Katy Bankruptcy Attorney
There is a way out of the constant threatening phone calls from creditors and sleepless nights thinking about how you will pay your debts. An experienced Katy bankruptcy lawyer can help you file for bankruptcy so that you can avoid slipping deeper and deeper into debt. Filing for bankruptcy is a difficult decision but it gives you a chance to start over. Consulting with a knowledgeable lawyer can make the bankruptcy process easier to handle.
Why People Get Into Debt
Some people have this misconception that people get into debt because they are careless with their finances. But the truth is that circumstances that are beyond your control can cause you to slip into debt. For example, a recession can lead to many people to lose their jobs causing them to be unable to repay their debts. When people lose their jobs they sometimes use credit cards to remain afloat, but before they know it they can incur credit card debt totaling tens of thousands of dollars. Your Katy bankruptcy lawyer can look at your situation and advise you on the type of bankruptcy you need to file. Individuals in debt can either file a Chapter 7 bankruptcy or a Chapter 13 bankruptcy.
Debt Relief Through Chapter 7 or Chapter 13 Bankruptcy
You debts can be discharged if you file for a Chapter 7 bankruptcy or Chapter 13 bankruptcy. Filing for bankruptcy can also stop the collection efforts of your creditors which usually come in the form of threatening letters or phone calls. Filing for bankruptcy can also protect property such as your house or car from getting repossessed. To file for a Chapter 7 bankruptcy you have to pass the means test.
A Chapter 7 bankruptcy involves a trustee selling some of your assets and using the proceeds to pay some of your creditors. Trustees focus on your tax refunds and your non-exempt property. After the liquidation all remaining debt is cancelled or eliminated. People who have a regular income are eligible for a Chapter 13 bankruptcy. Unlike a Chapter 7 bankruptcy, you have to create a repayment plan when you file for a Chapter13 bankruptcy.
Filing For Bankruptcy Has Benefits
The first benefit is the automatic stay that takes effect when you file for bankruptcy. This immediately stops your creditors from suing you or engaging in any further collection actions. That means you no longer have to worry about threatening phone calls or letters or repossessions. Another benefit is that you may not have to pay all the debt you owe when you file. For example, if you file for a Chapter 7, you no longer have to pay the remaining amount once all the non-exempt property has been sold. However, apart from losing some of your property, your credit score also suffers when you file for bankruptcy. So it is important to consult an experienced Katy bankruptcy lawyer to determine whether filing for bankruptcy is appropriate for you or not. Your lawyer can also help you get your financial affairs in order after you file for bankruptcy.
How long does it take to file bankruptcy?
Difficult question to answer without knowing more about your situation. The best answer available is that most clients find the process to be less painful, less daunting, and faster than what they were imagining in their mind. Give us a call for a quick consultation, let us know the details of your situation, and we will do our best to streamline the process as much as legally possible.
Will my credit be ruined forever?
We've had to address this particular fear with each client. The bottom line is that bankruptcy lawyers help people. We are here to help. We help you get back on your feet. We help to protect your financial future. So many clients are shocked by how this process helps, how their fears were a bit unfounded. Give us a call. We can help.
Will I lose my house?
Without knowing more about your situation, the best answer available is...Probably not. Keep in mind that the bankruptcy legal system was established to protect you, to help you, to get you back on your feet. Give us a call and we can explain process to you better.