According to the American Bankruptcy Institute, Texas businesses and residents filed 35 percent more bankruptcies in 2010 than in 2007.

This is a common process and Dallas Bankruptcy Lawyers can help a family get back on track with their finances after the loss of a job, unexpected medical bills or overspending. Bankruptcy law in Texas is designed to help people who are willing to take responsibility for their budget and want to improve their financial future.

According to U.S. Bankruptcy Court, there were 57,328 bankruptcy filings in Texas in the first quarter of 2011, a 2 percent jump from the 2010 first quarter, when there were 57,208.

While Chapter 7 and Chapter 13 are the most common types of bankruptcies, businesses also have the possibility of filing for bankruptcy protection from outstanding debts and creditors. In fact, an investment group led by former Texas Rangers first baseman Rafael Palmeiro recently filed for Chapter 11 bankruptcy protection in Fort Worth, the Fort Worth Star-Telegram reports.

According to the newspaper, Palmeiro’s limited partnership and limited liability corporations planned a 162-acre mixed-use development in Grapevine in Tarrant County and had planned hotels, a 20-acre Asian-themed garden, river walk, waterfalls, shops and offices. According to court documents, the partnership listed $50 to $100 million in assets and $10 to $50 million liabilities. The Llc listed $100,000 to $500,000 in assets, but $10 to $50 million in liabilities. Chapter 11 bankruptcy will allow the company to reorganize while it remains protected from creditors.

Many people feel ashamed and embarrassed to consider bankruptcy, but for businesses who take a bad gamble or people who get caught up in a bad economy, the laws can be essential to getting healthy financially. Even multi-millionaires use bankruptcy for protection, so why should everyday citizens feel ashamed?

Dallas Chapter 7 bankruptcy is designed for people with few assets and possibly those who have recently been laid off or fired from their jobs and are having a hard time paying bills. As debt mounts and creditors come calling, filing for this type of protection can help them make a fresh start.

Chapter 13 bankruptcy is a little different and it is primarily applied to people who are stuck in a bad situation of piling debt, but who have large assets, possibly a house they can’t afford to lose. What this form of bankruptcy does is allows people to propose a 3- to 5-year plan of paying off debt while allowing them to keep large assets. This, too, can be beneficial to families struggling to get by.

If you need to speak to a bankruptcy lawyer in Dallas contact the Law Firm of Warren & Migliaccio L.L.P at 972-205-9750