Foreclosures, repossessions, credit card debt and an increasing unemployment rate has made bankruptcy a reality for many Americans, especially in recent years.
Filing for bankruptcy does not have to be difficult and stressful. A qualified bankruptcy attorney can help you through this often confusing process. You are not alone! Many families are currently having financial difficulties. In the last few years there has been a significant increase in bankruptcy filings. These difficult financial times have also led to an increase in home foreclosures, loan defaults, and increased creditor harassment.
We provide a FREE EVALUATION for Bankruptcy and provide Debt Resolution Services to avoid Bankruptcy, if applicable.
PLEASE DOWNLOAD AND FILL OUT THE ATTACHED QUESTIONNAIRE PRIOR TO YOUR CONSULTATION: Bankruptcy Evaluation Form
Reasons for Filing Bankruptcy
During your FREE LEGAL CONSULTATION a bankruptcy attorney will discuss your options and reasons for filing bankruptcy. Here are a few reasons why people inquire about declaring bankruptcy in North, East, South and Central Texas.
• Job Loss
• Foreclosure or Repossession
• Credit Card / Unsecured Debt
• Back taxes: if you owe more money to the IRS than you have available, bankruptcy may be an option for protecting your assets.
There are various other reasons that people choose to file for bankruptcy. There are also several different types of bankruptcy, and your bankruptcy attorney can inform you of the benefits available to you upon completing the bankruptcy process.
If you are under a significant amount of stress, and are curious about bankruptcy, please fill out our Bankruptcy Evaluation Form. An experienced attorney will contact you to answer any questions you may have. The INITIAL CONSULTATION IS FREE!!!! If you cannot pay off your debt in the next five years, then why not consider bankruptcy? Take an initial hit on your credit score, wipe out all of your debt and START FRESH. You can be debt free, rather than living with fear and stress.
What is Chapter 7, What is Chapter 13
WHAT: Bankruptcy is a legal process that provides relief to many individuals who can no longer pay all of their debts.
WHO: Any individual who has debt is eligible to file for bankruptcy. Whether bankruptcy is right for you, and which Chapter would be most beneficial to you is something to speak with a qualified attorney about.
WHEN: NOW- The first step to bankruptcy is to contact an attorney and schedule a FREE LEGAL CONSULTATION. Once you have provided your attorney with the information needed to prepare your filing, you can begin the process.
WHERE: You will need to file your bankruptcy in the United States District where you currently reside, or where you have lived the longest of the last six months.
WHY: Many people file for many different reasons. Some common reasons are loss of employment, decreased income, large amounts of credit card debt, past foreclosure or repossessions, to prevent a foreclosure or repossession, tax debts, divorce, and many other personal reasons.
What is Chapter 7 Bankruptcy
Chapter 7 Bankruptcy, also known as “liquidation,” is a legal process by which most unsecured debts can be discharged, or wiped out. Chapter 7 bankruptcy is known as liquidation because any non-exempt assets the debtor has may be liquidated (sold) by the trustee for the benefit of creditors.
Many Chapter 7 bankruptcy debtors have no non-exempt assets, and so there is no liquidation, (meaning you do not lose any of your property) and unsecured debts are simply discharged. There are, however, certain unsecured debts that are not dischargeable in Chapter 7 bankruptcy. Speak to a qualified attorney to determine how your assets will be affected. Simply fill out the FREE LEGAL EVALUATION form and an experienced attorney will contact you.
What is Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is a full or partial repayment plan administered by the bankruptcy court. The debtor submits a plan for approval and, when a plan is approved, makes monthly payments to the bankruptcy trustee. The trustee makes payments to creditors in accordance with the terms of the plan. The repayment period ranges from 3-5 years. At the end of the repayment period, if all payments have been made according to the plan, remaining unsecured, dischargeable debt may be discharged.
How Fast is Chapter 7 Bankruptcy?
The short answer is that Chapter 7 bankruptcy cases can take as little as four months to six months.
How Long Will Chapter 7 Bankruptcy Be On My Credit?
Chapter 7 bankruptcy can stay on your credit for a total of 10 years after filing. However, most often it will not show up on a general credit check after 5 years.
How Can I File Chapter 7 Bankruptcy?
To file for Chapter 7 bankruptcy, you must meet a few qualifications. One qualification includes comparing your income to the median income in Texas. If your income is lower than the median income in your state, you can file for Chapter 7 bankruptcy. However, if your income is greater than the median income in your state, other calculations regarding your income and allowable expenses are required to determine whether or not you can file for Chapter 7 bankruptcy, this is called the Means Test.
Who Can File Chapter 13 Bankruptcy?
Most anyone can file a Chapter 13 bankruptcy. In one sense, it’s easier to qualify for Chapter 13 bankruptcy than for Chapter 7 bankruptcy. There’s no means test for Chapter 13 bankruptcy, and some debtors who cannot qualify for Chapter 7 bankruptcy choose to file under Chapter 13 bankruptcy instead. However, Chapter 13 bankruptcy requires a regular income that will allow you to create a budget and make predictable and reliable payments to the trustee. Further, if you are facing a pending Foreclosure, this Chapter will provide you more protection than a Chapter 7.
Is Chapter 7 or Chapter 13 Bankruptcy Better?
The answer to this question depends on your specific circumstances. Generally speaking, Chapter 7 bankruptcy is better for people who have a lot of unsecured debts, like credit card debt and medical bills. If you don’t have much property, your income is low, and most of your debts are unsecured, you might want to consider Chapter 7 bankruptcy. Chapter 13 bankruptcy, on the other hand, tends to be a better option for those who have regular income and non-exempt property they’d like to keep. A local bankruptcy attorney can review your specific financial circumstances and advise you as to which type of bankruptcy protection might be best for you.
How Can I Rebuild My Credit After Bankruptcy?
It is easier than ever to rebuild your credit post-bankrupcty. Here are some helpful tips to successfully rebuild your credit:
1. Open a checking or saving account. Lenders look at this as a way to determine your responsibility with money.
2. Open accounts with stores or gas companies. These are items that you are going to purchase anyway, so you might as well use them to rebuild your credit.
3. Take out a loan with a family member or friend as a co-signer, and pay this loan on time.
4. Try to stay away from “Payday Loans” as they are high interest and a credit trap.
5. Purchase a used car from a dealership that advertises that they are friendly towards people that have filed bankruptcy.
There are many other tips for improving your credit post-bankruptcy. By following a few of these suggestions, it can help to rebuild your credit before you know it.
Florio Law Firm, PLLC
420 Throckmorton, Suite 200 Fort Worth, Texas 76102
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