Bankruptcy attorneys in Austin, TX to help get you get finances back on track |
Posted: December 6, 2023 |
Financial difficulties can happen to anyone at any time due to many reasons, like job loss, mounting medical bills, excessive credit card debt, or mismanaged finances. While earlier people used to suffer in silence and bear creditors' harassment, the situation has changed altogether with the coming of US Bankruptcy Code in the year 1978. Since then, it has served as a legal tool to millions of Americans who have gone through financial distress at some time in the life. Bankruptcy is no longer a taboo, and it provides you with legal recourse to control your finances and get a fresh financial start.
If you have a large amount of debt that you are unlikely to repay despite your sincere efforts, filing for Chapter 7 bankruptcy Forth Worth, Texas, is something that your bankruptcy lawyer may suggest to you. This liquidation bankruptcy will discharge most of your unsecured debts, including medical bills, personal loans, and credit card bills. The bankruptcy court will issue a temporary stay on creditors’ collection activities. There will also be a cessation on wage garnishments, and activities like evictions and repossessions will be temporarily stayed. However, the court may sell your non-exempt property under Chapter 7 bankruptcy Forth Worth in order to pay back your creditors.
Some debts are not dischargeable However, some debts are not dischargeable under Chapter 7 bankruptcy, which include child support, alimony, fines and penalties, and most of the taxes. Student loans are also difficult to get discharged under Chapter 7 bankruptcy. When you hire bankruptcy attorney Austin, you will be required to undergo a credit counseling course by an approved agency. You will have to complete a bankruptcy petition and schedules, and other official forms. You will also be required to attend a meeting with the creditors that will give the creditors an opportunity to ask you questions about your assets and liabilities.
New credit lines are opened Once you file for Chapter 7 bankruptcy Fort Worth, an automatic stay will come into effect that will prevent your creditors chasing you down for payments. Moreover, your personal debts, and past due child support can be erased. Within one to three years, you can even get new lines of credit, however, with higher interest rates. Any future wages earned after the filing of Chapter 7 bankruptcy Fort Worth are yours to keep, and you can use them as your living expenses.
When you hire bankruptcy attorney Austin from trusted law firms like Recovery Law Group, they will evaluate your situation and suggest to you the right type of bankruptcy to file for. Like, if you are able to save to some money after your regular expenses, your attorney may suggest you file of bankruptcy under Chapter 13, wherein you will be given an extended time period of three to five years to repay your debts in affordable EMIs. This way, you will be able to chase your mortgages and prevent foreclosure also.
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