Life is unpredictable, and so is financial stability. Sometimes people are completely unable to pay off their debts, in which case, they need the help of professional bankruptcy lawyers like Dorothy Lawrence. Dorothy is among America’s most talented bankruptcy attorneys. She and her firm, the Dorothy Butler Law Firm, specializes in dealing with all kinds of bankruptcy issues, apart from myriads of other issues. She has remained 7 times Texas Super Lawyers Rising Star for the area of bankruptcy. When most people think of bankruptcy, they imagine a very scary situation. They almost equate it with the end of their lives. However, Dorothy believes you can not only get out of bankruptcy but actually thrive afterward. She and her firm will look into your situation and guide you towards a bankruptcy plan that works the best for you.
Dorothy believes everyone needs to understand the basics of bankruptcy. One of the things that people often fail to understand is the difference between Chapter 7 and Chapter 13 bankruptcy. A Chapter 7 bankruptcy eliminates all unsecured debts, while a Chapter 13 bankruptcy consolidates your debts into a monthly plan payment. Some individuals may pay 0% of their unsecured debt back; others may pay 100% of it back in Chapter 13.
Dorothy works in Texas, where most people file a Chapter 7 bankruptcy unless they do not qualify for some reason. Some people go for chapter 13 as well because it allows them to pay their mortgage or car note arrears back over 3-5 years rather than paying in a lump sum. Dorothy believes that there are two reasons why some people go for chapter 13 bankruptcy relief:
- If their income is too high to qualify for Chapter 7
- They are behind on their mortgage and/or car payments and wish to save their home or car.
People are often confused about whether chapter 13 is good for them or chapter 7. Dorothy explains the difference in a very simple and beautiful way. She says:
“Chapter 7 is a short-term relationship while chapter 13 is a long-term, committed relationship with your bankruptcy attorney.”
Chapter 13 bankruptcy is a 3-5-year debt consolidation plan. That’s why it is a comparatively harder plan to complete, as you must keep making those monthly payments for many years. You will have to go through that attorney for everything for the next several years, including buying a new car or keeping your tax refund. Remember that if your income situation changes, it can affect your ability to make those payments. Chapter 7 bankruptcy, on the other hand, lasts for a few months. So, Chapter 7 is the easier of the two types if you qualify for it. Dorothy says that many people find out they don’t qualify for chapter 7 and do not move forward with filing because of how difficult Chapter 13 can be.
Dorothy would like to remind you that the type of bankruptcy to file for, which is good for you, entirely depends upon your state. In Texas, where she runs her firm, debtors can protect so many assets that it may not relate to what chapter they choose to file. However, if someone owns a second home, has more vehicles than licensed drivers in the household, or has other financial assets, it may make more sense to file for Chapter 13 bankruptcy and keep those assets. That’s why it is extremely important to have a talented bankruptcy attorney on your side.
One of the things you need to remember is that bankruptcy filings will stay on your credit report. In the case of a Chapter 7 bankruptcy filing, it remains on your credit report for 10 years after filing. In comparison, a Chapter 13 bankruptcy filing stays on your credit report for 7 years after filing.
Dorothy comes across both Chapter 7 and Chapter 13 cases of bankruptcy. However, in Texas, she typically deals with Chapter 7 cases more. She says that Chapter 13 doesn’t tend to be as common because it requires a commitment to continue making payments on your debts. If you aren’t facing foreclosure or repossession, you may choose to work out repayment plans individually with your creditors. This is also something that Dorothy Butler Law Firm assists debtors with. Financial stability may be unpredictable sometimes, but professional bankruptcy attorneys like Dorothy Lawrence are always there to help.
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