Fort Worth Bankruptcy Lawyer

Bankruptcy is a tool that you can use when you cannot afford to pay back your creditors. Filing for bankruptcy in Fort Worth, Tx can lead to a bankruptcy court putting an automatic stay which halts collection actions from creditors. It stops actions such as repossessions, foreclosures, aggressive phone calls, and others.

Before you decide to file for bankruptcy, talk to debt-relief lawyers because they can help you choose the right type of Texas bankruptcy. They can also review your situation and suggest other alternatives to filing for bankruptcy.

Filing A Chapter 7 Bankruptcy

People are often drawn to filing for  Chapter 7 bankruptcy because it can lead to a significant amount of their debt getting wiped out. These include unsecured debts such as credit card debt, personal loans, and medical bills. But some people mistakenly believe that Chapter 7 bankruptcy means all their property will be sold.

When you hire a bankruptcy lawyer, the lawyer will review your case to see if you are eligible for filing for Chapter 7. Your income must be equal to or below the state median income level to qualify. You may have to undergo a means test if your income is higher than the state median income level.  The means test evaluates whether you can repay some of your unsecured debt.

Filing A Chapter 13 Bankruptcy

Unlike Chapter 7, Chapter 13 bankruptcy reorganizes your debt instead of eliminating all of it.  You have to come up with a three to a five-year repayment plan.  The Texas Bankruptcy courts may work with you to modify loan agreements, reduce some debt, and eliminate some unsecured debt.

Since a Chapter 13 bankruptcy is more complicated than Chapter 7 bankruptcy, you will need an experienced Fort Worth bankruptcy lawyer to help you create a repayment plan that you can stick to. Your lawyer will comprehensively evaluate your income and finances when they are working with you on the repayment plan.

Most people who are not eligible to file for a Chapter 7 are often advised to file for Chapter 13. A Chapter 13 is seen as the appropriate bankruptcy option for people with a steady income. This is because such people are likelier to make regular monthly payments for their Chapter 13 repayment plan.

Fort Worth Business Bankruptcy Lawyer

Just like individuals, businesses sometimes go through financial distress and fail to repay their debts.   Businesses often file either Chapter 7 or a Chapter 11 bankruptcy, but they can also choose to file Chapter 13 depending on circumstances.  Small business owners that want their debt discharged without a repayment plan can file  Chapter 7 bankruptcy. People who want to continue doing business can file for Chapter 13.

You need to consult an experienced Fort Worth bankruptcy lawyer to help you determine the right bankruptcy option for your small business. Sometimes, based on circumstances, your lawyer can suggest negotiating with your creditors instead of filing for bankruptcy.

Fort Worth Bankruptcy Attorney

When you file for bankruptcy certain debts you owe can be erased. A court may also put an automatic stay that can stop foreclosures, repossessions, and other collection practices.