Bankruptcy | boltonlegal.com

Bankruptcy

Texas Bankruptcy Information

We can help you. Contact our Huntsville, Conroe, or The Woodlands office at 936-435-1908 today, or Call For Our Sugar Land and Stafford Office at 281-723-2791

Filing bankruptcy is often a decision made while under financial stress. While relief is in sight, many people feel guilty about taking what appears to be a drastic move. If you do decide that bankruptcy is a viable option for you, then know, too, that Texas is one of the best states in which to file bankruptcy! At the law office of Andrew J. Bolton, we provide compassionate representation in helping our clients get that fresh start. Many find that once their bankruptcy is on file, their stress level immediately goes down. They are no longer harassed by creditors, and they can rest more easily, instead of constantly waiting for the other shoe to drop. Moreover, we can save homes by stopping the foreclosure process.

Experience and Knowledge in Bankruptcy Filings

We provide active, competent representation coupled with a thorough knowledge of Texas exemptions, and the 2005 bankruptcy law changes regarding Chapter 7 Bankruptcy and Chapter 13 Bankruptcy filings. We also understand that bankruptcy is not always the result of financial irresponsibility. Many clients come to the law office of Andrew J. Bolton, Esq. following a divorce, medical emergency, or job loss. But even if you simply have too many debts which have gotten away from you, know that you may rely on us to be both understanding and compassionate to your situation. Our job is to help you file for bankruptcy - it is not to judge you.

Addressing Misconceptions About Bankruptcy

Misconceptions abound largely because of the new law that became effective in October of 2005. Leading up to those new laws, attorneys were taking to the airwaves, imploring prospective clients to come to their office and file while they still could. While the laws did change and currently make the bankruptcy process somewhat more complex, the adverstisements gave the false impression that bankruptcy is now impossible for many people. This is untrue. The new bankruptcy law still offers relief to many people who find themselves simply overwhelmed by their debts.

Many bankruptcy client are surprised to find that they usually are able to keep their home and vehicles. Although you will still have to continue paying for those assets in order to keep them, we may be able to reduce automobile payments, and are certainly able to stop repossession and foreclosure actions through a Chapter 13 debt reorganization. In this proceess, we can give you up to 5 years to "catch up" on your payments for such collateralized or "secured" loans.

Bankruptcy When "Loan Workouts" Don’t Work

Currently, many mortgage holders offer "loan workouts" for debtors who are in arrears on their mortgages. Unfortunately, it is difficult to separate a mortgage holder who genuinely desires to assist the debtor in catching up on a loan from one who is simply trying to sneak a foreclosure sale past the debtor before he or she knows what’s really happening.

If you are in arrears on your mortgage, and have received a notice of foreclosure, do not accept any unwritten promise to "stop the sale" or otherwise refrain from foreclosure. I have had clients who came to me saying that the loan modification department of their lender promises to let them know "next week" if the modification is approved, yet the foreclosure sale is noticed to occur the very next day! Once, the foreclosure sale occurs, it does little good to say "hey, but you promised me that you would get back to me on the loan modification." Chapter 13 bankruptcy can be viewed as a "forced modification" of your loan in your favor which gives you as much as five years to catch up on the arrears.

Contact Us

To get more information or to schedule an appointment, please contact us in in Huntsville, Conroe, or The Woodlands at 936-435-1908. Call our Sugar Land or Stafford office at 281-723-2791

Inflation & Bankruptcy

Currently there are many news stories about inflation in the United States as well as abroad. An individual who is deeply indebted might ask: "What effect will inflation have on my bankruptcy?" If you are in a Chapter 7 bankruptcy, the answer is "likely none." However, in a time of rapidly increasing wages (definitely not here yet) which often accompanies inflation, then wage inflation may affect your eligibility under Section 707(b) of the Bankruptcy Code. In other words, in a high inflation environment you might be considered "too rich" to file a Chapter 7! But this is unlikely in most inflation scenarios. In a Chapter 13 payout plan, the effect of inflation does matter. In a Chapter 13, the bankruptcy code imposes a "best interests of creditors test" commonly referred to as the "more than test." What this means is that your payout to unsecured (noncollateralized) creditors in a Chapter 13 plan must be "more than" what they would have received had you filed a Chapter 7 liquidation. In other words, assuming that your estate were liquidated in a Chapter 7, and each creditor were to receive ten cents on each dollar owed them, then, in a Chapter 13, you must pay at last that much plus a penny, to meet the best interests of creditors test. Inflation affects this calculation by increasing the fair market value (in dollar terms) of your non-exempt property. In simpler terms, if you had non-exempt property worth $10,000.00, then you must pay $10,000.01 into your Chapter 13 bankruptcy. If that property is increasing in value by inflation–or by hyperinflation–then that $10,000.00 fair market value might soon increase to $15,000.00, $20,000.00, or more, in a very short time.

How Do I Save My Home With Chapter 13 Bankruptcy?

You have received demand letters from your mortgage company informing you that you are months late on your mortgage, or perhaps, that you owe additional sums to your escrow account. Finally, you have received a notice that your whole loan balance has been "accelerated," or worse, you receive a "Notice Of Foreclosure" or "Substitute Trustee's Sale." You need to act promptly, the time for delay is over. In many cases, your home can be saved. First, determine why you got behind in the payments. Was it a temporary expense that put you behind? Was is a change of your employment? Chapter 13 Bankruptcy will allow you as many as 5 years to catch up on your mortgage arrears and save your home. In Chapter 13, you will create a "plan or reorganization" or "plan" which constitutes a proposal concerning how you plan to manage your debts and cure the arrears. In the plan, you show the Bankruptcy Court how you will pay your underlying monthly mortgage note, your household expenses, your car notes, and perhaps lay aside a little for emergencies. Any remaining monthly income will be used to catch up on the back mortgage payments. If there is any money after making these catch up payments, then that money will go to pay "unsecured debts," usually credit card and medical bills.

In sum, a simple test to determine whether a Chapter 13 can help save the home is this: Ask yourself: "Can I make my current mortgage payments and catch up on the arrearages within 60 months?" If the answer is "yes," then please allow us to assist you. Chapter 13 can save your home!


Huntsville Office	Woodlands Office
242 I-45 S. Huntsville, TX 77340 [Exit 115] Map & Directions	21 Waterway Ave., Suite 300 The Woodlands, TX 77380 Map & Directions
Sugarland / Stafford
Located on Southwest Freeway 59 in the 5 story red brick building. Between Williams Trace and Dairy Ashford. Reach this office at: 281.723.2791