We practice only consumer and small business
    bankruptcy. Several options are available depending on
    the situation.

    Chapter 7
    When the problem is simply more credit card and
    unsecured debt than can be repaid under the current
    budget, a Chapter 7 may be the right option. A Chapter 7
    is officially called a Liquidation. It is designed to
    “discharge” ( best thought of as a forgiveness) debt while
    allowing a debtor to keep the house and car. Debt such as
    the house and car must be current. Neither the Court nor
    the creditors can take these exempt assets as long as
    payments to the lienholders are paid.  It is important to
    properly prepare a budget and review issues of transfers
    and fraud prior to filing a Chapter 7. If filed incorrectly,
    a case might be dismissed,  have the discharge blocked,
    or in some cases criminal charges investigated.


    Chapter 13
    In other cases, a reorganization is in order. A bankruptcy
    reorganization is used to pay debts that cannot be
    discharged in a chapter 7, such as many IRS taxes. Also,
    it is used to give debtors time and ability to catch up
    arrears on secured debts such as cars and homes. This
    bankruptcy calls for monthly payments to a court-
    appointed Trustee which are then distributed to creditors.
    The Plan of repayment can extend payouts, lower interest
    rates, and even lower the total amount to be paid. A
    Chapter 13 Plan may last from 36 to 60 months.
    Unsecured debt may be paid as little as 1% or as much as
    100%.

    Many small businesses need help with bank loans,
    equipment loans, taxes, and vendor. Oftentime, a Chapter
    13 reorganization can give the business enough breathing
    room to survive. Business Chapter 13 cases can be
    complicated. They need the attention of an experienced
    attorney.


    Chapter 12
    Family Farmers and Family Fishermen (which
    encompasses shrimp fishing) may file for reorganization
    under Chapter 12. Mr. Smith has filed more Chapter 12
    cases than any other attorney in the Southern District of
    Texas.


    Chapter 11
    This is a Reorganization for both individuals and
    businesses that cannot fit into the limits or requirements
    of Chapter 12 and 13. Chapter 11 is designed for larger
    cases and can be more time-consuming and expensive
    than the other reorganizations.
JOHN E. SMITH&
ASSOCIATES,P.C.
Helping People With Debt
Since 1983
Bankruptcy
is all  we do.
TYPES OF BANKRUPTCIES
League City, Dickinson, Clear Lake, Pasadena, Pearland, LaPorte, Texas City, Channelview, Seabrook,
Katy, Sugarland, Fulshear, Waller, Friendswood, Hempstead, College Station, Pearland,
Friendswood,Bryan, and the entire Southern District of Texas.