Financial difficulties can happen to anyone regardless of how financially responsible they are. An experienced bankruptcy attorney in Dallas can help you find effective ways to get back on your feet. The attorney understands the different types of bankruptcy available for people that are overwhelmed with their debts.
Bankruptcy Attorney in Dallas
People file for bankruptcy in Dallas, Tx so that their debts can be discharged or eliminated. The filing also results in an automatic stay that stops the collection efforts of creditors such as repossessions, foreclosures, aggressive calls, and more.
Your bankruptcy attorney can help you through the process of managing debt such as:
- Credit card debt: This kind of debt can become overwhelming if you only make minimum payments per month or use your credit card to pay for daily expenses. But emergencies or unexpected circumstances can force you to use your credit card which may result in overwhelming debt.
- Medical debt: Many Americans have to deal with exorbitant medical bills when they get seriously sick or get injured in accidents. These bills sometimes lead to people losing their savings and even their homes.
- Tax debt: This debt is created when you don’t pay the tax balance shown on your federal income tax return in full before the deadline.
Your attorney can also help you stop wage garnishment, repossessions, and foreclosures. To eliminate personal debt you may have to work with your lawyer to file for either Chapter 7 or Chapter 13 bankruptcy. See also…Fort Worth Bankruptcy Law Firms.
What Is A Chapter 7 Bankruptcy?
Your bankruptcy attorney is likely to recommend filing Chapter 7 if you have no income or your income is too low. This bankruptcy is also called “liquidation” because it involves a bankruptcy trustee, appointed by a bankruptcy court, selling some of your property to pay debts. In most cases, real property such as your primary home and vehicle cannot be sold under this bankruptcy.
This is because these assets are categorized as “exempt” property in bankruptcy situations. The assets that can be sold are called nonexempt assets. This process of identifying exempt and nonexempt assets is complex. That means you need a bankruptcy attorney to help you identify the assets that you can keep when you file for Chapter 7 bankruptcy.
After your Chapter 7 is over, all the remaining debt is discharged or wiped out. Once your debts are erased, you get a fresh start and your creditors can no longer harass you.
What Is Chapter 13 Bankruptcy?
Unlike Chapter 7, you will still be required to pay some or all of the debt you owe under Chapter 13 bankruptcy. Your attorney will look at your financial details to see if you have a regular income that makes you eligible for this kind of bankruptcy. The attorney will also make arrangements for you to get the mandatory education and counseling you need for you to file Chapter 13.
Dallas Bankruptcy Lawyer Near Me
Having a bankruptcy attorney increases the chances of you receiving a discharge when you file a Chapter 7 or a Chapter 13. Bankruptcy is complex and any small mistake when preparing bankruptcy paperwork could cost you a discharge.