Meeting life's financial obligations can prove to be difficult for just about anyone at some point in life. Responsibilities like mortgages, car payments, student loans, and credit card debts are necessary expenses that must be paid each month. When these bills start to pile up and you find yourself struggling to make ends meet, it may be time for a new approach to managing your debt and starting a new path toward financial wellness.
One effective way to begin this new path is by filing for bankruptcy. Although the concept of bankruptcy comes with some stigma, it is important to remember that this process has been specifically designed to help those who are struggling financially. Many people have already found success in filing for bankruptcy, giving them the opportunity to hit the restart button and seize a second chance to focus on their future financial goals.
It is important to speak with a Stephenville family law and bankruptcy attorney if you are considering filing bankruptcy. These legal professionals can help you understand your options and guide you through the bankruptcy process. Attorneys can also provide advice on rebuilding your credit after bankruptcy.
When you are facing the prospect of filing for bankruptcy, it is important to secure the services of a trusted attorney who will fight for you and your best interests. The Stephenville bankruptcy lawyers at Steele Law Firm are dedicated to providing top-notch service and representing clients experiencing a significant financial burden.
We understand that each client has different circumstances and needs, which is why we offer personalized consultations to discuss your situation. We will then help you navigate the best course of action, whether that means filing for bankruptcy or beginning a different approach. Working with a professional attorney who understands bankruptcy law is critical for making the best decision for your future.
One of the most common questions we hear from clients is whether filing for bankruptcy will destroy their credit score for life. The answer to this question is very straightforward. If you are granted bankruptcy relief, your credit score will not be ruined forever. Many people find that their credit score rebounds within a few years of filing for bankruptcy. In fact, this recovery often proves to be much quicker through bankruptcy than if they had continued to struggle with their debt. However, it is important to work with a bankruptcy attorney to choose the appropriate filing.
For example, your attorneys may advise you to file for Chapter 13 bankruptcy. Chapter 13 bankruptcy is also known as reorganization bankruptcy and allows the filer to propose a repayment plan to their creditors. This type of filing can be extremely helpful for those who have a steady income and want to keep their property. Chapter 13 bankruptcy allows you to create a repayment plan that will satisfy your creditors over a three to five-year period. People who qualify for Chapter 13 bankruptcy will likely see an improvement in their credit score after completing the repayment plan.
Alternatively, if you choose to file for Chapter 7 bankruptcy, you will be required to create a plan that can include payment plans, debt restructuring, and liquidation. This type of bankruptcy is like the Chapter 11 bankruptcy used for businesses but can be used by individuals that have a domicile or residence as well. Chapter 11 bankruptcy is often known as "rehabilitation" or "business reorganization" bankruptcy and can help businesses keep their doors open and hardworking employees on payroll.
Speak with a Stephenville bankruptcy attorney to learn more about the different types of bankruptcies available.
When you file bankruptcy in Texas, you will experience one of two distinct types of debt discharge. Discharge can be categorized as complete or partial. A complete discharge means that all your eligible debts are discharged, and you no longer have any legal obligation to pay them. A partial discharge means that only some of your debts are discharged and you still have a legal obligation to pay the remaining debts.
Which type of discharge you will receive depends on a number of factors that can be discussed with your Stephenville bankruptcy lawyer. The value of your assets, the type of debts you have, and how much money you make are all considered when the court decides which type of discharge you will receive. After discharge, the associated debts are notated on your credit report as discharged, and your balance owed will return to zero.
Another common question we often hear from clients is what will happen if they don't file for bankruptcy. The answer to this question can vary greatly depending on the situation. If you are unable to pay your debts as they come due, your creditors will eventually file a lawsuit against you to obtain the owed amount. If you are served with a lawsuit and do not respond, the court will issue a judgment in favor of the creditor. This judgment will allow the creditor to garnish your wages, levy your bank account, or place a lien on your property. In some cases, the creditor may even take possession of your property.
If you are unable to pay your debts and do not file for bankruptcy, the creditor may eventually seek to have you declared bankrupt. This is a process that is known as involuntary bankruptcy and can be initiated by a creditor, the IRS or other governmental agency. If you are deemed bankrupt without filing for bankruptcy relief on your own accord, you may be subject to harsh penalties. To avoid these penalties, it is important to speak with a Stephenville bankruptcy lawyer who can help you determine your options much earlier in the process.
Filing for bankruptcy is a major decision that should not be taken lightly. However, it can be the best decision for many people who are struggling to pay their debts. If you are considering bankruptcy, Steele Law Firm can help. We can help you assess your options and make the best decision for you and your family.
If you’ve ever imagined a life without crippling debt, that vision can become a reality with the help of a Stephenville bankruptcy lawyer from our firm. Contact Steele Law Firm to schedule a consultation.
