Facing bankruptcy is an extremely difficult situation for many individuals. Not only do you face uncertain circumstances and the stress that comes with a financial burden, but you must also deal with the stigma that often comes with the inability to meet your financial obligations. When you experience this stigma, along with the many unfair myths surrounding bankruptcy, the process can seem overwhelming and intimidating.
However, it’s important to know that you have a few different options when it comes to filing for bankruptcy. Bankruptcy is not a one-size-fits-all matter, and there may be a potential solution that enables you to work while keeping your life relatively intact. Once you file, you gain the ability to begin again with a clean slate, allowing you to set different habits, strategies, and priorities.
When facing bankruptcy, it’s essential to hire a White Settlement bankruptcy attorney to help you with the process. The expertise offered by an attorney can reveal potential financial solutions that would otherwise not be available to you. An attorney can also help ensure you reach a fair bankruptcy settlement that enables you to pursue financial freedom.
The team at Steele Law Firm supplies exemplary bankruptcy legal services primarily because they are the only services we provide. Rather than being stretched thin by offering representation in multiple different practice areas, we focus only on bankruptcy law. This has enabled our attorneys to gain an incredible amount of experience in the field, as well as the focused expertise, invaluable resources, and critical connections many other firms lack. We have built a deep knowledge of the intricacies of bankruptcy laws in Texas. To date, we have settled thousands of bankruptcy cases.
No matter your financial circumstances, Steele Law Firm provides give you reliable, empathetic bankruptcy solutions for individuals in White Settlement as well as the Dallas Fort Worth area. You can trust our team to help you through this time and set you up for a brighter future. Read on to learn more about bankruptcy and determine which type of bankruptcy is right for you.
Many people understand the general concept of what it means to file bankruptcy, but the process itself can be fairly complex. In general, bankruptcy is a situation in which an individual or entity declares themselves unable to pay the debt owed to their creditors. After filing bankruptcy, the court works to identify your assets and income as well as your debts and determine which of the existing bankruptcy types work the best for both you and your creditors. Depending on which type of bankruptcy you file, you may be required to liquidate your assets or create a repayment arrangement to reorganize your finances.
Chapter 7 bankruptcy is possibly the most well-known type of bankruptcy and is known as the “liquidation bankruptcy.” In Chapter 7 bankruptcy, bankruptcy court appoints a trustee to assess an individual’s remaining assets and debts. If restructuring is not possible, the trustee will sell off certain assets to pay off your debts.
Though this may seem upsetting, certain essential assets may be declared exempt from liquidation, including homes with little to no equity. After the process is complete, individuals receive a discharge of most debt types, excluding. For this reason, you must first pass a means test to qualify for Chapter 7—if you have too many assets or too much income according to Texas guidelines, you must choose Chapter 13.
Chapter 13 bankruptcy is known as a “reorganization bankruptcy” and is generally used for individuals or sole proprietors of a business. Rather than taking your assets, Chapter 13 bankruptcy simply assesses what you have, then helps you develop a debt repayment plan that will satisfy your creditors. In this scenario, you still pay off at least part of your debts, usually over several years.
Chapter 13 bankruptcy doesn’t exempt you from your debt responsibilities. Rather, it forms a system in which you can pay off part of what you owe on a schedule that’s more manageable than the circumstances you experienced before your decision to declare bankruptcy. The benefit of this is that you get to retain your assets, and you’re protected from home foreclosure, business dissolution, and harassing calls from creditors.
It is essential that you have a White Settlement bankruptcy attorney on your side while filing for bankruptcy of any kind. Without professional legal help, it’s easy to take wrong turns in the bankruptcy process. Most importantly, however, it’s crucial to determine what kind of bankruptcy is right for your family or small business.
Having an attorney on your side ensures that you understand the various types of bankruptcy filings, the kind of debt you face, and the options you have for retaining your assets and maintaining your business. It also ensures that if you do file for bankruptcy, the process will be completed expeditiously and legally. Working with a bankruptcy attorney offers you the peace of mind you need to rebuild a new financial future for your business or your family.
Unfortunately, many people believe that you cannot rebuild your credit after bankruptcy and that your finances and your business are ruined forever. However, this usually isn’t true. In fact, restructuring or discharging your debt can often be the beginning of an improved credit history. For example, many people who file for Chapter 13 bankruptcy can begin rebuilding credit after they are finished with their payments. Though this does take some time, it’s important to know that business loans, personal lines of credit, and other forms of credit are not out of the question for you.
Though bankruptcy can be a stressful situation, it can be incredibly helpful to end the financial strain you are currently experiencing. Many individuals and businesses alike find relief from addressing the problem with an approved bankruptcy strategy. Steele Law Firm is here to help you protect your best interests and stand with you every step of your bankruptcy proceedings. For more information, please contact us online to schedule a consultation.