts incurred to pay taxes that are themselves not dischargeable
• Debts for money, property or services obtained by means of fraud, false representation or wrongful conduct including embezzlement or larceny
• Debts stemming from intentional or malicious injury to persons or property or from driving while intoxicated
• Criminal and/or civil fines or penalties owed to governmental entities
• Certain debts incurred shortly before filing bankruptcy

One practical limitation on the ability to file Chapter 7 is your income level. Simply stated, the courts try to reserve Chapter 7 for those whose income level is simply insufficient to allow them to repay any meaningful portion of their debts. Thus, your household income level has a great deal to do with your eligibility for Chapter 7.

Chapter 7 Bankruptcies generally take from 4 to 6 months to complete and require the debtor to make only one brief appearance at a meeting with the Chapter 7 Trustee.

As of October 17, 2005, the requirements in which a debtor may file Chapter 7 bankruptcy have changed under the Bankruptcy Abuse Prevention and Consumer Protection Act.  Debtors are required to seek budget and credit counseling within six months of filing, financial “testing” is required to determine the debtor’s capacity for debt repayment. State exemptions cannot be applied unless the debtor has resided at current residence for over two years.

Chapter 11 is typically utilized by medium to large business to attempt to reorganize and/or liquidate debts. Creditors play a somewhat larger role in the process of drafting and confirming a plan of reorganization than they do in Chapter 13. The additional procedural requirements imposed on Chapter 11 debtors by the bankruptcy code make the process more cumbersome and more expensive for the debtor.

As a practical matter, Chapter 11 is rarely helpful to individuals or small businesses, but can be utilized successfully by medium to large business debtors. Although Chapter 11 cases are filed far less frequently than either Chapter 7 or Chapter 13 cases, there has been a resurgence of Chapter 11 filings over the past several months.

A detailed in-office consultation is a pre-requisite to effectively advising you regarding the practicality of a Chapter 11 filing.

Chapter 13 is a "reorganization" bankruptcy which allows debtors to repay some or all debts under a court supervised repayment plan. As in Chapter 7, creditors are not permitted to engage in collection activities after the case is filed without obtaining court permission.

Chapter 13 can be used to:

• prevent foreclosures
• prevent auto repossessions
• repay delinquent auto, mortgage and other secured debts
• halt IRS garnishments or levies
• repay child support arrearages
• protect property that would have to be surrendered in Chapter 7
• obtain a bankruptcy discharge for those persons not eligible to file Chapter 7

A Chapter 13 repayment plan can be set up to allow you to repay debts by making a monthly payment over a period of time as long as five years and can allow you to retain property that would otherwise be lost to foreclosure, repossession, or garnishment.

Contrary to popular perception, it is not always necessary to repay 100% of your debts in Chapter 13. Credit card debts and other unsecured debts are paid if and only if funds remain after the debtor has repaid delinquent mortgage payments, auto debts, tax debts, and other secured or priority debts. Thus, the vast majority of debtors filing Chapter 13 still discharge a large portion of their unsecured debts.

Since most Chapter 13 debtors are not required to repay 100% of their debts, the monthly payment under a Chapter 13 plan can be established at a level that fits within a reasonable household or business budget.

If you or someone you know in Plano or throughout Texas that needs the advice of an experienced bankruptcy and debt consolidation attorney, call Michael S. Mitchell today at 866-740-1998, or complete the form on this site to schedule your free consultation.

Professional Profile

Attorney Michael S. Mitchell understands that financial difficulties can carry severe consequences for individuals and their families. Michael S. Mitchell  is committed to providing bankruptcy clients with aggressive and dedicated legal representation, while simultaneously treating them with genuine courtesy and respect.

If you or someone you know in Plano, Dallas, or throughout Texas needs the advice of an experienced bankruptcy and debt consolidation attorney, call Michael S. Mitchell today at 866-740-1998, or complete the form on this site to schedule your free consultation.

FIRM ADDRESS:
18111 N. Preston Road, Suite 810
Dallas, TX 75252
Phone: 866-740-1998

MEMBERS OF THE FIRM:
Michael S. Mitchell

EDUCATION:

• University of Texas at Austin, B.A., 1990
• Texas Tech University School of Law, J.D., 1993
  

• All Texas State Courts
  
• United States District Court, Northern and Eastern Districts of Texas
• United States Bankruptcy Court, Northern and Eastern Districts of Texas