Our law firm understands that bankruptcy can become stressful and overwhelming which can make decision making involved in this process more difficult to do. These financial difficulties can happen to anyone at any time, as there are so many ways a person might end up reaching bankruptcy. One situation can lead to an out of control spiral quickly. Bankruptcy lawyers are here to alleviate this awful stress and lead you to a fresh new start. If you are thinking about, or currently struggling with a bankruptcy, call our Texas law firm for a free consultation. You do not have to handle your bankruptcy alone; bankruptcy lawyers are here to assist you in every step of the process.
It is important to understand before filing for bankruptcy that it is a complex legal process that can quickly become confusing if you are not familiar with Texas laws regarding bankruptcy. A bankruptcy attorney will ensure you are staying protected.
Types of Bankruptcy in Beaumont, Texas
Chapter 7 Bankruptcy
This type of bankruptcy is ideal for those with a large amount of debt. A chapter 7 bankruptcy does not require a repayment plan, a debtor has someone who is responsible for all the nonexempt assets and selling them. The money from selling these assets are given out to the creditors. The person filing will not have to pay any of the remaining debts and may keep their exempted assets. A person may qualify for Chapter 7 bankruptcy when they pass the means test. This test goes through and reviews all of the areas of your income to ensure that you are below the average income of your state, Texas. If you find that you are below this average income of your state, chapter 7 Bankruptcy is most likely what you are qualified for. This begins with filing a petition with bankruptcy court and when this done, it should end all attempts of debt collection towards you. The amount of time this process of chapter 7 bankruptcy takes will be vary but on average it takes about four months to compete. Filing for chapter 7 bankruptcy allows a person to walk away from their debt and to begin financially with a fresh start. As said before, you will also be ending all attempts of collectors trying to contact you for payment. If you have further questions regarding this process, our firm would be happy to answer them during your free consultation. If you are still on the fence about filing for bankruptcy, make sure you have had all your questions answered as this is a complicated and long process you will need to be prepared for. Your lawyer will guide you in the best possible direction.
Chapter 13 Bankruptcy
This type of bankruptcy allows for people and small businesses that are in debt to receive a bankruptcy protection and not have to lose their assets. Chapter 13 bankruptcy is also often referred to as “reorganization” or the “wage earners plan” bankruptcy. This type of bankruptcy is the most common among those who are looking to avoid home foreclosure. Debtors create a plan a fraction of their debt over the span of up to five years. When this plan has come to end, the remaining debt this person or small business will be removed.
To qualify for a chapter 13 bankruptcy, an online or by the phone credit counseling program approved by the court. Documentation must be submitted detailing your current finances that includes all of your debts, all of your assets, your current income, expenses, and other information. A repayment plan must also be made and submitted by the person filing for chapter 13 bankruptcy. This plan needs to specify how much you are paying to the collector and how frequently. A bankruptcy lawyer can assist you in creating an appropriate repayment plan that works best for you. Once this payment plan has been established and submitted, the reaming amount of debt will be removed. Ask a bankruptcy attorney upon consultation if you are eligible for this plan.