Legal Question in Bankruptcy in Texas

Re: Chapter 13 and Chapter 7 Bankruptcy laws

The main difference is Chapter 13 is a reorginization of your debts, which you will still pay off. Chapter 7 cancels some debts. There are a lot of other differences like how they affect your credit rating, length of time between filing, etc. It depends on a lot of issues which is better for you. They are not done at the same time, but sometimes a Ch. 13 can be converted to a Ch. 7.

Bankruptcy is a federal action, but in AR, you can choose certain remedies that are different in the state law and the federal Bankruptcy Code. I don't know how it is done in TX.

Re: Chapter 13 and Chapter 7 Bankruptcy laws

Chapter 7 is a "fresh start" while chapter 13 is a "reorganization". If you are in AR, why are you wondering about TX application.

I suggest that you come into the office and lets talk about it. It is far to involved to give a class on here. Bottom line is that it depends on your overall situation. We cannot know that without a good question and answer session.

Give me a call and lets talk.

Re: Chapter 13 and Chapter 7 Bankruptcy laws

You can check my website at www.riverasmith.com for a description of each remedy. You file either Chapter 13 or 7 -- they are not used jointly unless the 13 is not working out and it is converted to a 7.