Practice Areas and Legal Definitions

Every year, more than 1,000,000 Americans file for protection under Federal bankruptcy laws. Although some bankruptcy claimants are deemed as credit abusers and/or considered financially irresponsible, many hardworking individuals and businesses can succumb to financial difficulty, and face irreparable economic crisis. Bankruptcy is designed as a legal option to help resolve such a crisis, and act as a financial life preserver for those drowning in debt. To discuss your bankruptcy options, or other areas of recourse that might be available to you, contact a qualified bankruptcy attorney who can advise you of your legal rights as stated under Bankruptcy Law and federal Bankruptcy courts.

Bankruptcy Laws:
Bankruptcy is a federal court process designed to help individuals and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as liquidation or reorganization. Under a liquidation bankruptcy (Chapter 7), a claimant files to eliminate debt through the bankruptcy court. Under a reorganization bankruptcy (Chapter 13), a claimant files a plan with the bankruptcy court proposing how to repay creditors.

In 2005, the requirements under which a debtor could file Chapter 7 bankruptcy changed with the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act.  Debtors are now 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, Chapter 7 cannot be filed if the household income is greater than the median household income as deemed by the state, and state exemptions cannot be applied unless the debtor has resided at current residence for over two years.

Due to the imposed requirements for Chapter 7 bankruptcy as set forth by the new laws, debtors who were eligible to file under Chapter 7 now have to file under Chapter 13 bankruptcy instead, in which individuals and creditors agree to a court-imposed plan that requires some or all debts be repaid over five years, with an appointed trustee assigned to monitor the repayment process. Bankruptcy filings will continue to be recorded on an individual’s credit report for seven years in the case of Chapter 13, and up to ten years for Chapter 7.

Chapter 7:
Chapter 7 cases are commonly referred to as straight bankruptcy or liquidation cases, and may be filed by an individual, corporation, or a partnership. A Chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in Chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under Chapter 7 may result in the loss of property.

Chapter 13:
A Chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. Chapter 13 permits individuals to keep their property by repaying creditors out of their future income.  It is not available to corporations or partnerships. After completion of payments under the plan, Chapter 13 debtors receive a discharge of most debts.

Foreclosure:
Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner's failure to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, it is typically said that "the lender has foreclosed its mortgage or lien".

A Foreclosure by Sale ends in the posting of a sign advertising the auction of your home on the sale date. The only ways to stop a foreclosure are full payment of the arrearage, or the filing of a Chapter 13 bankruptcy. Full Payment: If you are able to obtain and tender the full amount of your arrearage, including fees and costs, you can stop the foreclosure of a standard residential mortgage. Most people lack the money to make full payment. This process stops the foreclosure and allows you to repay your arrearage over a three-to-five year period. The arrearage is paid through a court-appointed official, while you resume your regular monthly payments to the bank in order to keep your home. A Chapter 13 can be filed at any time prior to the law day or sale date, and it is often the only avenue to save your home.

Debt Consolidation:
Contrary to popular belief, debt consolidation is not a loan. Debt consolidation is a process in which debt is restructured into one low monthly payment. It further enables a consumer to reduce the amount owed and thereby eliminate interest. Very often a consumer can detect warning signs of being in too much debt long before any collection notices are received. If more than two of the following signs apply to you, you are probably in too much debt:

• You have begun charging to your credit card essential expenses like food and daily expenditures
• You are making only the minimum payments on your credit cards each month
• You are near the limit of your credit cards
• You have too many credit cards
• You are unsure how much money you owe creditors

Chapter 11:
Chapter 11 is typically used for business bankruptcies and restructuring. It is not commonly used by individual consumers since it is far more complex and expensive to pursue. It allows businesses to reorganize themselves, giving them an opportunity to restructure debt and get out from under certain burdensome leases and contracts. Typically a business is allowed to continue to operate while it is in Chapter 11, although it does so under the supervision of the Bankruptcy Court and its appointees.

If you or someone you know needs the assistance of an experienced San Antonio Bankruptcy lawyer, call Randolph N. Osherow today at 866-927-9191, or complete the contact form provided on this site to schedule a free consultation.

If you or someone you know needs the assistance of an experienced San Antonio Bankruptcy lawyer, call Randolph N. Osherow today at 866-927-9191, or complete the contact form provided on this site to schedule a free consultation.

ADDRESS OF THE FIRM:
Randolph N. Osherow, P.C.
342 W. Woodlawn
San Antonio, TX 78212
Phone: 866-927-9191
Hours: M-F, 8:00AM-5:00PM

MEMBERS OF THE FIRM:

Attorney Randolph N. Osherow

• Date Admitted to the Bar: 1977
• Colleges Attended, Degree & Year Graduated: Trinity University, San Antonio, Texas, 1970-1974, Philosophy Major, Psychology Minor; Law School: St. Mary's University, JD, 1974 through 1977, San Antonio, Texas, Jurisprudence awards in corporate and administrative law; University of Mexico, San Antonio, Texas- 1988, studied Spanish; San Antonio College, San Antonio, Texas, studied Spanish 4 semesters 1993 through 1994 and photography fall of 1993; Mediation Training, Dispute Resolution Center, Austin, Texas July 1999.
• Professional Memberships & Achievements: Member of New Hampshire Bar Association, Member and past president of Strafford County Bar Association, Charles C. Doe Inns of Court, Life Fellow - New Hampshire Bar Association, on the list of mediators, United States District Court, Western District of Texas, San Antonio Division.
  
• Employment: Self employed since 1977, Randolph N. Osherow, P.C.
• Specialization/Certifications: State Bar of Texas/ Consumer Bankruptcy since 1985; State Bar of Texas/ Business Bankruptcy since 1990; Mediation Training-Dispute Resolution Center-Austin, Texas, July 1999.
• Organizations: American Bankruptcy Institute- 1993-1995; Bankruptcy Law Committee of the State Bar of Texas Business Law Section -1994; Bankruptcy Subcommittee of the Federal Courts Committee - 1993; College of State Bar of Texas- 1993; Commercial Law League of America 1994 to 1998; Federal Bar Association since 1989; Federal Bar Association, San Antonio Chapter- Treasurer 1995 to 2000; Federal Courts Committee 1994 to present; 5th Circuit Court of Appeals since May 1990; San Antonio Bankruptcy Bar Association- President 1991; San Antonio Bankruptcy Bar Association Newsletter-Editor 1986 to 1999; San Antonio Bar Association since 1978; San Antonio Bar Association Charity Golf Committee, Founder & Chairman 1991-1992; St. Mary's University Law School Board 1991 to 1993; State Bar of Texas Law License 1977; Society of Professionals in Dispute Resolution 1999; Southern District of Texas since 4/93; US Bankruptcy Court, Western district of Texas Strategic Planning conference committee 1996; Western District of Texas since 1982.
• Teaching Experience: Business Law Instructor at Trinity University, San Antonio, Texas 1982-85; San Antonio Bankruptcy Bar Annual Lecture from the Chapter 7 Panel of Trustees; Lecturer on Bankruptcy Law at the Federal Bar Seminars - 1990 Federal Bar Association- November 18, 1992- Judge Ronald B. King and Trustee, Randolph N. Osherow Recent Trends in the Bankruptcy Practice; Lecturer at the National Contact Lens Credit Group, September 17, 1993; San Antonio Marriott Riverwalk regarding aspects of Texas Commercial Bankruptcy Law; Federal Bar Association- March 16, 1994-Bankruptcy and the IRS, How to Preserve Your Client's Backside; State Bar of Texas 10th Annual Advanced Consumer Bankruptcy Law Course- Appeals, September 1994; Lecturer at the San Antonio Bar Association Family Law Section on Bankruptcy and Divorce June 30, 1998; Instructor at the National Christian University, San Antonio, Texas in Bankruptcy Law 1st semester of 2000, 2nd semester 2000 and 1st semester 2001; Panelist at USFN National Default Servicing Seminar & Technical Fair; Bankruptcy Review- Meet the Court, Hyatt Regency, San Antonio, Texas; May 3-5-2000 Lecturer at Stromar Educational Services, Inc. Seminar- Fundamentals of Consumer & Business Bankruptcy (Bankruptcy & Mediation & Ethics), May 24, 2000, Summer Suites, Riverwalk, San Antonio, Texas; Lecturer at National Association of Bankruptcy Trustees Annual Convention, September 15, 2000 in Monterey, California; AA Non Combative Approach to Problem Solving in Bankruptcy Lecturer at Austin, Texas; Bankruptcy Bench Bar Conference, September 28, 2000; Volunteer Judge at St. Mary's University School of Law Mock Trial Competition, October 25, 2000; Lecturer at Lorman Education Services, November 15, 2000, San Antonio, Texas;  Bankruptcy in Texas, a Creditor's Perspective: Topic- Creditor Strategies in Working with Bankruptcy Trustees.
• Chapter 7 Panel Trustee: San Antonio Division since 1985; Austin Division since 1988. I have also had special cases assigned in Midland, Waco and El Paso, Texas up until a couple of years ago. Did Midland about 20 years ago and El Paso up to 2005. Substituted for Marion Olson, Jr., Chapter 13 Trustee, conducted 341 first meeting of creditors -1992 to 1999.
• Notable cases: 

• King William Hospital: Chapter 7, San Antonio case, closed down operating hospital facility-1988.
  
• Food City- 1988: Chapter 11 reorganization of food/ grocery chain, attorney for debtor in possession, successful completion of chapter 11 plan of reorganization.
  
• Office Products of America: Chapter 7 liquidation, 1992-1993- distribution to unsecured creditors, $4,700,000.00.
  
• Rio Airways-1983: Waco case, small commuter airlines, final report filed 1/93.
  
• Scenic Oaks Water Supply Co.- San Antonio water company-1993.
  
• Travis Country Utilities: Municipal Utility District-sewage disposal, involves federal regulations, state regulations and City of Austin. Operations stopped as of 1/1/93.
  
• American Solar King-public company-1994-1995.
  
• Mayflower Insurance and Jordan Insurance- Dallas based insurance companies-1994.
  
• Liberty Trust Co.- Midland case, principle of debtor in prison complicating tax work-1990-1995. Operation Friendship-operating chapter 7 case, involving a charity thrift store-1994-1995.
  
• Intelogic Trace-public company, 5th Circuit Appeal on accounting malpractice standards.
  
• 1995 Allied Home Health Care -converted from chapter 11 to chapter 7 in July 1996-complex operating chapter 7 case involving home health care business. Operated for 2 years-1996-1999.
  
• All America City Realty, Inc.- operated and sold liquor sales company in El Paso, Texas-1997.
  
• Agency Management Services- home health care business 1998.
  
• Oilex-complex oil and gas case, operated oil wells, sold assets of the estate-1999-2000.