Living within your means is a goal that many people strive for. Bills are paid on time, large purchases are planned and prepared well in advance, and debt is kept within a reasonable range. Unfortunately, that is not always possible. For many people, their debt reaches a level that they can no longer sustain. This may be caused by medical bills, the loss of a job or income stream, or any number of other factors.
When you are in a situation where your debt has become overwhelming, it is often stressful and scary. You want to be sure that you can support yourself and your loved ones, but it feels as if you will never be able to get out from under your debt. In these cases, filing for bankruptcy may be in your best interest. This filing is a way to either minimize or eliminate debt to help you regain financial stability. It is important to be as informed as possible if you choose to file for bankruptcy in Texas, and Steele Law Firm, PLLC, can help.
Financial strains and challenges are something that nearly everyone will face at some point in their life. The loss of a job, significant medical expenses, and other unexpected trials can cause you to take on more debt than you can reasonably manage. If you find yourself in these circumstances, it may be in your best interest to file for bankruptcy.
Bankruptcy laws were put in place as a way to protect individuals and businesses that have accrued more debt than they can repay. These laws are intended to allow those with overwhelming debt a way to find renewed financial stability and pay back their debt as much as they are able within a timely manner. When filing for bankruptcy, you can either choose to liquidate your assets to pay debts or create a payment plan. Filing for bankruptcy is the best option for many people and gives them the space and freedom to regain their financial stability over time.
There are many factors that can contribute to someone needing to file for bankruptcy. Any major change in circumstances can create significant debt. If that debt becomes overwhelming, then filing for bankruptcy may be the best option for someone to alleviate some of their debt. The need to file for bankruptcy can be caused by nearly anything. Some of the most common things that can cause such overwhelming debt are:
Filing for bankruptcy does not necessarily mean that someone is irresponsible with money. In many cases, an individual who finds themself filing for bankruptcy is facing an unexpected expense or change of circumstances. When you choose to file for bankruptcy, it is important to know how you should file to ensure that you get as much debt relief as possible.
Bankruptcy laws are created at the federal level, and they are extensive. The bankruptcy code is broken into various sections, often referred to as chapters. Each chapter represents a type of bankruptcy that is available either to an individual or to a corporation. When you file for bankruptcy, you will refer to your bankruptcy by its chapter. There are six types of bankruptcies, each dealing with a different circumstance.
Chapters 7 and 13 are the types of bankruptcies most often used by individuals. There are specific requirements that must be met for each of these chapters. If you believe filing for bankruptcy is the best choice for you and your family, it is important to understand which chapter you will need to file under.
This is one of the most common chapters of bankruptcy for individuals. Chapter 7 is sometimes called straight bankruptcy but is primarily known as liquidation. When you initially file with the proper bankruptcy court, a full list of all of your assets will be provided as part of your filing. This will play a key role in determining how your case is handled because it gives an idea of what assets may be liquidated in order to satisfy your debts.
There are many benefits when filing for a chapter 7 bankruptcy. A successful filing can stop your home from being foreclosed on, keep your utilities on while you catch up on missed payments, and ultimately discharge many of your debts. When debts are discharged, it means that you are no longer under any legal obligation to pay them back. This is a good option for many people, but it is not the only avenue available.
Chapter 7 bankruptcy can eliminate nearly all of an individual’s debt, so they no longer have to pay it back. That is not the case with Chapter 13 bankruptcy. When you file for Chapter 13 bankruptcy, you are still required to pay back some or all of your debts. A repayment plan will be created for you, which will most often give you three to five years to pay back what you owe.
Chapter 13 filings are only feasible for individuals who have a regular source of income that will allow them to make payments on their repayment plan. Retirement, social security, regular wages, and disability can all be classified as income when Chapter 13 bankruptcy is concerned. This type of bankruptcy cannot protect you from criminal charges or assist with debts accrued after the filing is complete, but it can stop creditors from harassing you and provide the time needed to reorganize income and assets to ensure you can make regular payments on your debt.
There are several other chapters that may be filed, but 7 and 13 are the most commonly used for individuals filing for bankruptcy. Regardless of which chapter you file under, one of the more difficult aspects of the bankruptcy process is the act of filing. The guidance of an experienced bankruptcy attorney can make the process easier to manage.
The initial process of filing for bankruptcy is often time-consuming and tedious. You must ensure that all paperwork and documentation is completed correctly, then follow all of the necessary procedures to avoid any mistakes or delays. A North Richland Hills bankruptcy attorney can help you understand what to expect when you are filing for bankruptcy, but it is important to know that the chapter you file under will determine your filing process. When filing for any chapter of bankruptcy, there are several first steps that are universal. Any individual filing for either Chapter 7 or Chapter 13 bankruptcy face the following steps:
Once these steps are done, anyone filing for Chapter 7 bankruptcy will only have to submit a financial management course certificate, and they will be done. Those filing Chapter 13 bankruptcy, however, have a few more steps. They must have their payment plan approved, complete their repayment plan, and file all necessary documents with the court. This process can be stressful and difficult, but it is worthwhile for those struggling with overwhelming debt.
One question that many people have when they are considering whether or not filing for bankruptcy is the correct choice for them is whether or not filing will impact their credit score. There is a belief that filing for bankruptcy could impact your credit score in a negative way. A low credit score can make it difficult to get lines of credit in the future if you are making large purchases, such as a home or a vehicle. Individuals who are attempting to get rid of their debt want to be sure that they will be able to recover financially in the future.
In order to preserve your credit, it is important that you file for the correct chapter of bankruptcy. Filing for a Chapter 13 bankruptcy allows you to protect your credit because a payment plan is created. You will be paying back your debt on a consistent basis and rebuilding your credit as you go. This process typically takes two to three years, but you will be well on your way to better credit when you are done. Other chapters of bankruptcy, such as Chapter 11, offer other protections but may make it more difficult for you to rebuild your credit. Overall, the best course of action is to choose the bankruptcy filing that best meets your needs and will help you to recover from your debt.
Filing for bankruptcy will have an impact on nearly every aspect of your life, but you still need to be able to support yourself and your family. Your assets are a major part of how you are able to do that. Depending on the type of debt you have and what chapter of bankruptcy you file, some of your assets may be seized.
When you file for certain chapters of bankruptcy, such as Chapter 13, you are still required to pay back at least a portion of your debts. Other chapters, like Chapter 7, liquidate your assets as a way to pay off the debts you owe. Liquidation is the process of selling off your property, including things like homes and vehicles, in order to pay off your debts. This helps to eliminate your debt, but losing major assets is also a harrowing concept. If you are filing for bankruptcy in North Richland Hills, it is important to know what assets you are able to protect when you file.
Losing all major assets when filing for bankruptcy would all but defeat the purpose of eliminating debt because the person filing would have no way to sustain themself moving forward. As a way to provide further assistance to those filing for bankruptcy, each state determines what assets can be protected during a bankruptcy filing.
Depending on the circumstances of your claim, there may be federal and state exemptions available for you. The exemptions offered in the state of Texas are more robust than many other states and can offer additional protection to citizens filing for bankruptcy. The most common exemptions offered in Texas are:
There are also similar federal exemptions available. Most of them are the same as those above, but federal exemptions also include:
The process of filing for bankruptcy is tedious and can often be confusing. Determining what assets you may be able to protect and what will have to be given up is a difficult process. Understanding the requirements and rules can make it simpler, but that is not a simple task. Working with an experienced North Richland Hills bankruptcy attorney can be invaluable as you complete your filing.
Navigating any legal process can be confusing and overwhelming, especially if you have never dealt with the legal system before. This is particularly true when you are filing for bankruptcy. The choice to file is often a difficult and emotional one, so having the proper support is essential. A North Richland Hills bankruptcy attorney can make the process of filing easier to manage. There are a few key ways they can offer assistance.
Making the decision to file for bankruptcy is not simple. It can be emotionally, mentally, and financially taxing, even if it is the best choice for you and your family. The process is time-consuming and may be confusing. It is important to be as prepared and informed as possible.
Working with a North Richland Hills bankruptcy attorney can make the process easier to face. They will be able to provide you with guidance, resources, and support as you file and throughout the entire experience. Working with an experienced bankruptcy attorney can give you peace of mind as you work through the filing process and begin to rebuild your financial stability. If you believe that bankruptcy is your best course of action, contact the team at Steele Law Firm, PLLC.