Bankruptcy is a legal option that allows individuals or businesses in financial distress to either liquidate their assets to pay off creditors or create a repayment plan to pay off the debt over time. In Coppell, Texas, individuals and businesses can file for bankruptcy in the Northern District of Texas under the jurisdiction of the United States Bankruptcy Court.
The most common types of bankruptcy filed by individuals in Coppell are Chapter 7 and Chapter 13. Chapter 7, also known as "liquidation" bankruptcy, allows individuals to discharge certain types of debt. Chapter 13, also known as "reorganization" bankruptcy, allows individuals to create a repayment plan to pay off debt over a 3- to 5-year period.
Before you file, it is important to consult with an expert bankruptcy attorney in Coppell. They can help you determine which type of bankruptcy is best for your specific financial situation.
Steele Law Firm is dedicated to providing expert legal advice and representation to individuals and businesses in Coppell, Texas, who are facing bankruptcy. Our experienced bankruptcy team can listen to your specific financial concerns and provide individualized advice on the best way to proceed with filing for bankruptcy. We can analyze your financial situation and inform you of the advantages and disadvantages of filing for Chapter 7 or Chapter 13. We can also work diligently to help you understand the process of bankruptcy, answer any questions you may have, and provide comprehensive legal guidance throughout the entire bankruptcy process. Contact us today to see how we can help you regain financial security.
Filing for bankruptcy is often the last resort for people in Coppell who are struggling financially and need a fresh start.
Common reasons why someone would file for bankruptcy in Coppell include:
Deciding whether to file for bankruptcy can be a complex and confusing decision. It is important to consult with an experienced bankruptcy attorney to discuss your financial situation and get expert legal advice on whether filing for bankruptcy is the right option for you. Your attorney will be able to review your financial situation and provide individualized recommendations on the best way to proceed.
Common factors to consider before filing for bankruptcy include:
Chapter 7 and Chapter 13 are two very common types of bankruptcy in the United States.
Chapter 7, also known as "liquidation" or "straight" bankruptcy, is a process in which a court-appointed trustee sells the debtor's non-exempt assets to pay off creditors. After the assets are sold, and the proceeds are distributed to creditors, the debtor is discharged from most of their unsecured debts. Chapter 7 is typically used by individuals and small business owners with few assets and high levels of unsecured debt, such as credit card debt or medical bills.
Chapter 13, also known as "reorganization" bankruptcy, is a process in which the debtor proposes a repayment plan to pay off a portion of their debts over three to five years. The debtor must have a steady income, and their debts must fall within certain limits to be eligible for Chapter 13. Chapter 13 is typically used by individuals who have regular income and want to keep their assets, such as a home or car. However, they need an opportunity to catch up on missed payments or pay off debts over time.
Filing for bankruptcy can stop creditor harassment. Once you officially file for bankruptcy, an automatic stay goes into effect. This court order prohibits creditors from taking any further collection actions against you, including contacting you by phone, mail, or in person, or filing a claim. It also stops wage garnishment, foreclosure, and repossession. It is important to note that the automatic stay will not stop all collection actions, such as those related to certain types of debts, such as child support or taxes.
However, note that some harassing collection calls may not stop immediately after filing for bankruptcy, as the creditor may not be aware of the filing yet. In this case, notify the creditor of your bankruptcy filing and provide them with the case number. If the harassment continues, inform your attorney.
It is also important to note that after filing for bankruptcy, it is essential to keep up with the court-mandated payments and attend the required credit counseling sessions. If you fail to do so, the court may dismiss your case, the automatic stay will be lifted, and creditors will be able to resume their collection actions.
Here are some tips for making the most of bankruptcy:
A: There is no set amount of debt that you must owe before declaring bankruptcy. The decision to file for bankruptcy should be based on your financial situation and whether you can pay off your debts with your current income and assets. However, if you are struggling to make ends meet and cannot pay off your debts, consider bankruptcy as an option.
A: Filing for bankruptcy is generally better than not paying your debts. Not paying your debts can lead to wage garnishment, foreclosure, repossession, and legal action. In contrast, filing for bankruptcy can relieve these debts and stop creditor harassment. Additionally, filing for bankruptcy can help you get a fresh start and rebuild your credit.
A: Filing for bankruptcy can significantly impact your credit score and your ability to obtain credit in the future. However, keep in mind that if you are already struggling with debt and cannot pay your bills, your credit score may already be damaged. In addition, filing for bankruptcy can provide relief and prevent further damage to your credit if you face wage garnishment, foreclosure, or repossession.
A: Filing for bankruptcy can be a good way to start over and get a fresh financial start. It can provide relief from overwhelming debt and stop creditor harassment. Additionally, it can prevent foreclosure and repossession of your assets. However, it is important to keep in mind that bankruptcy should be considered a last resort and that it can significantly impact your credit score. It is also important to take steps to rebuild your credit after filing for bankruptcy and learn from the experience to avoid falling into the same financial situation again.
If you are considering bankruptcy, it is vital to have the right legal help. Our bankruptcy law firm's team of experienced and knowledgeable attorneys can provide you with the guidance and support you need to make an informed decision about filing for bankruptcy. We understand the bankruptcy process's complexities and are dedicated to providing you with effective legal solutions. Contact us today for a consultation and find out how we can help.