FREQUENTLY ASKED QUESTIONS
Are you overwhelmed with debt? Are you facing a serious financial crisis? If so, there are various debt relief solutions available to assist you. However, these options and the numerous details may be difficult to understand and overwhelming. To help alleviate your confusion, I have provided some of the most frequently asked questions on this page.
These questions and answers are not a substitute for actual legal advice. If you have legal concerns or questions regarding your financial situation and need help moving forward, please contact the Law Office of Nicholas R. Westbrook at 713-893-6204. You can also send me an
Email or complete the
Free Case Evaluation. The road to financial freedom starts here.
What does "Bankruptcy" mean?
In most cases, Bankruptcy results when a person incurs more debt than his or her income and other assets can cover. In these unfortunate situations, the debtor can file a Petition with a Federal Bankruptcy Court, which acknowledges that he or she owes more money than can be paid off in the expected timeframe. Most consumers go through Chapter 7 Bankruptcy or
Chapter 13 Bankruptcyto resolve their financial problems.
In general, Chapter 7 Bankruptcy allows debtors to liquidate some of their property and eliminate all unsecured debt, while
Chapter 13 Bankruptcy allows debtors to reorganize their debts over time.
For more information about relieving your debt through Bankruptcy, please contact the Law Office of Nicholas R. Westbrook at 713-893-6204. As an experienced Houston Bankruptcy attorney, I can answer your questions and put you back on the road to financial freedom. You can also send an
Email or complete the
Free Case Evaluation. Stop letting debt ruin your life.
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Do I have any other options besides Bankruptcy?
Yes. If your debt or expenses have reached a point where you can't catch up over time, Bankruptcy is typically the best option. However, there are debt consolidation and debt settlement programs that may assist you in certain situations. The Law Office of Nicholas R. Westbrook can help. I offer a FREE consultation to review your situation and determine if Bankruptcy is right for you. If not, I can recommend several alternatives. To learn more, please contact my office at
713-893-6204. You can also send an
Email or complete the
Free Case Evaluation. The road to financial freedom starts here.
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What is Chapter 7 Bankruptcy?
Chapter 7 Bankruptcy
is a debt relief solution that lets you erase certain debts in a quick amount of time. Chapter 7 is also known as a "straight bankruptcy."
When you file for Chapter 7, you must turn over all non-exempt property (which is typically nothing) to a Bankruptcy Trustee who then converts the property into cash for distribution to your creditors. Within four to six months after filing, you will receive a "Discharge," which eliminates your unsecured debts, such as credit cards, medical bills, and private loans.
In most cases, you will not lose essential property during a Chapter 7 proceeding, as there are certain property exemptions. Many people choose this debt relief solution, as it provides a quick way to erase debts. To learn more about
Chapter 7 Bankruptcy and the type of debts that can be eliminated, please call my office at
713-893-6204. You can also send an
Email or complete the
Free Case Evaluation. I would be happy to explain the different types of Bankruptcy and how my office can assist you. The road to financial freedom starts here.
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Do the new Bankruptcy laws make it more difficult to file for Chapter 7?
Not really. In 2005, Congress passed new laws regarding Chapter 7 eligibility. Before that time, everybody that wanted to file had the right to do so. Today, debtors must comply with the "Means Test," which analyzes your debts, income, and ability to pay back your creditors. If you lack the "means" to pay off your debts over a 3 to 5 year period, then you will likely
qualify for Chapter 7, despite the additional hoops to jump through under the new laws.
Despite the strict Bankruptcy laws, most of my clients who have requested a Chapter 7 Bankruptcy in the past several years have qualified. If you don't qualify for Chapter 7, you can still utilize the significant debt relief under
Chapter 13. You can learn more about the new laws and other important Bankruptcy issues by scheduling a FREE consultation with my office. Please call the Law Office of Nicholas R. Westbrook today at
713-893-6204. You can also send an
Emailor complete the
Free Case Evaluation. Stop letting debt ruin your life.
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When Do People Usually File for Chapter 7 Bankruptcy?
The majority of my clients who file for Chapter 7 Bankruptcy do so because of reduced income, recent unemployment, unpaid medical bills, overextended credit, and other unexpected expenses (i.e., death in the family, personal injury, etc.). Sudden illness and related medical bills cause more than half of the Chapter 7 filings each year. Medical bankruptcies affect over 2 million Americans annually.
If you are having trouble paying back your medical bills, credit cards, or similar bills, please contact the Law Office of Nicholas R. Westbrook at 713-893-6204. As a Houston Bankruptcy attorney, I can review your unique situation and determine whether
Chapter 7 Bankruptcy is your best debt relief solution. You can also send an
Email or complete the
Free Case Evaluation. The road to financial freedom starts here.
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What is Chapter 13 Bankruptcy?
Chapter 13 Bankruptcy
is a debt relief solution that lets you consolidate and pay your debts over a 3 to 5 year re-payment plan, depending on your debts and income. This type of Bankruptcy is also known as a "Reorganization Bankruptcy." If you qualify for a Chapter 13, you must submit a monthly payment to a Bankruptcy Trustee who will then disperse your payment to the various creditors in your case.
Chapter 13 Bankruptcy is the best option when facing
home foreclosure or
vehicle repossession. Unlike
Chapter 7 Bankruptcy,
Chapter 13 allows you to maintain possession of your non-exempt property during and after the Bankruptcy (including additional cars, recreational vehicles, rental property, etc). For more information regarding this significant debt relief solution, pleaes contact the Law Office of Nicholas R. Westbrook at
713-893-6204. You can also send an
Email or complete the
Free Case Evaluation. I'm here to help! Stop letting debt ruin your life.
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Can I save my house from Foreclosure by filing for Bankruptcy?
In most cases, the answer is "Yes." But it depends on your situation. Filing for Chapter 13 Bankruptcy can usually save your home from
foreclosure and allow you to maintain possession, provided you initiate the Bankruptcy proceeding before the scheduled foreclosure sale (which always occur the first Tuesday of each month). You must
qualify for Chapter 13 and you must file the case before the foreclosure sale.
Chapter 13 Bankruptcy can save your home, provided that you comply with all the terms and conditions of your Chapter 13 plan. Unfortunately, many homeowners wait too long to file for Bankruptcy, and ultimately lose their home due to procrastination. Also, many of our Chapter 13 clients wait and wait to be approved for loan modifications. Most lenders will tell you to stop making payments and submit numerous documents during this process. In most cases, the mortgage company will NOT approve the modification -- which means significant arrears and eventual foreclosure proceedings. This happens all the time.
DO NOT rely on your mortgage company to do the right thing. In most cases, they will ignore your request and lead you down a road of no return.
If you are behind on your mortgage, attempting to do a loan modification, or you have received a foreclosure notice, it is critical that you contact my office at
713-893-6204 and schedule a FREE consultation. You can also send an
Email or complete the
Free Case Evaluation. I'm here to help. My goal is to save your home and get you debt free over time. The road to financial freedom starts here.
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Can I save my car from Repossession by filing for Bankruptcy?
Yes - if you act in time. In Texas, car lenders may repossess your vehicle if you are behind on payments -- even if the deficiency just occurred. If your lender is threatening to repossess your vehicle, you can file Chapter 13 Bankruptcy and
stop all repossession attempts. If the lender's agent has already taken the vehicle, you must file
for Chapter 13 Bankruptcy within
10 DAYS
after the repossession to avoid a sale of the vehicle at auction.
If you want to save your vehicle, the Law Office of Nicholas R. Westbrook can help you file for Chapter 13 Bankruptcy where you can pay for the vehicle over a 3 to 5 year re-payment plan. If your car has already been repossessed and sold at auction, we can help you erase the unsecured debt by
filing for Chapter 7 Bankruptcy. You can learn more about repossession and the applicable laws by contacting me today. To get immediate answers to your questions from a qualified and experienced Houston Bankruptcy lawyer, call my today at
713-893-6204. You can also send an
Email or complete the
Free Case Evaluation. Stop letting debt ruin your life. We can help!
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If I file for Bankruptcy on my own, will my spouse's credit be affected?
It depends on whether you share the debt with your spouse. For example, if you and your spouse co-signed any loans or other debts, your creditors will hold both of you accountable for the debt. In other words, if you file for Bankruptcy and try to discharge a mutual debt, your spouse's credit report will reflect this action. Moreover, in a Chapter 7 Bankruptcy, your spouse would still be liable for the debt. In this situation, it is better to file for Bankruptcy jointly to protect both of you. If the debt is entirely in your name, then an individual Bankruptcy is more beneficial, as you can eliminate your bad debt, and your spouse's credit will not be affected. To learn more about
Bankruptcy relief, please contact the Law Office of Nicholas R. Westbrook at
713-893-6204. I can meet with you in person to determine if it's more beneficial for you to file an individual or joint Bankruptcy case, depending on your unique situation. You can also send an
Email or complete the
Free Case Evaluation. The road to financial freedom starts here.
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Will Bankruptcy erase my student loans?
The answer is almost always "No." The law has dramatically changed over the years regarding this issue. In most cases, you will be responsible for the student loans -- or any loan taken out for an "educational purpose." In extremely limited circumstances, you can petition the Court to discharge the debts (such as long term disability that prohibits you from paying the debt back at any point). In Chapter 13, the student loans will be treated like your other unsecured debts and paid a percentage over the course of your case (the percentage can range between 1% and 100% depending on your income). In
Chapter 7, you will be liable for the loans once the case is discharged and concluded (which usually occurs between 4 and 6 months after filing). To learn more about student loans and other debts, please call the Law Office of Nicholas R. Westbrook at
713-893-6204. You can also send an
Email or complete the
Free Case Evaluation. Stop letting debt ruin your life.
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If I filed for Bankruptcy several years ago, can I file again?
Yes -- but there are several things to consider before filing again. There is a huge misconception that you can only file once. This isn't true at all. You can actually file multiple times. The Bankruptcy Code allows you to file for Chapter 7 Bankruptcy up to three times. There is no restriction on
Chapter 13 Bankruptcy filings. In either case, you must wait a certain period of time between filings. The time restrictions on subsequent filings are as follows:
- 8 years between Chapter 7 Bankruptcy filings
- 2 years between Chapter 13 Bankruptcy filings
- 4 years between a Chapter 7 Bankruptcy filing and a Chapter 13 Bankruptcy filing
If you have filed for Bankruptcy in the past and want to file again, it is critical to meet with an experienced Bankruptcy attorney to review your situation and determine your options. My office can help with this. I have assisted numerous clients with subsequent filings. To learn more, please call the Law Office of Nicholas R. Westbrook at 713-893-6204. You can also send an
Email or complete the
Free Case Evaluation. Stop letting debt ruin your life.
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Will Bankruptcy stop creditor harrassment? What about lawsuits?
Yes. Once you file for Bankruptcy under Chapter 7 or
Chapter 13, all collection actions against you must cease, including harassing phone calls, using insulting or degrading language, threatening to publish your private information, and/or filing lawsuits against you. The Fair Debt Collection Practices Act makes it illegal for your creditors to continue such collection activities once you file the necessary Bankruptcy documents.
In both Chapter 7 and Chapter 13 Bankruptcies, you will receive an "automatic stay," which protects you from creditor harassment and allows you to lead a normal life again. The stay is one of the main reasons debtors chose to file for Bankruptcy, as it is the ultimate shield of protection in the most difficult of times. For more information about the automatic stay and Bankruptcy, please call the Law Office of Nicholas R. Westbrook at
713-893-6204. I can help you avoid future harassment with a quick and effective Bankruptcy filing. You can also send an
Email or complete the
Free Case Evaluation. The road to financial freedom starts here. Put an end to creditor harrassment. You deserve better!
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Do I have to complete credit counseling if I file for Bankruptcy?
Yes. Under the new Bankruptcy laws, you must complete an approved credit counseling course prior to filing for any type of Bankruptcy. You must also complete an approved debtor education course after you file. Our office has several inexpensive recommendations for both courses. To learn more about Bankruptcy relief and all requirements for filing, please contact the Law Office of Nicholas R. Westbrook at
713-893-6204. You can also send an
Email or complete the
Free Case Evaluation. Stop letting debt ruin your life.
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If I file for Bankruptcy, will everyone I know find out?
Not likely. AlthoughBankruptcy filings are public records, it takes some special research skills to determine if someone filed for Bankruptcy. So, under normal circumstances, most people will be unaware of your Bankruptcy. The filing will remain on your credit record for 10 years - so potential new lenders will obviously see the Bankruptcy filing. However, there is a huge misconception about Bankruptcy and this 10 year "penalty." Although the Bankruptcy stays with you for 10 years, most of our clients see a huge increase in their credit score in about 12 to 18 months after they are discharged from their Bankruptcy. There are numerous lenders out there willing to work with Americans -- just like you -- who went through Bankruptcy. You can learn more about the advantages of
Bankruptcy by calling my office today at
713-893-6204. You can also send an
Email or complete the
Free Case Evaluation. The road to financial freedom starts here.
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Will Bankruptcy cause my credit cards to be cancelled?
Possibly. Although a debtor may contact a credit card company and request to maintain a card after the Bankruptcy filing, some companies will cancel the card, even if you have a zero balance. This is especially true if you are discharging debt through
Chapter 7 Bankruptcy. Unfortunately,
consumer Bankruptcy does not allow you to keep any credit cards (even those with zero balaqnces), unless you reaffirm the debt through a separate agreement with the creditor. My Chapter 7 clients typically execute "Reaffirmation Agreements" which allows them to keep certain credit and property (such as furniture, appliances, and vehicles). To learn more about reaffirming your debt through Bankruptcy, please contact the Law Office of Nicholas R. Westbrook at
713-893-6204. As a Houston Bankruptcy attorney, I can help guide you through this complex legal process and pave the way for a new financial future. You can also send an
Email or complete the
Free Case Evaluation. Stop letting debt ruin your life.
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How long does it take to complete the Bankruptcy process?
It depends on the Bankruptcy you choose. In a Chapter 7 Bankruptcy, you will receive a discharge within 3 to 6 months after the Bankruptcy petition is filed. Once you are discharged, the debt will be erased and you can move on with your life. Choosing to file for
Bankruptcy under Chapter 13 will take between three to five years, depending on your expenses, debt and level of income. You will also be required to make a monthly payment through a Chapter 13 Plan.
There are numerous eligibility requirements for both Bankruptcy options. You can learn more about these different requirements by contacting the Law Office of Nicholas R. Westbrook at
713-893-6204 You can also send an
Email or complete the
Free Case Evaluation. I am here to help! Stop letting debt ruin your life.
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Is it a good idea to hire a debt consolidation company instead of filing for Bankruptcy?
Not if you want a fresh start quickly! Debt consolidation companies are typically based in different states and are not familiar with Texas law. Some companies offer empty promises for a significant amount of money and fail to provide any relief. Many consolidation companies have been investigated by the federal government for running scams and abusing numerous state and federal laws. Several groups have also been reported on Dateline NBC and 60 Minutes. Hiring one of these companies can be a HUGE MISTAKE. Even if the company is reputable, some creditors and lenders may refuse to participate in the debt consolidation process, which means you lose the money paid to the company and still have debt that needs to be discharged. These companies that do not participate can then seek legal action against you, including lawsuits, judgments, and wage garnishment. Bankruptcy is a legal and guaranteed way to resolve your debts -- depending on your situation. To learn more about your options and rights, please call my office today at 713-893-6204. You can also send an
Email or complete the
Free Case Evaluation. The road to financial freedom starts here.
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Can I obtain credit after I file for Bankruptcy?
Absolutely! Once you are discharged from Bankruptcy, you will begin receiving credit card promotions and other incentives to help re-build your credit. Some banks will offer you "secured" credit cards, where you deposit a certain amount of money (sometimes as little as $200) to guarantee future payments. Your credit will increase over time as you make timely payments and prove your ability to pay back your debts. If you are interested in buying a home in the future, the news is good. In most cases, you will be eligible for a mortgage loan with a reasonable interest rate approximately one year after your
Bankruptcy discharge. Your income level and down payment will be the focus, as opposed to your previous Bankruptcy filing. Although a
Chapter 7 Bankruptcy stays on your credit report for ten (10) years, it becomes less and less important as time passes. In fact, many of my clients have better credit scores shortly after the Bankruptcy than several months or years before the filing. Call me today to learn more. You can reach my office at
713-893-6204. You can also send an
Email or complete the
Free Case Evaluation. As a client-oritented Houston Bankruptcy lawyer, I can help you. The road to financial freedom starts here.
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How Much Does it Cost to File for Bankruptcy?
It depends. If you file for Chapter 7 Bankruptcy, the filing fee is $299. If you
file for Chapter 13 Bankruptcy, the filing fee is $274. There are additional legal fees involved before and after you file, which vary on the type of Bankrutpcy and your specific financial situation. We provide very flexible payment plans and offer discounts to government employees, school district employees, union members, and senior citizens. You can learn more about Bankruptcy and the fees involved by calling the Law Office of Nicholas R. Westbrook today at
713-893-6204. You can also send an
Email or complete the
Free Case Evaluation. Stop letting debt ruin your life.
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