6 Things You Need to Know About Dallas Bankruptcy

June 30, 2010

If you’re unsure of where to start in filing Texas bankruptcy, this blog guide will give you a quick education. The focus is on how to get help for Dallas residents, but, though each city is unique, the general rules are the same for all Texans.

You Need a Lawyer
Your first step in filing Dallas bankruptcy is to hire a lawyer. There are many bad things said of lawyers – they’ll spend a few hours on your case and charge you thousands; they’ll take no action on your case and delay it – but it depends on who you hire. The owners of this blog are professionals in Texas bankruptcy law. It’s easy to hire those who promise big results for a small price, but remember this is a business. You need a lawyer who charges reasonable rates, who has experience, who will spend a reasonable amount of time on your case, and who’ll take action and not delay your case.

You Need Time
Before you take action, you need to set aside time to go through this case. Why? Bankruptcy is a complex field – and you need to understand your options in order to file successfully. To put it another way, if you go into a job interview when you’ve been out of work for 2 years, you don’t just wing it. When your financial future is on the line, start asking questions early.

You Need Action

In many cases, those who file wait too long in making certain decisions. This can be hiring your lawyer, choosing what form of bankruptcy to file, stalling on filing while your mortgage payments fall behind, or actually spending money you don’t have. Let’s take one of those and go further. If you wait too long to file bankruptcy, and you have a home in danger of foreclosure, once the files are in you are going to lose the home in most cases. If you take action, contact a Dallas bankruptcy lawyer, and file, this problem is quite often solved.

Know The Rules
Are you eligible for Texas Chapter 7 or Chapter 13 bankruptcy? You need to know this immediately. This blog highlights on many occasions the eligibility requirements for Chapter 7 and Chapter 13 bankruptcy – each are unique for Texas residents, and depend on your income and current debts.

Know Your Rights with Creditors
If creditors are harassing you, know your rights. There are options other than filing bankruptcy when it comes to stopping creditor harassment, but bankruptcy is one effective way to end it. If you file bankruptcy, simply tell your creditors that. If they call again, or continue calling, refer them to your lawyer. If, on the other hand, you don’t want to file bankruptcy, you can write the creditor a letter asking them to stop contacting you.

Know There Are Other Options
In some cases, filing a Dallas bankruptcy may not be in your best interest. And a good lawyer will tell you that. There are times when you have too much too lose, you’re not eligible, or you can solve your financial problems in other ways. Just remember that bankruptcy can be a very effective option for eliminating debt, keeping major assets like a home and car, and gives you a fresh start financially.

Know Your Rights to File Bankruptcy

June 28, 2010

Bankruptcy isn’t dinner table conversation, water cooler talk at work, good to talk with the spouse about, or proper to speak to children about. Well, sometimes it just seems that way. That’s a shame, because although filing bankruptcy has immense benefits, it seemingly creates a stigma of either not being able to handle money or even worse having to ask for financial help from others. This is all wrong. Your rights, the reason you pay taxes,the reason you work – these make  it clear bankruptcy is a good option. You have a right to file if you’re a U.S. tax paying citizen. If you work, be it at home or at in day job, you also have rights. You may make mistakes. You may not pay your bills on time. This does not mean you are a bad person or necessarily terrible with money.

Texas bankruptcy is all too often kept a secret, or worse, not filed soon enough. It’s common for people to avoid the issue for weeks if not months longer than they should. Why? Because sometimes it’s like admitting defeat – getting fired from the job of handling your own finances. It’s quite common for people to stall on this key issue until it’s too late. The most important thing to be said is, when it comes to bankruptcy, making the decision soon and with guidance is the best step you can take.

You do not always have a right to file Chapter 7 or Chapter 13 bankruptcy. For one, you might make too much money or owe too much. The great majority of Texans are eligible for at least some form bankruptcy help. Even if you make too much money to file Chapter 7 – where the income limit is based on the median Texas income – the great majority have the right to file Chapter 13.

Chapter 7 bankruptcy filing makes clear your rights. You can discharge debt, legally, and in a court of law. You need not be harassed by creditors any more. You need not pay on debts you simply cannot afford. In most cases, it is your right to keep all property or to negotiate in order to keep it. In some cases, by law your assets can be liquidated, but the majority of filers lose absolutely nothing. Why is bankruptcy like this, yet still has a stigma? All that can really be said is it’s not rational.

You almost always have a right to file Chapter 13 bankruptcy, where you pay some or all your debts in manageable installments set up by the courts. It is your right to keep the home you’ve paid on for years if not longer. It is your right to keep all other assets.

You also have the right to get legal representation. Bankruptcy lawyers quite often get a bad name by the so called “bankruptcy mills” who work on the cheap and offer little if any guidance. You can query as many professional lawyers as you want, fire one at any time, and do this at your own pace. If you can find the right lawyer, hold onto them. They may cost a bit more – it’s their right to charge more for a professional service – but it sure helps when you’re trying to save your financial future.

Filing Chapter 7 Bankruptcy in Forth Worth

June 25, 2010

It takes time to do anything worthwhile, but when it comes to filing for bankruptcy, time is money. If you want to discharge debts, you may fear losing assets. They’ll take your home and car, you’ll be unable to get a new mortgage or loan, and your bank account will quickly shrink, right? Even worse, how can you pay  a lawyer when money is the problem?

If you file in Fort Worth, Texas, Chapter 7 bankruptcy is an effective way to discharge debts, to save time and money, and to keep your assets. You need not fear losing your car; in the majority of Texas Chapter 7 bankruptcies the filers lose nothing. You will have a hard time getting a new mortgage or loan immediately, but if you start rebuilding your credit it won’t be long before you can. And if you hire the right Fort Worth bankruptcy lawyer, you won’t be overcharged.

So how do you start?

The First Step
Should you file? And what about Chapter 13 bankruptcy? The first step is deciding if you can file.  You may not be eligible, for one, but you also might have some better alternatives. There are options other than Chapter 7 bankruptcy, such as filing Chapter 13. In some cases, you may not even have to file bankruptcy at all. But bankruptcy can effectively solve many debt problems in a matter of months.

Chapter 7 bankruptcy is a liquidation proceeding, where a court appointed trustee will be selling your assets to pay back debt. They sell your stuff? Yes, by law they can. As stated earlier, the great majority of filers lose absolutely nothing. If you are about to lose your home or car, you can set up a separate plan with the trustee to start paying on it; this is perfectly legal and very common.

What debts can you discharge?

The most common debts in Texas and in the whole country are medical, credit, and mortgage debts. A recent study highlighted how, surprisingly, credit cards are not the main problem. Medical debts are the most common reason for filing bankruptcy in the country. This means more people file for help not because of cards of plastic or homes, but for rooms at hospitals and expensive medications. It makes sense: millions of U.S citizens have no health insurance. It’s unfortunate, but you can discharge tens of thousands of debt you simply cannot afford by filing Chapter 7 bankruptcy.

Are you eligible?
Unfortunately, while most Fort Worth residents are eligible for Chapter 13 bankruptcy, the same residents may not be eligible for Chapter 7. It’s because you make too much money in most cases. With Chapter 13, unless you have hundreds of thousands in debt, you are eligible. If you make more than the median Texas income for 2010, you are not eligible for Chapter 7.

1 Person – Annual Income Less Than $38,801
Family of 2 – Annual Income of Less than $55,660
Family of 3 – Annual Income of Less Than $59,011
Family of 4 – Annual Income of Less than $66,145
Add $7,500 in most cases per any additional family members.

Is Chapter 13 better?

Chapter 13 bankruptcy is less common because it means you’ll be paying off on debts, not eliminating them. It’s benefits include many of the same as Chapter 7, though it’s better if you fear foreclosure. It’s different, not better or worse.

You should consult with a Forth Worth bankruptcy lawyer before you make any big decisions. Most will be affordable, give you a free consultation, and clearly show you their experience.

How Much Does a Texas Bankruptcy Lawyer Cost?

June 23, 2010

Finding a lawyer is tough enough, but actually paying a Texas lawyer with experience can sometimes be difficult. You are filing bankruptcy to save money and assets, not spend money and lose assets. Sometimes you may think hiring a lawyer is not feasible. In all cases, it’s more than worth it, and they may charge less and save more than you might think.

What? A bankruptcy lawyer saves you money? Yes, but you need to hire the right one first.

How to Hire a Texas Bankruptcy Lawyer
Looking online may seem risky, but even though many lawyers have no website, it does not mean the ones who do are any less experienced. In fact, you can look directly at this experience online 24/7. Some have blogs like this one, some show their relevant experience, and most will give you a ball park estimate on how much you will have to pay in order to file for bankruptcy.

How much does Texas bankruptcy cost?

Technically, the only differences between a Texas bankruptcy and one from another state is in terms of eligibility, lawyers, and what court you file with. Most of the rest is very similar, as bankruptcy is a federal code, not solely state run.

Let’s get back to the main point. A Chapter 7 bankruptcy will cost you  $299 to file with the court, and the average Texas lawyer will charge you about $1,000-$2,500 for this bankruptcy. There are some big differences in those price ranges – some lawyers go lower still and some even go higher – but it depends on the actual complexity of your case. So if you hired a Texas lawyer for Chapter 7 bankruptcy, it might cost you a total of $1,800 to file. Now, look at the benefits of Chapter 7. You can discharge the majority of your debts, including tens of thousands in medical, credit card, and mortgage debt. If you are considering bankruptcy, you likely cannot afford to pay on all or at least some of these debts. The more you owe, the bigger the benefit. If you can discharge $10,000 for a fraction of that, the benefits are quite obvious.

If you file Texas Chapter 13 bankruptcy, the court fee is $274 with the court, and about the same amount of lawyer fees, ranging from $1,000-$2,500. Now, in this case you are not eliminating your debts; you’re paying on them in an affordable manner over 3-5 years. So it might cost you $2,000 to file Chapter 13 and hire an experienced Texas lawyer, but once you see the benefits the value is clear. If you fear your home is going into foreclosure, a property worth $100,000 with a mortgage you’ve been paying on for years, with Chapter 13 you can stop any foreclosure proceedings before it even reaches court. You can also create a payment plan for other debts, such as credit and medical, over a longer and more affordable period.

So we got some ball park estimates on filing for bankruptcy. While not cheap, think of filing bankruptcy in any form as putting money in the bank, not taking some out. And think of your Texas bankruptcy lawyer not as someone who you write checks, but as someone who can help save your home and save you money.

What Happens in Northern District of Texas Bankruptcy Court?

June 21, 2010

Let’s get right to the point. You have to file for bankruptcy, you’re in Texas, and you’re wondering where to go. It depends on what part of Texas you are in. For the Dallas/Fort Worth areas, you’d be filing in the U.S. Bankruptcy Court in the Northern District of Texas. It’s simple to find out where to go, but what happens once you enter the court room can be confusing. This post guides you through the steps of filing Chapter 7 or Chapter 13 bankruptcy in Northern Texas.

What Texas Chapter 7 Bankruptcy Is
Chapter 7 bankruptcy is chosen the majority of the time: about 75% of filers choose Chapter 7. This is because you quite often gain the most for the least loss. It’s a liquidation proceeding where your debts – such as credit card, medical, and mortgage debt – are discharged. It’s more than worth it. For the price of an experienced Texas bankruptcy lawyer, a nominal filing fee, and a few days work, you can discharge thousands if not tens of thousands in debt.

What Texas Chapter 13 Bankruptcy Is
Chapter 13 bankruptcy is used less, about 25% of the time. However, it can be very beneficial, and in some cases you have no other options. Under new Bankruptcy Code created several years ago, it’s been more difficult for individuals and families who make better than average income to file Chapter 7. For Texas bankruptcy, you’d need to be under the median income. If you are over, you can still file Chapter 13. This means you are not eliminating debt; you are paying most if not all of it back over 3-5 years in installments you can afford. The best part is you lose absolutely nothing this way, including a home with a mortgage you’ve been paying for years.

What Happens in Northern District of Texas Bankruptcy Court

If you file Chapter 7, you rarely appear in Texas Bankruptcy Court; it’s more common in Chapter 13 bankruptcy. You do have what’s called a 341 meeting, where you, your creditors, and your trustee will meet to go over your discharge. This is a very simple process. Quite often your creditors fail to appear, and as long as your documentation is correct and you hire a lawyer it rarely goes bad.  In both cases, hiring an experienced lawyer is essential. For Texas residents, you have many options for legal counsel, but be sure you hire not just because of price; hire someone with experience.

What Your Lawyer Does
Your lawyer’s job is to make this entire process easy for you. If you file Chapter 7 or Chapter 13 in Texas Bankruptcy Court , your lawyer will be doing most of the work before, during, and after court. He or she will go over your documents, make sure they are correct, and submit them. A lawyer’s job in bankruptcy court is short, but without it you could lose the decision.

The Decision
Most bankruptcy filings are successful. What can be time consuming is rebuilding after. However, once you discharge debt or save your assets, rebuilding will be much easier.

Filing Dallas Chapter 13 Bankruptcy

June 19, 2010

If you file bankruptcy in Dallas Texas, you would go to the Northern District of Texas. But before you do, there are some things about filing Dallas bankruptcy you should know, especially if you plan on filing for Chapter 13. This post can help.

Eligibility for Texas Chapter 7

You may also be eligible for Chapter 7 bankruptcy. Most all citizens are eligible for Chapter 13, unless you have hundreds of thousands in debt. If you want to file Chapter 7, you must be be below the median income for the state. Here are the numbers.

1 Person – Annual Income Less Than $38,801
Family of 2 – Annual Income of Less than $55,660
Family of 3 – Annual Income of Less Than $59,011
Family of 4 – Annual Income of Less than $66,145
Add $7,500 in most cases per any additional family members.

If you make less than these numbers, you may consider filing Chapter 7. It can be very helpful in cases where you have a lot of debt you simply cannot afford, such as credit, medical, and mortgage debt.

Why Chapter 13?

If you’re a Dallas resident considering personal bankruptcy, you may wonder why you would not choose Chapter 7. Clearly this form can help in ways Chapter 13 cannot. In some cases you are not eligible. In others, you do not want to lose your home. Dallas Chapter 13 puts into motion a plan for keeping all your assets. If you fear foreclosure on your home, Chapter 13 is a far better option in most cases (though you can set up a payment plan for your home with Chapter 7 by working with your trustee). What happens is the moment you file, a judge will put an “automatic stay” on your home, stopping any foreclosure proceedings. If you file early enough, before the papers are filed, you don’t just stall the foreclosure: you can completely stop it.

Also, if your problem isn’t credit or medical debt, Chapter 13 can be easier. It’s a 3-5 year plan where you pay back debts, but these are designed to be affordable. If you have no job and little to no income coming in, Chapter 7 is better. If you have a job and some income, a Chapter 13 debt repayment plan can be very beneficial. It just depends on the kind of debts and assets you have.

How do you file?

You typically hire an attorney first, then file with the court. The fee for filing Chapter 13 bankruptcy is nominal, $274. Lawyer fees cost more, but are designed to be affordable. After all, you’re not filing bankruptcy because you’re rich. Most Texas bankruptcy lawyers charge from $1,000 to $2,500 to handle a case. This comes with many benefits. They can help you fill out documentation, successfully submit to the court, represent you in court, help with your debt repayment plan, stop creditor harassment, give tips on keeping all your assets including your home, and also advise you on how to avoid future bankruptcy.

The First Step

Are you ready to file for Chapter 13 bankruptcy? Unsure if it’s right for you? It takes some time to make the decision. The important thing is to not make it alone. You can consult with an experienced Dallas bankruptcy attorney today to see if Chapter 13 is best for you.

Making the Texas Bankruptcy Decision

June 17, 2010

Still not sure if filing bankruptcy is for you? Clearly there are many ways to look at it, advantages and disadvantages to filing, and the fear it can bring. For one, bankruptcy is a solution, a tool designed to help. It can be a life changing event, but for the good. For one, some think that by filing, you’re giving up all your assets, you’re ruining your credit, or even worse, that you’ll never be free of it. There are many other myths too, but remember the earlier point, that bankruptcy is a tool, and you can be free of this.

This post will help you make decisions beyond the myths, to help your finances and give you a fresh start.

Myths of Bankruptcy
For Texas bankruptcy, common culprits are bills, debts, and cards made of plastic. The myths abound. You won’t have to pay back taxes or alimony (you will). Bankruptcy will ruin your credit (it won’t). That you’ll lose all your assets with Chapter 7 (you rarely lose anything). That you won’t be able to afford to pay back debts, even with a Chapter 13 repayment plan (many can). Bankruptcy won’t give you a bad name, won’t make it impossible to get a loan, and you certainly won’t lose all your assets. Remember this is a tool, and over 1 million use it every year to successfully discharge debt, save property, save money, and save time.

Advantages of Bankruptcy
This all depends on the form of Texas bankruptcy you want to file. We go over Chapter 7 and Chapter 13 many times on the Higgins and Associates blog. The biggest benefits for each is simple. Chapter 7 can discharge pretty much all your debt. Chapter 13 can pay it back, but save assets like your home from being lost.

There are other benefits. In both forms of personal bankruptcy, you can be free of creditor harassment. In both forms, you can successfully rebuild your credit; if it’s already bad, you can get a fresh start building it by handling your credit correctly. And if you choose to file Texas personal bankruptcy, you need not live in fear of the repo-man or your home being taken.

Disadvantages of Bankruptcy
Bankruptcy will stay on your credit for 10 years. It will be hard to get a major loan for some time, such as a new mortgage, but it’s more than possible. You won’t discharge all debt with Chapter 7, and sometimes your creditors can appeal your filing. For Chapter 13, you are still liable for debts: if you cannot pay at least some amount, you may start running out of options.

Making the Choice
If you need help making the choice, you don’t call your creditors. You call someone who can help, like an experienced Texas bankruptcy attorney. You first should research how bankruptcy works, what you’re eligible for, what debts you can discharge, how long the process takes, and what’s expected from you if you want to keep your assets. These decisions are better made with an educated mind.

Asking for Help
Asking for helping is always tough, but when making a decision on bankruptcy, it’s simply a must. You cannot file for Texas bankruptcy without some guidance of a professional. It’s worth the time and money to search for and hire a lawyer, because he or she will actually save you from major mistakes, and save you money by making the bankruptcy work for you.

Now that you’ve finished, it’s time to make that big choice. Remember not to make it alone.

How Much Does Texas Chapter 7 Cost?

June 14, 2010

You’re going to file bankruptcy because you have little to no income, so how can you be expected to pay for a lawyer and pay court fees?

Well, you’re not always filing bankruptcy because you’re flat broke. Sometimes you do it simply to consolidate, if not completely eliminate, debt which will take all the money out of your pocket to pay creditors. If you are low on cash, you might wonder if you can do this whole process yourself. Even if you have money, you may wonder exactly how much this process will cost you. Let’s find out.

Texas Chapter 7 – Costs
To file for Chapter 7 bankruptcy anywhere in the country, you will pay a court fee of $299. Chapter 13 will cost you $274.

Now, hiring a lawyer is where the price can seem high. A typical Texas Chapter 7 case will cost from $1,000 to $2,500. That may seem quite high, but because the benefits themselves are so high, it’s more than worth it. A Texas bankruptcy lawyer saves you time and money, does not take it. This is usually a flat rate for all filers. Also, many lawyers are willing to negotiate payment, if not also setting you up on a payment plan. Few can just pull $2,000 out of the bank, but if you can eliminate $20,000 in debt, that’s a whole different story.

Benefits of Texas Chapter 7
Most are eligible for Chapter 7 bankruptcy, most can discharge the majority of their debt, and you likely won’t lose any assets. Many filers believe they might lose their car or home. This does occur, which is why a lawyer handling your case is more than worth it. With an experienced lawyer, you can stop a foreclosure on your home, set up a payment plan on your home and car, and keep most other assets.

Say you have $20,000 in credit card debt; you can discharge all this money for a fraction of the total. Or say you have over $100,000 in medical debt from when you were hurt and did not have insurance; in this case, Chapter 7 is you best option and the fees seem minor.

Chapter 7 bankruptcy allows for you to be free of most debt, and there is no fine print. You can in some cases lose assets, and certain forms of debt cannot be included, but really it can be a life changing decision.

Can you do it yourself?
Technically you could operate on yourself, but few try that. Yes, you can handle a bankruptcy by yourself, sometimes even with success. It just depends on your situation. In some cases, it’s very understandable to forgo a lawyer, but when your entire financial future is on the line, you might want to be careful. The benefits of hiring an experienced bankruptcy lawyer are known the the thousands who successfully file in Texas every year.

How should you hire a Texas bankruptcy lawyer?
Hiring an experienced Texas bankruptcy lawyer is the first step in filing Chapter 7. If you want to discharge the majority of your debt, protect your assets, and be free of creditor harassment, it’s a wise choice. If you’re in the Dallas/Fort Worth area of Texas, we can handle your case.

Property You Can Keep After Texas Bankruptcy

June 11, 2010

Common bankruptcy questions we hear include worries on losing major assets such as a home and car. You’re right to be concerned about these things, as you can lose some assets when filing bankruptcy. However, most bankruptcy filers lose absolutely nothing.

You have to look at what got you into this situation, what want to keep, and what you’re willing to lose. Technically, you can keep major assets if you can afford them. You can hold on to your home, vehicle, and valuable assets such as jewelry, even in a Chapter 7 bankruptcy. First let’s go over what you can legally keep, what you may lose, and then how to keep the most assets.

What You Can Keep
If you’ve lived in Texas all your life, or even just a few years, you are legally able to keep the majority of your assets in a Chapter 7 bankruptcy. Chapter 7 is where you file to discharge debts, with the point being some of your assets may be sold to pay back creditors; in other words, you liquidate items to pay debts. Again, it’s rare you actually have assets sold, but a trustee appointed by the bankruptcy judge can do precisely that by law.

Exactly what can you keep?
-You can keep any equity you have in your home, as well as all home furnishings up to $30,000.
-You can also keep jewelry and heirlooms up to $7,500.
-Bicycles, guns, and sporting equipment are usually exempt.
-You can keep your car usually, sometimes more than one if multiple family members have cars and depend on them.
-Social security benefits are always exempt, as are retirement accounts.

By law, child support and back taxes cannot be discharged in personal bankruptcy. If you’re hoping to discharge these debts, Chapter 7 simply will not work. You are legally bound to pay them. But as you can see, the majority of your major assets can be exempt.

Advantages of Texas Chapter 7
Most are eligible for Chapter 7 bankruptcy, but if you make a lot of money, you may be required to create the debt repayment plan involved in Chapter 13. Chapter 7, as earlier noted, discharges debts and is far more common than Chapter 13. You can in most cases keep your home. If any assets such as your car or home are not exempt, you can legally pay the court appointed trustee in order to keep it; that means you can pay on certain debts. You just have to have the money do so.

Chapter 7 bankruptcy has the most direct effect of any bankruptcy filing. It can eliminate the majority of your major debts and give you a fresh start. It only takes a few months to go through. And an experienced Texas bankruptcy attorney in your area can help with topics such as exempt and nonexempt assets.

Advantage of Texas Chapter 13
Chapter 13 is less effective in removing your debt obligations, but you can use it to save assets. In some cases, Texas filers who make more than the state average are not eligible for Chapter 7. Don’t worry: Chapter 13 has its own advantages. It’s the best way to stop a foreclosure before it happens. As long as no foreclosure papers have been filed, you can file Chapter 13, a judge will put an automatic stay on your home, and you can start making more affordable payments on it. It’s the same with all your assets. Nothing will be sold. You will create a debt repayment plan in order to make these debts affordable.

Keeping Assets – The First Step
You need an experienced Texas bankruptcy attorney to look over your situation. He or she can go over eligibility, exempt and nonexempt property, help you keep assets with Chapter 7, and help you save your home from foreclosure with Chapter 13.

Choosing Forms of Personal Bankruptcy in Lake Worth Texas

June 9, 2010

Lake Worth may be that little Texas city compared to Dallas, but when it comes to financial problems, it really doesn’t matter. Unfortunately, Lake Worth bankruptcies have been high in recent years. Recent research reports that the median income for Lake Worth residents is at about $40,000 a year. This is important because of the rise in bankruptcies and nationwide in past years.

You lose your job, you don’t have insurance and get a major injury with medical bills looming, or your home is about to go into foreclosure. What do you do next?

For personal bankruptcy, your options are Chapter 7 or Chapter 13. If you want to eliminate thousands in debt because you have little to no income, Chapter 7 is wise. If you have an income but want to rework your payments, Chapter 13 is very smart. Let’s go into the details even more.

Chapter 7
Chapter 7 bankruptcy is a liquidation. You file with Texas bankruptcy court, paying the fee of $299, and then a trustee is appointed to handle your case. This trustee will be in charge of liquidating some if any nonexempt assets you have. That means the trustee will sell your possessions to pay back your creditors. In most cases, you don’t lose anything.

You can discharge much of your debt, including credit card, mortgage, and medical bills. You cannot discharge taxes, alimony, child support, and time other debts.

Chapter 7 is smart if you have little income and sometimes if you have little assets. It only takes a few months to go through,and you get a fresh start financially. The majority of Lake Worth bankruptcies are Chapter 7.

Chapter 13
Chapter 13 bankruptcies are used less in Lake Worth and nationwide. About 25% of personal bankruptcy is Chapter 13, while 75% is Chapter 7. Chapter 13 is a debt repayment plan, not a discharge of debt. For example, if you have $5,000 in credit card debt, you will be reworking payments, but still paying for them. That’s the main reason more Lake Worth residents file Chapter 7. However, Chapter 13 can save your home from foreclosure; Chapter 7 cannot.

It works like this. If you miss a few payments for your Lake Worth home, and foreclosure is on the horizon, you can file Chapter 13 and if successful a judge will put an “automatic stay” on your home. The lender cannot foreclose your property. If you’ve owned this home for years and love it, and if you’ve put a lot of time and money into it, Chapter 13 can effectively save it.

Credit Cards
On the other hand, if credit and medical debt is your main problem, Chapter 7 is better. It can also discharge mortgage debt, but you’ll typically lose the home in a matter of months unless you can afford to pay on it separately.

If creditors are harassing you night sand day, both forms of personal bankruptcy can effectively stop it. So can an experienced Lake Worth bankruptcy attorney.

Lake Worth Bankruptcy Attorney
Does some of this sound like a textbook on legal information? That’s because it’s complicated to file bankruptcy. You need to hire an Lake Worth bankruptcy attorney to answer questions, solve problems, and help choose between Chapter 7 and Chapter 13.

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