Bankruptcy Attorneys in Amarillo, Texas

The financial curveballs in life have a way of blindsiding you and making it difficult to keep up with your finances, bills, and monthly expenses. At a time when you’re struggling with financial insecurity, there are solutions that can help ease your financial burden, and bankruptcy might be one of them.

If you're considering filing for bankruptcy, it is essential that you consult with an experienced small business bankruptcy attorney in Texas for advice and to assess your options.

At Swindell & Associates, PC, we are devoted to providing the experienced bankruptcy help and advice that individuals and business owners need. We can talk about your personal financial situation and help you understand what bankruptcy options are available and decide which bankruptcy chapter would be best for you. As your attorneys, we will work hard to safeguard your rights and assist you through each step of the Texas bankruptcy process.

Our Texas small business bankruptcy firm is based in Amarillo, Texas, and we represent clients throughout the Texas panhandle, including Borger, Pampa, Hereford, and Dumas. Contact us today to begin.

Understanding Bankruptcy

Bankruptcy is a tool designed to help individuals and businesses experiencing financial distress get debt relief. It is not anything to be ashamed of or to put off. When life's curveballs sideline you from meeting your financial obligations, filing for bankruptcy may be a viable option to remedy your financial situation and get the clean slate you’re looking for.

Your Bankruptcy Options

The most common bankruptcy options available for individuals and business owners in Texas include Chapter 7, Chapter 13, and Chapter 11.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy, also known as "liquidation" bankruptcy, is designed to help individuals and business owners eliminate most of their unsecured debts. Upon filing for Chapter 7 bankruptcy, the trustee (an independent contractor appointed to oversee your bankruptcy case) will gather, evaluate, and sell all your non-exempt assets.

In Texas, Chapter 7 debtors are allowed to "exempt" most assets. In fact, in most cases, you are allowed to retain or keep all of your assets.

You are permitted to choose between Federal Bankruptcy Exemptions or Texas state exemptions. Which exemptions to use is often the most important decision prior to filing Chapter 7 bankruptcy.

Chapter 11 Bankruptcy

Chapter 11 bankruptcy, or "reorganization" bankruptcy, is designed to provide business owners with sufficient time to reorganize their business operations, affairs, assets, and eventually repay their debt.

In a Chapter 11 bankruptcy case, the debtor (usually a business owner or business entity) will propose a repayment plan to pay back creditors while keeping the business afloat. Before the repayment plan can be confirmed, it must be approved by a Texas bankruptcy court and the creditors. Filing for Chapter 11 in Texas is often considered costly and time-consuming.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy, also known as "wage earner's" bankruptcy, is designed to help individuals who earn a reasonable income but are overwhelmed by debt. Under Chapter 13, the individual will be given a structured payment plan to repay the debt they owe.

Thankfully, Chapter 13 allows you to restructure your debt and retain your assets, including your home and vehicle, if you are behind on your monthly payments. It can also allow you to pay back unpaid tax debt.

This repayment plan will be structured to be completed within three to five years. With this, you can repay part or all of your debt using your future earnings. It should be noted that Chapter 13 bankruptcy is only available to Texas residents with a "regular source of income", but that income can be in the form of disability or retirement benefits.

Deciding Which Bankruptcy Type Is Right for You

If you're considering filing for bankruptcy here in Texas, understanding the bankruptcy option that is right for you is crucial. Your assets, income, or type of business will determine the right bankruptcy chapter that best suits your financial situation. Here are some important things to note:

• Chapter 7 wipes out most of your general unsecured debt, Chapter 11 is a business reorganization plan, and Chapter 13 requires you to pay back part or all of your debts.

• In a Chapter 7 filing, you can keep all of your exempt assets, while any non-exempt assets will be sold. Conversely, under Chapter 13 and Chapter 11, none of your assets will be sold.

• Chapter 13 is reserved for individuals who have a regular source of income, while filing for Chapter 7 requires you to pass the bankruptcy means test.

• Chapter 11 and Chapter 13 require proposing a payment plan to repay your creditors. In contrast, Chapter 7 doesn't require a repayment plan.

• A trustee will be appointed to oversee your Chapter 7 or Chapter 13 case. However, this is optional when filing for Chapter 11.

• Chapter 7, Chapter 11, and Chapter 13 bankruptcies will have an impact on your credit report. Filing for any of these bankruptcy chapters can help rebuild your credit score gradually over time.

Every bankruptcy case is unique. To make sure that you are making informed decisions, you should consult with an experienced bankruptcy attorney to help review your case and examine your financial situation.

Choose an Experienced Bankruptcy Attorney

Texas residents frequently file for bankruptcy. Texas had 35,069 business and non-business bankruptcies filed last year, according to the American Bankruptcy Institute. However, those customers didn’t have to endure it alone, and neither do you. If you are considering filing for bankruptcy, the wise decision is to speak with an experienced small business bankruptcy attorney in Texas.

We have the skill to counsel and guide you through complex bankruptcy proceedings. If you become our client, we will review your unique case, explain all of the possibilities, and help you make the right choice regarding which type of bankruptcy is best for you. We can also assist in creating a solution to preserve your assets and plan for a more positive future.