Please note that these comments are general in nature, are not intended to address a specific legal question, and do not constitute legal advice.

Thank you for considering David K. Sergi & Associates, P.C. to help you reorganize your financial affairs by taking advantage of the protection offered by the U.S. Bankruptcy Code. Our Bankruptcy Lawyers realize this can be one of the most traumatic steps you take in life; however, you are doing nothing but protecting your financial well being and doing so in an ethical manner. Believe it or not, but most credit providers assume they will writeoff some debts due to bankruptcy filings. You are doing nothing that the average credit provider does not expect and has made provisions for. You have not filed bankruptcy; rather, you have filed “for protection under the Bankruptcy Code.”

THE FIRST STEP: Fill out the petition

A simple form that requires basic information such as personal information (name, address, etc.), estimates about the total number of creditors, total amount of the creditor’s claims, and the value of your assets.

THE SECOND STEP: Fill out financial information forms

These forms ask for details such as creditors, collection agencies and/or attorney, account numbers, etc. These details are required to obtain the full benefit of filing for protection under the Bankruptcy Code. If you fail to list a creditor, that claim may not be discharged; or if you fail to list a creditor’s collector and/or attorney, you might continue to receive harassing phone calls from them simply because they do not know you have filed for protection. Please take the time to fill these out accurately and completely. DISCLOSE EVERYTHING!!! If unsure, please call the office to make an appointment to work through any questions. By following the second step, you will avoid receiving calls at work or home asking for account numbers, account balances, addresses, etc.

The information you provide is used to assemble various documents called schedules. The Court will use these schedules to decide what relief you may be entitled to. In Texas, the law allows you to keep many assets despite your financial condition. The schedules will contain your claim that certain property is exempt (yours to keep). AGAIN, DISCLOSE EVERYTHING!!!

THE THIRD STEP: Debtor Reorganization

Debtor Reorganization is your payment reduction and prevention of any scheduled foreclosures protection under Chapter 13 of the Bankruptcy Code. After assembling all information, our Bankruptcy Law Section creates a budget. This budget is a list of all your living expenses. Then our Bankruptcy Law Section takes your net monthly income and subtracts your budget items. The amount left is called your plan contribution (the amount you are able to pay each month. Our Bankruptcy Law Section runs these figures to see if your plan contribution provides enough money to your creditors to make the plan feasible. In each case, there are general guidelines as to what will be acceptable to the Bankruptcy Court. However, as a general rule, you will have to meet your regular monthly payments on secured property, make acceptable payments to priority creditors (taxing entities for example), and pay your unsecured creditors more than if you filed for liquidation under Chapter 7 of the Bankruptcy Code.