Are rising bills and missed payments making it harder to keep up? According to recent studies, millions of Americans face delinquent debt each year, leaving many at risk of losing assets or damaging their credit long term. For Corpus Christi residents, taking no action often leads to more collection calls, lawsuits, and mounting interest. This is where working with a skilled bankruptcy lawyer becomes an important step toward regaining control. Filing under Chapter 7 or Chapter 13 can stop creditor actions, protect property, and give individuals the chance to restructure their finances.
This guide explains the differences between Chapter 7 and Chapter 13, how the filing process works, and the ways local residents can protect what matters most.
Understanding the Two Main Bankruptcy Options
When someone decides to file for bankruptcy relief in Texas, the first step is determining which type of bankruptcy fits their situation:
- Chapter 7 Bankruptcy:Often called liquidation bankruptcy, this option allows eligible debtors to discharge most unsecured debts, such as credit cards or medical bills. Non-exempt property may be sold to repay creditors, but Texas exemptions protect many essential assets like a primary residence, vehicle, and certain personal property. A Chapter 7 bankruptcy attorney can guide clients through the means test to confirm eligibility.
- Chapter 13 Bankruptcy:Sometimes referred to as reorganization bankruptcy, this option allows filers to repay debts through a court-approved repayment plan lasting three to five years. This is ideal for those with steady income who want to keep property that might otherwise be lost in a Chapter 7. A Chapter 13 bankruptcy attorney helps propose a plan that fits within the filer’s income and expenses while satisfying legal requirements.
The Process of Filing for Bankruptcy
Filing for bankruptcy is a structured process. A qualified bankruptcy lawyer helps clients move through each step efficiently:
- Initial Consultation:Review of financial documents, debts, and income sources to determine the appropriate chapter.
- Credit Counseling:Completion of a required credit counseling session before filing.
- Petition Filing:Submission of all schedules and statements to the bankruptcy court.
- Automatic Stay:Once filed, most creditor collection efforts must stop.
- Meeting of Creditors:Attendance at a brief meeting where the trustee may ask questions.
- Discharge or Plan Completion:In Chapter 7, qualifying debts are discharged after the process concludes. In Chapter 13, debts are discharged after successful completion of the repayment plan.
Protecting Property Through Bankruptcy
Texas law provides generous exemptions that allow many filers to keep their home, car, and household goods. A bankruptcy lawyer ensures exemptions are applied correctly, helping protect as many assets as possible.
Taking the Next Step Toward Relief
Wondering which option will give you the best chance to rebuild? Attorney Joel Gonzalez at the Law Office of Joel Gonzalez focuses exclusively on helping individuals file for Chapter 7 and Chapter 13 bankruptcy in Corpus Christi. By carefully reviewing each case, he helps clients protect property, stop creditor harassment, and regain financial control through the right legal process.
To schedule a consultation and discuss your best path forward, contact the Law Office of Joel Gonzalez today.
