Kerrville Bankruptcy Attorney Martin Seidler has practiced bankruptcy law for over 40 years. He is a former Chapter 7 panel Bankruptcy Trustee who administered thousands of Chapter 7 Bankruptcy cases during his tenure as a Chapter 7 Trustee for the United States Bankruptcy Court for the Western District of Texas. He represents debtors and creditors and handles complex bankruptcy litigation. He brings this extensive experience to aid those in need of financial counseling and if necessary, assists them in filing for bankruptcy or for reorganization.
Bankruptcy filing should always be a last resort. Based upon one’s financial situation it is sometimes better not to file for bankruptcy in order to protect assets which might be lost to a Chapter 7 trustee or to avoid objections to one’s Chapter 7 discharge due to transfers of property or payments to others. Debt collectors can be stopped by sending cease and desist letters. Credit card lawsuits can be defended and if appropriate counterclaims filed for abusive debt collection practices or for violations of the Fair Debt Collection Practices Act or the Texas Debt Collection Act. Such counterclaims often result in the original suit being dismissed and sometimes a recovery for the person being sued. Suits can be filed to avoid invalid home equity loans in order to “free up” cash flow.
The need for the filing of a Chapter 7 Bankruptcy may nevertheless be inevitable. The negative cash flow which many families face coupled with mounting credit card debt and harassment by creditors are strong indicators that bankruptcy relief may be necessary. Sometimes serious illness or business reversals result in sizeable debt which one cannot repay. This may create not only a financial hardship but psychological problems as well. The stress from financial problems can lead to marital problems and serious illness. A bankruptcy filing may “cure” some of these symptoms but it is important to note that bankruptcy will not cure what is often the underlying problem – negative cash flow.
In planning for ones’ financial future whether bankruptcy is anticipated or not, one must project anticipated income and expense. The key to a successful future is generating enough income to meet one’s cash needs. This can be accomplished by earning more and/or spending less – both difficult to do in today’s times. Living within one’s means is the answer.
Years ago the average Hill Country family of four filing for bankruptcy had $30,000 to $40,000 in credit card debt. Today that amount has more than doubled. Easy credit has led to an improved life style burdened by insurmountable debt. Over one million Americans file for bankruptcy each year to solve this problem. By filing for Bankruptcy they obtain a “fresh start” . They are no longer burdened by their unsecured debt. Harassment by debt collectors and creditors stops. Their credit rating increases as their debts are discharged and are no longer enforceable.
The filing of a bankruptcy case automatically invokes an injunction known as the automatic stay which prohibits further attempts to collect debts by creditors. Secured creditors still need to be paid if the debtor wishes to retain property secured by valid liens. In order to file for bankruptcy a short financial counseling course must first be taken and then bankruptcy schedules prepared. Once they are filed electronically with the Court, a meeting of creditors is scheduled to take place within the next 40 days. A bankruptcy trustee presides at this meeting and inquires of the debtor’s assets and liabilities. This meeting for residents of Kerr, Gillespie, Kendall and Kimble counties is held at the U.S. Bankruptcy Court, Room 333, located in the Old Post Office Building at 615 E. Houston St., San Antonio, Texas. (Across the street from the Alamo) Mr. Seidler’s main office is located in San Antonio as well.
Approximately 120 days after a bankruptcy case is filed the Court will issue a Discharge unless a creditor files a lawsuit in the bankruptcy court objecting to discharge or dischargeability of a particular debt. The bankruptcy discharge is a permanent injunction prohibiting creditors from contacting the bankruptcy debtor or from taking any action calculated to collect a pre-bankruptcy discharged debt.
If you need financial or bankruptcy advice contact Kerrville Bankruptcy Attorney Martin Seidler at 1-800-967-7317 for a free consultation.