1. Fresh Start
The following information is not meant to replace the advice and guidance of a licensed attorney:

Are you having difficulty making your monthly payments?
Are you losing sleep over your debts?
Is your financial situation causing stress in any of your relationships?

Congress passed the bankruptcy laws to help you. Normally you get to keep everything you have. No one really wants to file bankruptcy. Most people use it as their last option.

Schedule a free consultation with the Law Office of Weldon R. Grisham to explore whether bankruptcy is warranted in your individual situation.

Remember, this is presented as general information only. If you feel you need legal advice, please contact the Law Office of Weldon Grisham at 817.390.0065 to arrange for a free consultation.

2. How to File Bankruptcy
The following information is not meant to replace the advice and guidance of a licensed attorney:

Your attorney will review your financial situation and advise you whether it makes sense to file and if so, which bankruptcy type is appropriate. Bankruptcies are filed in the U.S. Bankruptcy Court for your area. Even though bankruptcy laws are federal, there are state laws that affect you as well. Bankruptcy fees are $209 for Chapter 7 and $194 for Chapter 13, plus applicable attorney fees.

Your attorney and the bankruptcy court will need for you to complete schedules listing all your creditors, property and assets. A Statement of Affairs gives the court the essential information about your financial status.

A meeting of creditors is held 60 days after a Chapter 7 is filed and 45 days after a Chapter 13 is filed. Normally, this is just a meeting with your trustee. Your creditors usually do not appear, but they conduct their business through correspondence with your attorney's office.

Remember, this is presented as general information only. If you feel you need legal advice, please contact the Law Office of Weldon Grisham at 817.390.0065 to arrange for a free consultation.

3. Bankruptcy Claims & Debts
The following information is not meant to replace the advice and guidance of a licensed attorney:

Many people refer to Chapter 7 bankruptcy as "bankruptcy" and Chapter 13 bankruptcy as "reorganization." Chapter 7 bankruptcy will discharge or eliminate your unsecured creditors. The issue, then, is: what is an unsecured creditor?

Examples are: charges on your Visa, Mastercard, Discover, and American Express. Also, charges with department stores, such as clothes and small items. If you charged something like a washing machine on a department store credit cards in the last 5 years, you would have to pay them some amount to keep the washing machine. Chapter 7 does not discharge student loans, certain IRS debts and child support obligations.

Remember, this is presented as general information only. If you feel you need legal advice, please contact the Law Office of Weldon Grisham at 817.390.0065 to arrange for a free consultation.

4. How to Retain a Bankruptcy Attorney
The following information is not meant to replace the advice and guidance of a licensed attorney:

You should choose an attorney who limits his practice to bankruptcy. How do you find such an attorney? Referral from friends, family, or non-bankruptcy attorneys are some sources. The Yellow Pages and television are also good sources. You should schedule a free consultation with the attorney of your choice. The initial consultation, or interview, cannot be conducted over the telephone. Bankruptcy is too complicated for that. You should feel comfortable enough to ask questions during the consultation. When you leave the attorney's office, you should have enough information to make an informed decision whether you want to file bankruptcy. If you have further questions, you should feel comfortable enough to call the attorney after leaving his office.

We would like to take a moment to inform you about the free consultation at Weldon Grisham's office. If you'll bring your list of creditors with the approximate amount owed to each one, we'll sit down with you and discuss all your options in both a Chapter 7 and a Chapter 13 bankruptcy. At that time, we can tell you how much you will be charged and how we would like for you to pay. We always try to structure our fee and payment in such a way that, if you do decide to file bankruptcy, you'll be able to afford to do it.

All information is written down during this free consultation. You may take a copy of it home, where, in private, you can decide if bankruptcy is something you might want to do.

Remember, this is presented as general information only. If you feel you need legal advice, please contact the Law Office of Weldon Grisham at 817.390.0065 to arrange for a free consultation.

5. Chapter 7 Procedures
The following information is not meant to replace the advice and guidance of a licensed attorney:

If, after your free attorney consultation, you decide to file a Chapter 7 bankruptcy, you will be required to complete some worksheets in which you will list your creditors, assets, and monthly income and expenses. You will also be asked some general financial questions. From these worksheets, the Law Office of Weldon R. Grisham will prepare documents, called "schedules." Once these schedules are completed and you have reviewed and signed them, then both the schedules and the voluntary petition are filed with the Bankruptcy Clerk's office. The automatic stay of the Federal Bankruptcy Code immediately goes into effect, and your creditors will be notified by the Bankruptcy Clerk's office of your bankruptcy. Harassment by creditors will stop immediately.

Approximately 60 days after you file, you will be required to attend a meeting of your creditors, to put you at ease. Normally none of your creditors appear, and if they do, remember, you are represented by the Law Office of Weldon R. Grisham. The meeting, which will last just a few minutes, is conducted in a very professional manner, your trustee may have a few questions to ask you. The end of a Chapter 7 case will be approximately six months. The Federal Bankruptcy Judge will sign what is termed a discharge order, and all your dischargeable debts are discharged.

Remember, this is presented as general information only. If you feel you need legal advice, please contact the Law Office of Weldon Grisham at 817.390.0065 to arrange for a free consultation.

6. What is Bankruptcy?
The following information is not meant to replace the advice and guidance of a licensed attorney:

The basic concept behind bankruptcy is to discharge all you unsecured debt or to make your debt more manageable. There are two types of bankruptcy which we file: Chapter 7 and Chapter 13. Chapter 7 basically discharges, or eliminates, unsecured debt. Chapter 13 is reorganization which pays creditors over a period of three to five years with your unsecured creditors receiving payments ranging between 0 and 100 percent of the debt owed to them.

Remember, this is presented as general information only. If you feel you need legal advice, please contact the Law Office of Weldon Grisham at 817.390.0065 to arrange for a free consultation.

7. Non-Dischargeable Debts
The following information is not meant to replace the advice and guidance of a licensed attorney:

Although a Chapter 7 bankruptcy can discharge many of your debts, there are a number of debts that you will be required to pay. Large purchases, such as appliances, jewelry, furniture, etcetera; and cash advances made within 60 days of the bankruptcy filing, may be non-dischargeable. You may have to pay for these. Student loans are non-dischargeable; you have to repay your student loan. Child Support is not affected by a Chapter 7 bankruptcy. You will be required to pay this debt. Any debts that are due to fraudulent acts, as well as intentional torts, or wrongs, may have to be repaid.

Remember, this is presented as general information only. If you feel you need legal advice, please contact the Law Office of Weldon Grisham at 817.390.0065 to arrange for a free consultation.

8. Chapter 13 Bankruptcy
The following information is not meant to replace the advice and guidance of a licensed attorney:

The wage earner repayment plan is called a Chapter 13 reorganization. This type of bankruptcy is chosen by people who do not choose to file Chapter 7 or who have property to protect and a steady income from which they can make payments. This individual reorganization requires the petitioner to create a repayment plan that attempts to repay the creditors some percentage of what they are owed. With the assistance of your attorney, a plan will be confirmed by the court with the approval of your creditors. This normally requires approximately nine months to accomplish. Upon the successful completion of the plan, the bankruptcy is discharged. You need not worry about ever being contacted by creditors again.

Remember, this is presented as general information only. If you feel you need legal advice, please contact the Law Office of Weldon Grisham at 817.390.0065 to arrange for a free consultation.

9. Who Can File Chapter 13?
The following information is not meant to replace the advice and guidance of a licensed attorney:

If you are in debt that you cannot pay, a Chapter 13 bankruptcy may be an option for you to consider. With it, you are allowed to set up a payment plan to repay your debts. After filing a Chapter 13 bankruptcy, your creditors will be notified. This will stop all harassing phone calls and letters. You must be prepared to give your attorney a list of all your creditors, including account numbers and addresses; your budget which reflects your average monthly income and expenses; and your assets, such as your home, vehicles, furniture, checking accounts, savings accounts, clothing, etcetera; plus some general financial information regarding your present situation and your recent past.

A Chapter 13 trustee will review this information. You will be required to pay the Chapter 13 trustee a monthly fee. You must attend a seminar presented by the Chapter 13 trustee's office; this is a one-day seminar, generally from 8:30 a.m. to 4:30 p.m., normally held on Tuesdays but sometimes on Fridays. Your Chapter 13 payment plan can be as short as 36 months, three years, or as long as 60 months, five years, or for some period of time between 36 and 60 months. The attorney you hire will assist you in each of these procedures and make sure that you meet the requirements of the Chapter 13 trustee and the Federal Bankruptcy Court.

Remember, this is presented as general information only. If you feel you need legal advice, please contact the Law Office of Weldon Grisham at 817.390.0065 to arrange for a free consultation.

10. What Does it Cost to File?
The following information is not meant to replace the advice and guidance of a licensed attorney:

There is a court filing fee for filing bankruptcy, which is paid to the Federal Bankruptcy Clerk's office. At the present time, the fee is $209 for Chapter 7 and $194 for Chapter 13. Your attorney will alert you of any changes. During the free consultation in the Office of Weldon R. Grisham, all options under both Chapter 7 and Chapter 13 will be explained. You will also be informed of all charges and how you are to pay the law office. Fees and payment arrangements are structured so that if you choose to file bankruptcy, you can afford to do it!

Remember, this is presented as general information only. If you feel you need legal advice, please contact the Law Office of Weldon Grisham at 817.390.0065 to arrange for a free consultation.

11. Do Both Spouses File?
The following information is not meant to replace the advice and guidance of a licensed attorney:

In many marriages, the debt is totally in one spouse's name. In this case, only the spouse with the debt needs to file. Sometimes, one spouse has most of the debt and the other spouse has some debt but would rather pay that debt off than file bankruptcy. A person is not obligated on the debt unless that spouse signed the original application. If one spouse can just sign on the debt, that does not make that spouse obligated on the debt. Clients ask, "if my husband or wife files bankruptcy, how does that affect me?" First, your spouse's bankruptcy filing should not appear on your credit history. But, if your spouse files bankruptcy, and in the future you both jointly apply for credit, then the bankruptcy will be considered on the loan application.

Remember, this is presented as general information only. If you feel you need legal advice, please contact the Law Office of Weldon Grisham at 817.390.0065 to arrange for a free consultation.

12. Protecting your Home from Creditors
The following information is not meant to replace the advice and guidance of a licensed attorney:

One of the most frequently asked questions when faced with a bankruptcy is, "can I keep my home?"

While the home loan is technically a secured loan with the house itself serving as collateral, many states have passed laws that protect the house in a bankruptcy. This protection ranges from absolute, which is the case in Texas, to very little, to no protection in other states. Normally, if you can afford to make your house payments that come due in the future, you can keep your home.

Remember, this is presented as general information only. If you feel you need legal advice, please contact the Law Office of Weldon Grisham at 817.390.0065 to arrange for a free consultation.

13. Protecting your Vehicle from Creditors
The following information is not meant to replace the advice and guidance of a licensed attorney:

Congress instituted the bankruptcy laws to help people. Normally, your vehicles would be exempt, that is, you get to keep your vehicles. If you still owe money on your vehicles and you file Chapter 7, then you would simply just keep making the payments to the finance company. If you owe money on your vehicles and you file Chapter 13, then you may be able to pay the lesser of the amount of the debt or the value of the vehicle.

Remember, this is presented as general information only. If you feel you need legal advice, please contact the Law Office of Weldon Grisham at 817.390.0065 to arrange for a free consultation.

14. Secured vs. Unsecured Debts
The following information is not meant to replace the advice and guidance of a licensed attorney:

When you file for bankruptcy, you may have two types of debt: secured and unsecured.

Secured debt is debt which you obtained by pledging some tangible property of value as collateral. You could be purchasing a home from a mortgage company, which then holds the lien on your home until you repay your loan. A car, on which you are making payments, is another example of a secured loan.

Unsecured debt is any debt that has no collateral backing the loan. Credit card debt is a prime example, signature loans are another. Unsecured creditors can usually expect to get little, if anything, in a bankruptcy.

Remember, this is presented as general information only. If you feel you need legal advice, please contact the Law Office of Weldon Grisham at 817.390.0065 to arrange for a free consultation.

15. Fair Debt Collection Practices Act
The following information is not meant to replace the advice and guidance of a licensed attorney:

The Fair Debt Collection Practices Act outlines exactly what a collector can and cannot do to attempt to collect a debt. They can call you at work, but they cannot let anyone know the purpose of the call. They cannot tell the boss or secretary, or anyone, that they are a collection agency. If you tell them to quit calling you at work, they must stop. They can call you at home between the hours of 8 a.m. and 9 p.m., your time, not theirs. If they call at any other time, they have broken a federal law. They may send you letters asking you to repay them. They cannot send you a letter which can be construed as being from a collection agency. There can be no marking to indicate such information. They may file a lawsuit to attempt to get a judgment against you.

Remember, this is presented as general information only. If you feel you need legal advice, please contact the Law Office of Weldon Grisham at 817.390.0065 to arrange for a free consultation.

16. Protection under the FDCPA
The following information is not meant to replace the advice and guidance of a licensed attorney:

Because unsecured creditors have only one way to get their money back short of a lawsuit, they will harass you. They will call you relentlessly, send you mail, and generally try to make you wish you had never defaulted on their debt. But, they must obey the rules set out by the Fair Debt Collection Practices Act. They cannot tell anyone they are collecting a debt. They cannot even mark the outside of mail notices with any indication that they are attempting to collect a debt. If they call at work, tell them in writing, and by certified mail, to stop. After that, any call they make to your business is subject to sanctions. They must call between the hours of 8a.m. and 9p.m.your time.

Remember, this is presented as general information only. If you feel you need legal advice, please contact the Law Office of Weldon Grisham at 817.390.0065 to arrange for a free consultation.

17. What Happens to Guarantors/Co-signers?
The following information is not meant to replace the advice and guidance of a licensed attorney:

Cosigners are people who have lent their good name and credit to someone else so that they may get credit. This is a risk! The cosigner of a debt has no protection if the debtor files Chapter 7 bankruptcy. If the debtor files Chapter 13, the cosigner has some limited protection, but may still have some liability. If you're unsure as to your liability as a cosigner before or after the fact, get legal advice.

Remember, this is presented as general information only. If you feel you need legal advice, please contact the Law Office of Weldon Grisham at 817.390.0065 to arrange for a free consultation.

18. Bankruptcy and Your Credit Rating
The following information is not meant to replace the advice and guidance of a licensed attorney:

If you are considering bankruptcy, your credit rating is probably not spotless. Filing bankruptcy, while harmful to your credit rating, may not do any more damage than has already been done by a burden of unpaid debt. When you file, the bankruptcy will go on your record for a set amount of time, anywhere from seven to ten years. Rebuilding your credit is challenging. Many factors, such as your income, past bankruptcy payment history, and other credit you establish will affect your credit status after filing.

The Law Office of Weldon R. Grisham can suggest transactions to explore that can help you rebuild your credit.

Remember, this is presented as general information only. If you feel you need legal advice, please contact the Law Office of Weldon Grisham at 817.390.0065 to arrange for a free consultation.

19. Bankruptcy and Pending Lawsuits
The following information is not meant to replace the advice and guidance of a licensed attorney:

If you are currently involved in a lawsuit in which you stand to gain, you may have to use part, or even all of the cash award from your lawsuit to satisfy your creditors.

How a lawsuit is affected depends entirely on the respective reasons for the lawsuit and bankruptcy. For instance, a lawsuit undertaken to help pay for current and future medical expenses in a case of negligence will be affected in such a way that any monies gained in the lawsuit will go towards paying the medical costs. The bankruptcy will not excuse you from paying for your medical procedures. But, you may be allowed to discharge other debts not related to your medical needs, and your settlement may be exempt from many of those creditors.

This is a complex area of the law which requires the attention of an experienced attorney.

Remember, this is presented as general information only. If you feel you need legal advice, please contact the Law Office of Weldon Grisham at 817.390.0065 to arrange for a free consultation.

20. Bankruptcy Tax Issues
The following information is not meant to replace the advice and guidance of a licensed attorney:

Taxes in bankruptcy can be very complicated. Weldon R. Grisham suggests that if you have a tax problem, schedule a free consultation. The following can have bearing on whether your tax situation may be best handled in bankruptcy:

Have you filed all your tax returns?
When did you file each year's tax return?
Has the IRS filed a Federal Tax Lien?

If the IRS is garnishing your wages, bankruptcy may stop the garnishment. In some circumstances, your debt to the IRS could be totally discharged or eliminated by filing bankruptcy. In other words, you would not owe the IRS one cent after filing bankruptcy.

If you are currently in an installment arrangement with the IRS - such as making monthly payments to the IRS - and this is causing hardship on your budget; or if your payments are just reducing the interest and penalty; you may want to consider bankruptcy as an option.

If, for any reason, your tax situation is causing you undue hardship or stress, you should call the Law Office of Weldon R. Grisham to schedule a free consultation so that you can make an informed decision on whether bankruptcy might be beneficial to you.

Remember, this is presented as general information only. If you feel you need legal advice, please contact the Law Office of Weldon Grisham at 817.390.0065 to arrange for a free consultation.

Weldon R. Grisham represents clients for Chapter 13 and 7 bankruptcies in most North Texas cities, including Fort Worth, Arlington, Weatherford, Keller, Cleburne, Granbury, Hurst, Euless, Bedford, Watauga, North Richland Hills, Haltom City, Southlake, Colleyville, Burleson, Bridgeport, Decatur, Mineral Wells, Jacksboro, Granbury, Stephenville and Comanche, Dallas, Lewisville, Flower Mound, Carrollton, Irving, Grand Prairie Counties served include Tarrant, Wise, Palo Pinto, Jack, Hood, Erath, Dallas County and Comanche.