When you are in a position where you must consider bankruptcy, you are already feeling the strain related to uncontrollable and unmanageable debt. This strain can reach a tipping point while you are attempting to figure out the process to effectively file for bankruptcy. Failing to use bankruptcy to its full advantage can have long-term, damaging effects, dragging down the effectiveness of a process meant to create a clean financial slate to build on. A skilled Irving bankruptcy lawyer can support you through bankruptcy, helping you make decisions that can set you up for success once the bankruptcy is complete.
Bankruptcy is a federal process created to help people who find themselves in more debt than they can reasonably pay off. It enables these individuals to liquidate some assets to pay their debts or create a repayment plan. Petitions can be filed by an individual, spouses, a municipality, a corporation, or another entity. Bankruptcy cases are heard in federal courts, under rules detailed in the U.S. Bankruptcy Code. Each type of bankruptcy is generally referred to by the relevant chapter in this code and includes:
The attorney you choose during your bankruptcy can have a significant impact on how your case proceeds as well as how you feel during the process. An internet search will show a long list of potential Texas bankruptcy attorneys, so finding methods to narrow down that list is important. Considering these factors can help you find an attorney who is right for you:
A: You will not lose all your assets if you file for Chapter 7 bankruptcy. Both federal and Texas laws have accounted for these concerns and have a list of assets that are exceptions to bankruptcy liquidation. Texas laws are often generous to those filing Chapter 7; for example, there is an exception for property totaling less than 100 acres in a rural area or less than 10 acres in a town.
A: Loan modification is a potential alternative to declaring bankruptcy. It is a negotiation between a creditor and a debtor that results in a modified loan agreement, allowing a lower payment. This helps the debtor avoid filing for bankruptcy, and the creditor is able to continue collecting on the debt instead of risking losing the entire amount owed. For this reason, many creditors are willing to negotiate the debt, especially if they are approached by an experienced bankruptcy attorney.
A: The impact bankruptcy has on your credit score depends on your existing score, credit history, and other credit factors. Bankruptcies will appear on your credit report and can stay on the report for up to ten years, negatively affecting your score and ability to open future lines of credit. However, if your credit score is low and the bankruptcy significantly reduces your debt-to-income ratio, your score may increase.
A: In most instances of bankruptcy filings, you will only need to attend a proceeding called the “meeting of creditors.” During this proceeding, you will meet with any creditor that chooses to attend the meeting and the bankruptcy trustee. This meeting is usually short and simple; you will be asked questions about your financial situation and bankruptcy forms. Unless complications arise, or you choose to dispute your debt, you will not need to appear before a judge.
As a firm that focuses primarily on clients going through consumer bankruptcy, Steele Law Firm is dedicated to helping you succeed in your financial future. Our team members understand how complex and emotionally draining bankruptcy can be, so we ensure a judgment-free experience throughout your case. Whether your most effective option is bankruptcy or alternatives like debt modification, our team is ready to take on your case. To schedule a consultation with the adept Steele Law Firm team, contact our office today.