The word Bankruptcy written on a chalk board

Once you are head over heels into debt, one option that you may consider is filing for bankruptcy. Filing for bankruptcy can be a difficult decision, and there is a lot involved, which is why it is always best to get professional advice. A Texas bankruptcy attorney can review your case and assist you in making the best choice to effectively address your individual circumstances.

Here are some common questions many people have in regards to bankruptcy:

Should I File for Bankruptcy or Not?

If you are considering bankruptcy due to creditors harassing you over petty debts, you may want to consider other options. However, if you are facing potential foreclosure, your wages are being garnished, or your vehicle may end up repossessed, bankruptcy may be able to help resolve your situation.

What Do I Need to Do in Order to File for Bankruptcy?

First, you will need to analyze the types of debts that you owe to determine whether they can be discharged through bankruptcy and figure out which items will be exempt from bankruptcy seizure. You’ll also need to complete an evaluation to see if you are eligible for bankruptcy, fill out required forms, participate in credit counseling, and resolve any secured debts.

Do I Need an Attorney to File for Bankruptcy?

Contacting an attorney is not required, however since bankruptcy law is an extremely complicated legal procedure, it is strongly advised that anyone filing a bankruptcy claim seek representation from a Texas bankruptcy attorney. A skilled attorney can give you valuable advice and help you make sure everything is filed correctly.

What Is the Difference Between Chapter 7 and Chapter 13 Bankruptcy?

Chapter 7 bankruptcy liquidates your assets while relieving you of some, if not all, of your outstanding debts. Chapter 13 bankruptcy clears some debts and arranges repayment on the remaining debts over the duration of three to five years while allowing you to retain property that you own.

How Does Filing for Bankruptcy Affect My Credit Report?

Chapter 7 bankruptcy remains on your credit report for 10 years while Chapter 13 bankruptcy only affects credit for up to 7 years. While bankruptcy can harm your credit, the impact dissipates over time.

If you have further questions, it is always a good idea to contact a Lewisville bankruptcy lawyer for professional advice. Call us today to schedule a consultation.