Bankruptcy law

Habib Law Firm is an immigration law, bankruptcy law and employment law firm in Dallas, Texas. Our law firm offers affordable legal services to our clients to individuals and businesses throughout the United States. We work hard to understand each client's unique situation so that we may aggressively protect their interests. Our firm's lawyers stay up to date with frequently changing laws and regulations and take pride in achieving favorable outcomes. We are committed to frequent communication and ready accessibility, which we can obtain client input quickly and move forward in an expeditious manner. You will work directly with an attorney at our firm from start to finish and we will make sure the process as easy as possible for you so that you can focus on your daily life.
Contact us to setup a free consultation with Dallas Immigration Attorney Tope Habib, Plano Bankruptcy Attorney and Farmer's Branch Employment Attorney genuinely kind attorney with excellent achievement.

Dallas Bankruptcy Lawyers

If you have questions about resolving your debt, talk to our Dallas Bankruptcy attorneys at Habib Law Firm. We have a reputation for dedicated and experienced representation, and our attorneys are equipped to help you find effective solutions to your debt. Sounds crazy, but filing bankruptcy may be the best financial decision you've ever made. No, it's not a disgrace or shame to file. The laws are in place for a very good reason. Stop a foreclosure, lawsuit or garnishment by filing under Chapter 7 or Chapter 13. If you're attempting to save and maintain a home or vehicle, reorganize your debts under Chapter 13. The Dallas bankruptcy lawyers at the Habib Law Firm are ready to advise you in the manner most appropriate to your circumstance.
Since the bankruptcy laws have changed since 2005. it is strongly advised that you seek legal advice because of the complexity involved in the process. Let our Dallas, Lewisville, Irving, McKinney and Fort Worth, Farmers Branch bankruptcy attorney assist you to a fresh start.
We provide our clients with a family-oriented atmosphere where you can feel at ease discussing your situation. Our experience handling hundreds of bankruptcy cases each year has given us the understanding and knowledge necessary to help you, no matter what your situation may be. We offer personal, compassionate services that are directed at moving you through the bankruptcy process as quickly and effortlessly as possible. With just one simple consultation, we can file the documents necessary to protect your property and completely change your life. Our firm works hard to gather the information necessary to make a bankruptcy filing during a single meeting. We understand how busy you are, so we strive to take up as little of your valuable time as possible.

The bankruptcy lawyers at our firm can provide solutions to all varieties of Bankruptcy and Debt related problems including:
• Foreclosures;
• Collection matters;
• Tax trouble;
• Liens & seizures;
• Appeals; and
• Garnishments.

CHAPTER 7 BANKRUPTCY RELIEF

Dallas Bankruptcy Lawyers

Chapter 7 bankruptcy is also sometimes referred to as a "liquidation" proceeding. The debtor receives a discharge of all dischargeable debts, usually within four months. In most cases, the debtor has no assets that they would lose, so Chapter 7 gives the person a relatively quick "fresh start". If there are non-exempt assets, the debtor will be required to turnover such property to the Chapter 7 Trustee, who then distributes the property for the benefit of the creditors.
Chapter 7 will do the following for you:
I. Protects you from Creditors – Once you file for bankruptcy protection, your creditors CANNOT call you and demand payment nor proceed with lawsuits, judgments, or garnishment of your wages or financial accounts.
II. Affords you a "fresh start" – Eliminating most of your debts and allowing you an opportunity to re-build your credit from a poor credit score.
III. Allows you to keep your car and/or home – Eliminating most of your unsecured debts (i.e., credit card, medical debt and personal loans), and permitting you to keep your home or car so long as you maintain your payments current, while wiping out your personal liability on the mortgage or car note.
IV. Prevents continued damage to your credit report – Filing for Chapter 7 Bankruptcy stops negative reporting. Your creditors need to report that your debts have been discharged.

AUTOMATIC STAY
When you file for Chapter 7 bankruptcy, an "automatic stay" goes immediately into effect. The automatic stay stops creditors from doing anything to collect the debts you owe (unless the bankruptcy court allows otherwise). This will stop all phone calls, letters, lawsuits, garnishments or any other form of collection.

QUALIFYING FOR CHAPTER 7
You can file Chapter 7 once every 8 years from the filing date of a prior Chapter 7.
There is also a two-part test to determine if you qualify for a Chapter 7:
A. Actual Budget – Here the court may look at your actual budget. If your net income exceeds your reasonable expenses (not counting payments on debts you are discharging), you may instead have to consider filing a Chapter 13 reorganization for relief.
B. Means Test –The court will look to the State Median Income for your household size. Your gross household income average for the past six months is compared to the median state income. If you earn in excess of the state median income, and are able to repay 25% of your "non-priority unsecured debt," then you will be unable to file for Chapter 7.

DISCHARGEABILTY OF DEBTS
The following debts are non-dischargeable in Chapter 7. If you file for Chapter 7, your creditors can collect on them once your case is over.
• Debts for most recent income tax debts and all other tax debts. Tax debts are very technical, and certainly require a consultation in person to best advise you as to how to proceed;
• Debts for most student loans;
• Debts that are in the nature of child or spousal support or maintenance;
• Debts owed to homeowners' or condo associations in cases where you are surrendering your property. In these cases, you are liable for any dues owed on the property from the time when the case is filed until when the property goes to foreclosure and the deed is no longer in your name.
• Debts for personal injury or death caused by you driving your vehicle while intoxicated;
• Debts for most fines and penalties imposed for violating the law, such as traffic tickets and criminal restitution; and
• Debts for which the debtor has given up the discharge protections by signing a reaffirmation agreement in compliance with the Bankruptcy Code requirements.
In addition, other debts may be declared non-dischargeable by a bankruptcy judge in Chapter 7 if the creditor challenges your discharge request. It is a rarity that you would have to retain our office to handle dischargeability issues. They include:
• Debts you obtained through fraud;
• Consumer debts owed to a single creditor and aggregating more than $500 for luxury goods or services incurred within 90 days of filing;
• Cash advances aggregating more than $750 or more incurred within 70 days of filing;
• Debts for willful and malicious injury by the debtor to another person or another person's property;
• Debts for breach of trust, embezzlement or larceny;
• Debts from a divorce decree or separation agreement.
In Chapter 7, you must list all of your assets. The Dallas Bankruptcy lawyers will attempt to protect the assets you are allowed to keep from either a list of state or federal exemptions. Each jurisdiction has its own specific exemptions, so consult your Dallas bankruptcy, Lewisville bankruptcy and Forth Worth bankruptcy lawyer. Some states have elected to use their own state exemptions, while others have elected to keep the federal exemptions.

HOME OWNERSHIP AND BANKRUPTCY
Obviously, one of the biggest concerns you may have when thinking about filing for bankruptcy is the possible loss of your principal residence. If you are don't have equity in your property (see above discussion), the other concern is the status of your payments on your mortgage. If you are in arrears with your mortgage payments, you will almost definitely lose your property if you file a Chapter 7. The Chapter 7 will stop foreclosure proceedings, but since it does not propose a repayment plan, the mortgage company will file a motion with the Bankruptcy Court to lift the automatic stay to begin or resume the process to sell your home. If you are current with your payments and have no equity, you should be able to keep your property.
If you are behind on your mortgage payments, you may want to file Chapter 13. You will be able to save your house if you properly immediately restart making the regular payments called for under your loan (after the case is filed) and repay your mortgage arrears through your Chapter 13 Plan.
Finally, if you are in a position where you are unable to keep your home, you will be able to surrender the property to the mortgage company and discharge your mortgage debt. Our office can assist you with this difficult process.

RENTING AND BANKRUPTCY.
If you are past due with your rent, your landlord will likely attempt to start or continue with eviction proceedings. Filing for bankruptcy will slow down the process, but you must promptly get current with your payments, if you plan on continue living there.

THE EFFECTS OF BANKRUPTCY ON YOUR CREDIT
Bankruptcy no longer has the personal stigma attached to it that it once did. In fact, clients often state that they receive more credit card applications and offers for car loans after filing their case than before filing. Creditors are often attracted to your situation after your discharge. Individuals often qualify to by cars immediately after filing and homes two years after a bankruptcy was filed.
By making on time payments on new debt incurred after your bankruptcy, you can regain your credit rating within a relatively short time from your discharge. In fact, in many cases filing bankruptcy may actually help your credit score because discharging your debts greatly improves your debt-to-income ratio, which is a major factor creditors look at in judging your "creditworthiness". This can occur even though the filing will still be noted by the credit reporting agencies for 7 to 10 years.

CHAPTER 13 RELIEF – Stop Foreclosure, Consolidate and Eliminate Debts under the Chapter 13 Plan
Chapter 13 Bankruptcy is a court-enabled reorganization that can be used to stop foreclosure of your home, repossession of your car, or any other form of collection. The Chapter 13 petition would need to be filed before the sale date of your property to be effective. After filing, you will propose a Plan to repay the amount you fell behind on the mortgage and/or car note, along with a certain amount of what you owe on your other debts. You will need to begin paying your regular mortgage and vehicle payments as soon as you file. The filing of the case forces your mortgage company or car creditor to accept payments.
If you are facing foreclosure, lawsuit, repossession or wage garnishment, a Chapter 13 bankruptcy can rearrange your financial affairs allowing you to get back on your financial feet.
The concept is similar to debt consolidation, but it permits you to pay your unsecured debt (credit cards, medical bills, personal loans, etc.) without accruing interest or penalties (student loans are an exception) and without having to deal with those annoying calls from debt collectors. Under a typical Plan, you make monthly payments to a court-appointed Chapter 13 Trustee for three to five years. The amount of your monthly payment is determined by several factors such as the amount of debt you have, your ability to repay and the extent that you have assets. The Chapter 13 Trustee distributes the money to your creditors.

Chapter 13 law is very strong:
I. It stops a house foreclosure, allowing you to make up missed mortgage payments and keep your home.
II. It stops repossession, and in most instances allows you to recover a vehicle that has already been repossessed.
III. It stops interest and penalties from accruing on personal debt, including back TAXES (an exception to this are student loans).
IV. Depending on the value of your home, you may be able to strip/remove your second mortgage liens from your home, so long as it appraises for less than what is owed on your first mortgage.
V. It protects you from creditors be preventing them calling you and demanding payment or proceeding with lawsuits, judgments, or garnishment of your wages or financial accounts.
VI. It prevents continued damage to your credit report by stopping negative reporting. Your creditors need to report that your debts have been discharged upon completion of your Chapter 13 Plan.

CREDIT COUNSELING AND MONEY MANAGEMENT CLASSES
Within at least 6 months prior to filing for bankruptcy, you must speak with a credit counselor (or complete the course online). A Dallas foreclosure attorney at our firm will provide you with the necessary information to contact a court-accredited counseling provider. After filing you must also speak to a credit counselor regarding money management (also can be completed online). These courses are taken at your own expense and must be taken before a discharge will be issued.

QUALIFYING FOR CHAPTER 13
Individuals and married couples and certain business can consider chapter 13 as an option. Just as in Chapter 7 the court will look at a two-part test to determine if you qualify to file Chapter 13. However, unlike a Chapter 7, the two-part test will also help to determine the amount you will pay in monthly payments towards your Chapter 13 Plan
A. Actual Budget – To qualify, you must have enough disposable income to repay at least a portion of your debts back over a 36 month to 60 month period. To do so, you will have to show the Court that you have enough income to meet your repayment plan commitment, after taking out your secured debt payments (mortgage and/or car note and your reasonable and necessary expenses. Certain debts will be required to be paid in full, others may be able to be paid at a discounted compromise level. Your income can come from a variety of sources such as wages, self-employment income, liquidation of assets, alimony, child support, retirement or governmental assistance (some exceptions apply to unemployment compensation). The Court does require disclosure of all household income even if your spouse does not jointly file with you.
B. Means Test – The Court will look to the Median State Income for your household size. Next, the Court will compare your gross household income average for the past six months to the median state income. The monthly excess income (known as disposable income) will guide the Court in determining an allowable monthly Plan payment.

CHAPTER 13 PLAN
Our Dallas bankruptcy lawyers can assist in proposing a successful Chapter 13 Plan so long as you have the following: (1) stable and regular income; (2) disposable income, from which to make monthly Plan payments, as determined from the excess moneys available after paying for your reasonable and necessary living costs;
A Chapter 13 Plan allows you to catch up on your missed house and/or car payments. Because you are making monthly payments, you may be able to include entire car note(s), or small mortgage(s) or loan(s) into the Chapter 13 Plan. You are also able to pay any tax debt, child support or alimony, arrears, unsecured debt (credit cards, personal loans, medical bills, etc.) or any other debt through your Plan.
While in bankruptcy, in addition to the Plan payment, you are responsible for making regular mortgage payments, car loan payments, food, utilities and other reasonable and necessary monthly expenses.

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