Guiding you through life’s unexpected legal obstacles.

“Warren & Migliaccio is a debt relief agency that helps people and their loved ones file for bankruptcy”

Bankruptcy cases encompass the dissolution of a business or the reorganization of a person’s estate, as well as the impact of these events on the creditors of businesses or individuals.

It is a legally declared inability or impairment of a person, organization or business to pay creditors. Creditors may file a bankruptcy petition (involuntary bankruptcy) against a debtor in order to recoup a portion of what they are owed.  In most situations, a debtor will initiate a voluntary bankruptcy that is filed by the individual or organization.

Bankruptcy seeks to benefit a debtor by seeing that debtors get partial or complete relief from debts they can not pay.  When you file the bankruptcy, the Court orders an automatic stay and all collection activities of creditors stop immediately.

Depending on the type of bankruptcy and your situation, bankruptcy may wipe out (discharge—Chapter 7)the debts you owe or allow you to file a plan (reorganization Chapter 13) with bankruptcy court proposing how you will repay your creditors.

Bankruptcy can give you a chance for a fresh financial start!

Chapter 7 Bankruptcy

Chapter 7 bankruptcy involves the sale (liquidation) of debtor’s non-exempt assets.  The proceeds are distributed to the debtor’s various creditors according to the priorities established in the Bankruptcy Code .   Most Texas Chapter 7 debtors tend to have little non-exempt property due to Texas’s liberal exemption laws.  In the vast majority of cases, the debtor has no assets he or she will lose in a Chapter 7 bankruptcy.

Chapter 7 provides the debtor the opportunity to give up all nonexempt property in exchange for receiving a discharge on most of his or her debts.  This means that you no longer are liable to pay those debts.  However, some debts like student loans and past-due child support payments are not discharged.

There is a Means Test that must be passed to qualify for a Chapter 7.  The Means Test looks at your debts, income and assets to determine if you qualify.  Debtors who fail the Means Test have to file Chapter 13 Bankruptcy.  A Means Test can be run by your attorney after providing him with the necessary information.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy also known as reorganization bankruptcy is a repayment plan that is calculated based on your budget.  Essentially, the you pay to Trustee any money that is left over each month after reasonable expenses are deducted from your income and this money is paid towards your debts over a period of three to five years.

Once the repayment plan is complete, you will no longer be personally liable for any remaining unsecured debt that is dischargeable.

Chapter 13 allows you to pay off arrearage or late payments in your repayment plan .  This is ideal in helping you catch up on your mortgage and stopping foreclosure , repossession, and IRS wage garnishment.  Chapter 13 is appropriate to individuals who have non-exempt property they want to keep.

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