If you are considering filing for Chapter 7 or Chapter 13 bankruptcy Plano TX because your debts have gotten out of hand and you find yourself unable to pay them, there are some important questions you should ask an attorney about bankruptcy before you file:
1 – Personal Bankruptcy Lawyer Plano TX: What Is Bankruptcy And Will It Relieve Me Of All Of My Debts?
Bankruptcy is a federal court procedure that allows debtors to get out of debt either by having some of their debts discharged (cancelled) or by repaying them under court supervision, depending on the type of bankruptcy pursued. As a consumer, the two types of bankruptcy you would normally file for would be Chapter 7 or Chapter 13. If the court approves your bankruptcy, it will issue a protective order, called an “automatic stay,” that will stop most creditors from contacting you about your debt or attempting to collect your debt. Bankruptcy can help you to eliminate some, but not all, kinds of debt. Child support, alimony, taxes and student loans are not dischargeable, unless, (as in the case of student loans), you can prove that repaying the loan will cause you undue financial hardship. Additionally, any of your creditors can make an appeal to the court for repayment of any debts that you are hoping to have discharged.
2 – Personal Bankruptcy Plano TX: What Are The Differences Between Chapter 7 and Chapter 13 Bankruptcy?
Chapter 7 is often called “liquidation bankruptcy” because debtors often lose some of their property through liquidation. This type of bankruptcy is usually reserved for those individuals (and businesses) who have little or no ability to repay their debts. Chapter 13 bankruptcy is a “reorganization bankruptcy” because it allow filers to reorganize their debts and make payments on a schedule determined by the court. If you file for Chapter 13 bankruptcy, you must show the court how much income you have and how you plan to pay off your debts.
3 – Chapter 13 Bankruptcy Plano TX: Can I Choose Which Type Of Bankruptcy To File?
Chapter 7 and Chapter 13 bankruptcies have different sets of eligibility requirements that take into account income levels, previous bankruptcies, debtor fraud and more. If you meet the eligibility requirements for both types of bankruptcy, you can choose which to file, but it is always best to consult with a bankruptcy attorney before you decide. If you meet the requirements for one type of bankruptcy but not the other, then you won’t have a choice. Regardless, a bankruptcy attorney can give you up-to-date, reliable information about both Chapter 7 and Chapter 13 bankruptcies.
If you are carrying a heavy debt burden, Chapter 7 or Chapter 13 bankruptcy Plano TX can relieve you of that burden and get you on the right financial track. To find out how, call the best bankruptcy law firm in North Texas, Collins & Arnove, at (972) 516-4255. You can also visit us online at www.ntb.wpmudev.host to find out more about the types of bankruptcy available to you.
Collins & Arnove | Chapter 13 Bankruptcy Plano TX | 972-516-4255