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Toronjo & Prosser Law

Toronjo & Prosser Law provides comprehensive debt-relief services to individuals, families and small business owners throughout the Dallas-Fort Worth area. If you are struggling with insurmountable debt, our bankruptcy attorneys can help explore all your options. Despite the common perception that bankruptcy is a personal failure, we know that individuals and businesses can become financially distressed through no fault of their own.

Well-versed in the U.S. Bankruptcy Code and Texas exemptions, we regularly help our clients navigate Chapter 7, Chapter 11, and Chapter 13 bankruptcy proceedings. If you are being threatened with creditor lawsuits, facing a foreclosure or at risk of defaulting on a business loan or credit cards, you need the informed representation we provide. When you consult with us, we will take the time to understand your circumstances and work to help lift your financial burdens.

We Put Our Clients First

Guided by the principle of always putting the interests of our clients first, we will provide you with trustworthy advice and objective insights so that you can make the best decisions about your future. Bankruptcy attorneys Mark Toronjo and Derek Prosser have successfully handled thousands of bankruptcy petitions and are also highly experienced in debt negotiations.

If you are in financial trouble, Toronjo & Prosser Law will be your lifeline. Because we understand your situation, we offer free consultations and affordable payment plans. The sooner you contact our experienced Texas bankruptcy attorneys, the sooner you can get a fresh start on your finances.

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Is Bankruptcy the Right Option for Me?

At Toronjo & Prosser Law, we believe that all clients should be approached the same way and without judgment. It is our mission to make sure all clients feel like we understand what they’re going through. Clients are advised that filing for bankruptcy is a serious consideration and that there can be repercussions. While a bankruptcy will remain on your credit report for a period of 7-to-10 years, depending on the type of filing, most credit scores improve dramatically long before the bankruptcy filing disappears from their credit report.

Credit scores are impacted by numerous factors, including:  bankruptcy filings, missed and defaulted payments, foreclosures, repossessions, judgments, etc.  In most circumstances, seeking bankruptcy protection to avoid the negativity associated with those factors can help to reorganize your finances and protect your assets and your future. The most common bankruptcy options include:

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Chapter 7 Bankruptcy

A Chapter 7 bankruptcy is the quickest and simplest form of bankruptcy.  Although it is known as a liquidation bankruptcy, in most cases debtors are able to keep all of their property.  Chapter 7 bankruptcy is effective because it can eliminate most of your unsecured debt and is available to both individuals and businesses.  In some instances, if the debtor is unable to protect (i.e. exempt) all of their assets, a Chapter 7 case trustee can sell the non-exempt assets to repay all or part of your debts.  At the conclusion of the case, the debtor is awarded with a discharge of their dischargeable debts. 

It is important to know that debtors are allowed to “exempt” most, if not all, of their assets in a chapter 7 bankruptcy.  Whether state law exemptions or U.S. federal exemptions are applied, the attorneys at Toronjo & Prosser Law will be able to navigate the protection of your assets, and advise each debtor on whether or not some of their assets are non-exempt and unprotected.  

Businesses that file for bankruptcy do not receive a discharge like individuals do.  Instead, businesses in chapter 7 are closed, and any remaining property of the business will be liquidated to pay business debts.

One of the most important benefits of filing a Chapter 7 bankruptcy petition is the automatic stay.  Once a case is filed, the automatic stay goes into effect to stop creditors from attempting to collect on their debts.  Some of the more commons creditor actions that the automatic stay stops are:

  • Wage garnishments
  • Repossessions
  • Foreclosures
  • Creditor lawsuits
  • IRS tax levies
  • Evictions

The automatic stay remains in effect until the bankruptcy is either dismissed or discharged. If your case is dismissed, however, collection activities can restart.  The bankruptcy attorneys at Toronjo & Prosser can help to identify situations where a case could be at risk of dismissal. When a Chapter 7 bankruptcy is discharged, the unsecured debt is eliminated.  However, the bankruptcy will be dismissed if the proper paperwork is not filed correctly, the debtor fails to provide the court with any requested information, or if the debtor engages in fraud, such as concealing or transferring assets.

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Chapter 13 Bankruptcy

Chapter 13 bankruptcy is referred to as a reorganization bankruptcy that is only available to individuals and married couples.  Businesses are not eligible to file for chapter 13 bankruptcy under the Bankruptcy Code.  In essence, chapter 13 bankruptcy is a 3 to 5 year court-approved repayment plan that helps the debtor consolidate their debts while retaining their property (and, in most instances, keep the property even if it is non-exempt!). 

The automatic stay also goes into effect in chapter 13 bankruptcies, stopping all collection activities, foreclosures, repossessions, etc.  Chapter 13 can help debtors reinstate their missed mortgage payments by including the arrearage in the repayment plan, which allows the debtor to catch up on the delinquent payments over the life of the case, as well as continuing to make the regular monthly payments. 

Chapter 13 is also useful in consolidating other debts, such as:  high interest credit cards, business and personal loans, delinquent child support obligations, past due taxes, alimony, and car repossessions.  For a Chapter 13 to be discharged, the payment plan must be completed. If you fail to make the payments, your case will be dismissed and creditors can resume collection activities and lawsuits. 

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Other Types of
Reorganization Bankruptcy

In addition to Chapter 13 bankruptcy, another type of reorganization bankruptcy is Chapter 11 bankruptcy.  Chapter 11 is commonly used by businesses to restructure their affairs; however, it is also available to individuals in limited circumstances. If you are considering Chapter 11 bankruptcy, our legal team can help to determine whether this is a viable option for you.

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Common Reasons for Bankruptcy

Anyone can experience financial hardship, regardless of age, background, education or income level, through no fault of their own. The leading reasons for bankruptcy include:

Medical Expenses

A 2019 study published in the American Journal of Public Health indicates that medical issues — the high cost of care, time lost from work — account for 66.5 percent of bankruptcy filings in the U.S. The study also found that the majority of filers had some form of health insurance; serious illnesses or injuries, however, can result in hundreds of thousands of dollars in medical bills that are not fully covered. Because medical bills can quickly deplete savings and retirement accounts, bankruptcy may be the only alternative.

Job Loss

The loss of income due to a layoff, termination, or unemployment can be devastating. Employers are not required to offer severance packages, and unemployment benefits do not replace all of the lost income. The loss of insurance coverage and the cost of obtaining private insurance coverage can also add to a job seeker’s financial burdens. Those who are unemployed for an extended period without an emergency fund to rely on one can easily spend through their savings and may not be able to pay their creditors, which makes filing for bankruptcy necessary.

Poor / Excess Use of Credit

Individuals who cannot control their spending are at risk of having their credit cards, auto loans, and other debts spiral out of control. While some borrowers may be able to obtain a debt consolidation or home equity loan, these tactics often fail, leaving bankruptcy the only option.

Divorce / Separation

A marital breakup can result in significant financial burdens for both parties, including legal fees, dividing the marital property, child support orders, spousal support, and the cost of maintaining two separate households after divorce is settled. These costs can make it more difficult for both parties to keep up with their bills and cause either of them to seek bankruptcy protection.

Unexpected Expenses

Emergencies happen. A death in the family or property damage arising from a natural disaster (e.g. earthquake, flood) can cause significant hardship for those who are uninsured or underinsured. Such a calamity can result in having to file for bankruptcy. 

We Are Here For You

Regardless of the reason for your financial troubles, Toronjo & Prosser Law will always be there to answer your questions. Our bankruptcy attorneys are here to provide you with workable debt-relief solutions. From negotiating with creditors to assisting with bankruptcy filings to working out business loans, we will design a strategy to protect your rights and your financial future.

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Contact Our Experienced Texas Bankruptcy Attorneys

If you are struggling to pay your bills, keep up with your house and car payments, or being sued by creditors, turn to the bankruptcy attorneys at Toronjo & Prosser Law. We can help you navigate your financial difficulties and fully explain the bankruptcy process in Texas. We know that the legal system can be complicated and intimidating, and we will stand by you every step of the way. When you become our client, you will have peace of mind knowing that debt relief and a fresh start is within your reach. Please contact our office today to set up a consultation.

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Our Offices

Dallas Office 8150 N. Central Expressway, Suite 975
Dallas, TX 75206


Call our office 214.609.8787

Southlake Office 950 E. State Hwy. 114, Suite 160
Southlake, TX 76092


Call our office 214.609.8787