Perhaps you’re among those in Texas whose finances took a big hit in recent years, maybe due to loss of income, medical emergency or divorce. If so, you’re definitely not alone in your struggle. The good news is that many people have successfully overcome their financial problems by petitioning the court for bankruptcy. If you think this may be a viable option in your situation, there are several things you’ll want to know before navigating the process.
Rarely are financial problems permanent. How swiftly and fully you are able to resolve your current financial issues may hinge on the type of support resources you access. There are several types of bankruptcy and eligibility requirements for each that you must satisfy before applying. Knowing what kinds of obstacles can arise and who can provide crisis support can help secure debt relief and lay the groundwork for stronger financial future.
If someone objects to your petition
Let’s say you ask a bankruptcy court to forgive your medical debt. If a creditor suspects you of trying to beat the system or of committing fraud, your bankruptcy process might stall. If the creditor files an objection to your request for debt discharge, you will have to prove your need in an adversary proceeding.
What is that and how might it impact your case?
An adversary proceeding is a process a bankruptcy court uses to determine whether you have a legitimate need for debt forgiveness or whether it should uphold a creditor’s objection. A bankruptcy judge rules over adversary proceedings.
Support available for you in court
During an adversary proceeding or any other phase of the bankruptcy process, there is no reason you must go at it alone in court. There are support teams who understand the ins and outs of adversarial litigation and can help you determine a best course of action to serve your immediate needs and work toward accomplishing your ultimate financial goals.
Most people in Texas and elsewhere can relate to falling behind on paying bills and making ends meet. When minor financial problems snowball into major financial crises, you can be hopeful that a solution exists; it’s merely a matter of exploring your options, determining which path to take and creating a step-by-step plan toward restored financial stability. It might take time to get things back on track; however, down the line, you might wind up in better financial shape than you were to start.