Bankruptcy can be a confusing concept, especially considering its legal and financial implications. A bankruptcy debt lawyer in Texas can help you navigate a bankruptcy and ensure you are the most financially stable after going through the process.
With the stress of trying to budget your finances, you may worry you won’t be able to eliminate your debt entirely. Whether you have a business you need to keep operational or you need to support your family, knowing your options when it comes to filing for bankruptcy is crucial.
Learn more about what exactly bankruptcy does for you, as well as if it can clear all of your debt in the state of Texas.
Bankruptcy can appear in multiple different forms, but the main idea is that this system assists those who possess a large amount of debt and need assistance paying it off.
The two most common forms of bankruptcy are Chapter 7 and Chapter 13. Chapter 7 allows someone to discharge all of their unsecured debt, such as loans, medical bills, and credit cards, allowing their debt to be paid off within a few months. Chapter 13, however, can last up to five years and requires you to pay a certain amount of money back every month through wage garnishments, foreclosures, and other solutions.
Every situation is different and requires its own specific plan. Some individuals may not benefit from Chapter 7 bankruptcy yet qualify for Chapter 13. It’s essential you meet with a bankruptcy lawyer immediately to discuss your options if you find yourself in this situation.
Bankruptcy is designed to help people clear out their staggering debt, and some may wonder if this process alone can bring them out of debt entirely. It’s crucial to keep in mind that just because you’ve qualified for bankruptcy doesn’t mean this automatically eliminates your debt completely. In some cases, yes, your debt can be completely repaid by the end of the process. However, this isn’t guaranteed and can change based on the form of bankruptcy you qualify for.
For example, Chapter 7 bankruptcy in Texas allows you to pay off most of your debt, but there’s a chance you can pay it all off through these four to six months. In order to have your debt “discharged,” you must be able to prove you do not have the disposable income required to repay the remaining debts.
However, some debts cannot be repaid through bankruptcy and may require you to pay them after your process is finished. For instance, child support and student loans cannot be cleared out as a result of filing for bankruptcy, as you will most often be required to pay this off, no matter what kind of bankruptcy process you go through.
Aside from a few specific examples, your debts can be eliminated through the bankruptcy process. It’s essential you speak with a knowledgeable bankruptcy lawyer about your situation and what debts can be cleared with certain payment plans.
You may believe you can go through Texas’s challenging legal system on your own and successfully clear your debts, but the odds of this happening are quite low. A lawyer’s assistance can ensure you have the proper debts cleared throughout the entire process, and they can help defend you if any disputes arise.
For example, if you’ve provided payment but are being threatened with foreclosure, your lawyer can investigate the situation and determine how to move forward. While a lawyer isn’t mandatory for your situation, they can make a noticeable difference in the outcome of your bankruptcy case.
A: Bankruptcy in Texas allows you or your business to eliminate your overwhelming debt through different means. You can have your wages garnished and make monthly payments, or you can sell off some of your assets in order to repay your debt. You must meet specific criteria to be eligible for bankruptcy, and if you fail to abide by your terms in the payment plan, you risk losing more assets than intended.
A: There is no guarantee that your debts will be fully cleared through bankruptcy, but it can happen depending on your circumstances. Some debts, including child support, alimony, taxes, and fines, aren’t eligible to be cleared through bankruptcy, but other unspecified debts can be fully erased through the process. It’s recommended you speak with a lawyer about this prior to filing for bankruptcy so you understand your specific situation more clearly.
A: If you file for bankruptcy in Texas, your primary residence, jewelry, clothing, livestock, cars, furniture, and other common items can be protected. You aren’t in danger of losing everything you own via bankruptcy, but some assets can be taken and sold in order to repay your debts. Should someone claim they can take a certain possession of yours, it’s wise to consult a lawyer as soon as possible so they can determine if this is legal.
A: Yes, it is possible to be denied bankruptcy according to Texas law. If you have a bankruptcy discharge within the past eight years or were dismissed from a bankruptcy plan within the previous 180 days, you can be denied a new bankruptcy plan. When filing for bankruptcy, your prior financial situation and actions will be considered when finalizing a decision, and if you are still being denied bankruptcy, your lawyer can assist you in settling this issue.
Bankruptcy can be a scary process to go through, but there is a path forward. You may have difficulties finding the right bankruptcy plan for you, or you’ve been denied assistance and don’t know why.
No matter what situation you’ve found yourself in, Steele Law Firm can help. We prioritize your interests and work as precisely as possible to help you navigate your bankruptcy situation. Whether something is unclear or you don’t know what certain terms laid out in a payment plan are, we’re here to help it all make sense.
Contact us today to learn more and schedule a free consultation.