The Law Office of Nima Taherian provides bankruptcy advice and representation to Texas clients in the Greater Houston area. Filing for bankruptcy can be a difficult decision without the legal assistance of an experienced bankruptcy lawyer. Below you will find answers to frequently asked questions about bankruptcy. If you have additional questions, or would like to learn if bankruptcy is the best option for you, contact the Law Office of Nima Taherian today for a free consultation. For more information about bankruptcy, please see our bankruptcy overview.
What is the difference between Chapters 7 and 13?
For individuals considering filing for bankruptcy, deciding whether to file under Chapter 7 or Chapter 13 depends on a number of factors. Chapter 13 bankruptcy is generally available to individuals with regular incomes and more manageable debt amounts. Filing under Chapter 13 can stop foreclosure on your home, allowing you to pay off your delinquent mortgage payments over time. Chapter 13 also simplifies your debt payments and often eliminates direct contact with creditors. Chapter 7, by contrast, typically requires some liquidation of assets, or selling your property to pay off creditors. However, some eligible debtors may be able to have a significant portion of their debt discharged under Chapter 7. For more information, visit our Chapter 7 and Chapter 13 bankruptcy pages.
What property can I keep?
Every situation is unique, and the retention of assets can also depend on what type of bankruptcy you choose. Under Chapter 7 bankruptcy, your house and up to two cars may be safe if much of your debt can be liquidated by other means or discharged. Chapter 13 bankruptcy often allows a debtor with steady income to retain the majority of his or her assets in favor of a restructured payment plan based on that income.
How much will it cost?
Much like retaining your property, the cost of filing for bankruptcy varies according to each individual’s or business’s unique financial circumstances. Generally, if your debt is significant and spread among many creditors and your assets are also diverse, bankruptcy filing can be especially complex. We help clients with even the most complex filings find a cost-effective resolution, such that bankruptcy provides a fresh start and stability.
Will Chapter 11 work for my business?
Filing under Chapter 11 is often not appropriate for many businesses because it is more complex and costly than Chapter 7 or Chapter 13 filings. However, it gives a business the option of reorganizing to manage its debt while maintaining operations. If remaining operational is not feasible for a business, Chapter 7 liquidation is probably a more viable option.