Bankruptcy

Fort Worth Bankruptcy Attorney

Helping People Embark on a New Financial Path in Texas

The prices of many consumer products outpace wage gains and student loans burden about 70% of graduates. Unexpected medical treatments can make it hard for many in the Fort Worth community to pay monthly debt obligations. Using credit cards to cover bills only postpones the problem and can increase the amount you owe in the long run.

If you struggle to pay your debt obligations, if creditors are threatening legal action, then you need guidance from our Fort Worth bankruptcy lawyers at the Law Offices of Mark M. Childress.

Understanding Bankruptcy Chapters

Bankruptcy law is codified in Title 11 of the United States Code. This section is called the U.S. Bankruptcy Code. The amount and type of debt, along with the property you need to protect, help determine which bankruptcy chapter is right for your situation.

Individuals and businesses have options for dealing with debt through six types of bankruptcy.

Chapter 7 Bankruptcy

Across the U.S., more individuals file under Chapter 7 than any other chapter. According to the American Bankruptcy Institute, about 60% of consumer (personal) bankruptcies file under what is often called liquidation bankruptcy (closer to 55% in Texas).

Nonexempt assets may be sold by the bankruptcy trustee, and the proceeds are used to pay creditors. Individuals and businesses can file under Chapter 7 if their income is below a certain limit.

Basic elements in a Fort Worth Chapter 7 bankruptcy include the following:

Individuals can keep exempt property.
Your current wages, retirement accounts, or government benefits may be used by the trustee to settle your debts.
Once allowable assets are sold and the proceeds used, any remaining eligible debt is discharged (which means erased).
Past-due alimony, child support, and taxes cannot be discharged.
Most student loans are also not discharged.

A business filing under Chapter 7 cannot claim any exempt property. The “everything must go” sales include inventory, equipment, furnishings, and fixtures owned by the business. Chapter 7 closes the business permanently.

Chapter 13 Bankruptcy

Anyone earning too much to qualify for Chapter 7 can restructure their debt through Chapter 13. This bankruptcy chapter is useful for those who want to protect assets that would otherwise be sold.

Basic elements in Chapter 13 bankruptcy in Fort Worth include the following:

Instead of liquidating assets to pay the debt, the debt is restructured.
A monthly repayment plan is developed to pay back part or all the debt.
The repayment plan usually lasts for three or five years.
Filers in Chapter 13 keep all their property.
After the payment plan has been successfully completed, any remaining eligible debt is discharged.

Chapter 13 does not offer a grace period. Missed or late payments carry consequences.

Chapter 11 Bankruptcy

Individuals can use Chapter 11, but this chapter is generally more relevant to businesses. Chapter 7 requires a business to sell all its assets and cease operations. Chapter 11 bankruptcy allows a business to stay open while repaying creditors. Chapter 11 works similarly to a more complicated Chapter 13. Assets are not sold; instead, the business and debts are reorganized.

Basic elements in Chapter 11 bankruptcy include the following:

There is no minimum income or maximum debt requirement.
The business must account for its assets and liabilities.
A proposed reorganization plan is presented to creditors for approval.
The plan can then be confirmed by the court.

Chapter 11 is complex and can be quite convoluted for a small business. In 2020, Subchapter V was added to the Chapter 11 bankruptcy code. Small businesses can use this less complex section of Chapter 11 to continue serving customers and clients while reorganizing their business.

Chapter 12 Bankruptcy

Fort Worth has a rich tradition in agriculture. There are more than 900,000 acres of agricultural land in the Fort Worth area, with over 800,000 acres planted and 80,000 used as pasture. Many families still support themselves through farming. Chapter 12 bankruptcy is designed specifically for “family farmers” and “family fishermen” who continue to earn a regular income but face financial hardship. Chapter 12 helps these farmers and fishermen restructure their debts and set up a payment plan.

Chapter 15 Bankruptcy

Our economy has become increasingly global over the last 50 years. Chapter 15, added to the U.S. Bankruptcy Code in 2005, addresses cross-border cases involving assets in multiple countries. Some bankruptcy cases involve foreign debtors or businesses with ties to more than one country. A foreign debtor with assets in more than one country may need Chapter 15 protections.

Chapter 9 Bankruptcy

Municipalities (cities, towns, counties, school districts) can file for bankruptcy through Chapter 9 bankruptcy. Towns and cities declaring bankruptcy are uncommon, but it does happen. From Stockton, CA to Prichard, AL, and up to Central Falls, RI, towns and other jurisdictions have filed for bankruptcy.

Legal Counsel for Fort Worth Bankruptcy Options

Bankruptcy is not a personal failing. Bankruptcy is an opportunity to reclaim your financial footing. While it might not be right for everyone, the various chapters available might hold the answer to relieving the immense pressure you feel. Debt does more than take a financial toll. The mental and emotional damage is just as devastating.

You owe it to yourself to learn whether bankruptcy is the release valve you need. Our attorneys at the Law Offices of March M. Childress can answer your questions, guiding you through the pros and cons in your unique circumstances.

FAQs

How does filing bankruptcy affect my credit score?

Bankruptcy usually causes a significant drop in your credit score. However, the impact lessens over time—especially if you resolve old debts and avoid new late payments. Many people find they can qualify for certain types of credit again within a few years if they work to rebuild credit after discharge.

Can bankruptcy stop wage garnishment in Texas?

In most cases, filing bankruptcy puts an immediate stop to wage garnishment through an automatic stay. This stay takes effect as soon as your bankruptcy case is filed and can give temporary relief from most creditor actions. Some debts, like child support or alimony, may not be affected by bankruptcy rules.

Will I lose my home if I file for bankruptcy?

Texas law gives strong homestead protections, which could allow you to keep your primary home if you file bankruptcy in Fort Worth. These protections depend on the amount of equity in your home and the bankruptcy chapter you file under. You should review your individual situation with an attorney who understands local rules.

Contact Our Bankruptcy Lawyer in Fort Worth Today

If you are struggling with overwhelming debt and need professional guidance, our Fort Worth bankruptcy lawyers are here to help. We understand that financial challenges can be very stressful and confusing, and we are dedicated to delivering compassionate, knowledgeable support every step of the way. Contact us today to request a consultation and learn how we can help you discuss your options, protect your assets, and take the first step toward a fresh financial start.

Contact us today to schedule a consultation. Call (817) 497-8148 to get started with our bankruptcy lawyer in Fort Worth.

Continue Reading Read Less

The Opinions That Matter Most

What Former Clients Have to Say

MOre Reviews

"My questions were heard and answered without having to ask twice."
Value a capable team with experienced staff. For the past 9 months, the folks at the Law Offices of Mark Childress handled my case with class and empathy. My questions were heard and answered without having to ask twice. I felt like I was kept in the loop and always briefed properly. As I move forward with other ventures I wouldn't be surprised if we crossed paths again. And hats off to Konner, THANK YOU!

- Cody C.
"Mark was there to answer every question, every phone call and did it in a way that I felt as if I were his only client."
I needed an attorney who would stand up for me and my child during a very hard time. Mark was there to answer every question, every phone call and did it in a way that I felt as if I were his only client. He was very knowledgeable not only about the law but about the opposing attorney and the judge. He prepared me well and we won our case. I would recommend Mark Childress to anyone who is fighting for custody or in need of child support.

- Kelley C.
"I highly recommend him and his staff. They are courteous, prompt and they care."
I called in inquiring about a divorce and how it all happens. I had 2 people call me back within an hour and in an hour maybe 2 I was talking with the lawyer. I highly recommend him and his staff. They are courteous, prompt and they care. Divorce is the hardest thing we will go through minus losing a kid and his team will be retained. He even called me back himself the next day to see how I was. Great service.

- Bobby N.
"This guy is amazing. In a matter of minutes, he accomplished what no other attorney could in 6 years."
This guy is amazing. In a matter of minutes, he accomplished what no other attorney could in 6 years. He had my case figured out in 1short conversation and had what he called "a convoluted mess" fixed. I'm pretty sure my ex felt like he'd been hit by a bus. My family is finally in tact and everyone is finally happy.

- Heather S.

Discover the Difference at Law Offices of Mark M. Childress, PLLC

Direct Access To Your Attorney

Our Attorneys personally handle each case themselves. You will have direct access to your attorney to be able to get the answers that you need.
Transparency
Honesty and transparency are critical in building trust with your attorney. You will always know what is going on with your case every step of the way.
Team Oriented

At our firm you're not just a case number, our staff will always know the status of your case and help to make your situation more manageable.
Personalized Approach
Our team understands that no two cases are the same. Your strategy will be tailored specifically to you and your family's goals.