Your Options For Bankruptcy Filing In Denver And Fort Worth, And The Benefits Thereof |
Posted: June 26, 2023 |
If your debts have become unmanageable and you find it hard to repay them, then bankruptcy can provide you with a legal recourse to give a fresh start to your financial situation. Bankruptcy can provide you with a timeline for the repayment of no dischargeable debts over time and repay secured debts. Bankruptcy proceedings start by filing for it by the debtor, wherein all of the debtor’s assets are measured and evaluated which can be used to repay a portion of the outstanding debt. Bankruptcy is handled by the federal courts, and rules are outlined in the U.S. Bankruptcy Code. Bankruptcy does not always write off all debts, as creditors still have the opportunity for repayment. If you are in a situation wherein you think that bankruptcy would be the best course of action, or wondering whether you should take this course, you can consult specialist bankruptcy lawyers, such as the ones available with Recovery Law Group. In theory, bankruptcy benefits the overall economy by allowing people and businesses to gain access to credit. All bankruptcy cases in the US go through federal courts and are often handled by a trustee. If you are advised to file for bankruptcy by the bankruptcy lawyer Denver in Colorado, then in most cases it would be filed under Chapter 7, or Chapter 13. About Chapter 7 bankruptcy Under Chapter 7 bankruptcy, you will be allowed to dispose of unsecured debts such as credit card balances and medical bills. As your bankruptcy lawyer Denver will tell you, in order to qualify for Chapter 7 bankruptcy, you must be able to pass a means test, which is designed to determine whether you have the means to repay a portion of your debts. During your bankruptcy consultation Fort worth in Texas, you may be advised to file for bankruptcy under Chapter 7 in case you: Are overwhelmed by debts and there is no way to repay Have earned less than the median income level in the state during the last six months Have little or no disposable income Don't have many assets Have a low credit score Under Chapter 7 bankruptcy, many debts can be forgiven, like unsecured personal loans, past due utility bills, and obligations under leases and contracts but some debts cannot be discharged under Chapter 7 bankruptcy, such as secured debts, child support and alimony, and most tax debts. About Chapter 13 bankruptcy In case your bankruptcy lawyer Denver suggests you to file for bankruptcy under Chapter 13, you will be allowed extra time to pay your debts over a period of 3 to 5 years under a court-ordered plan, and most of your personal loans, credit card bills, and medical bills will be discharged. However, unsecured debts, like alimony, child support, and student loans must be repaid. The bankruptcy is intended for individuals and couples with sufficient financial resources to make full or partial repayment to creditors over time. As you may be told during bankruptcy consultation Fort Worth, you may be eligible for Chapter 13 bankruptcy if you have regular income, and submitted federal tax returns for the four years preceding your bankruptcy filing.
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