Bankruptcy entails a legal process, which involves either an individual or an organization that is experiencing financial troubles. Such proceedings are generally filed by the debtor. A successful execution of such a process eventually makes the debtor free from most outstanding payments and debts. However, if you are thinking to file for a bankruptcy, then you need to first go through certain very essential points. Filing a bankruptcy in Texas without proper information about the State Laws may put you in serious troubles.
Well, the first and the most important thing to do is to determine the right time for filing a bankruptcy in Texas. In most of the cases, people end up pondering about whether they should file a bankruptcy or not. There are few situations, where opting for a bankruptcy can be very beneficial for you. For instance, if you have already tried many different ways to payoff your debts, however, the creditors are not ready to wait any longer. Also, if you don’t possess enough assets to wipe out your entire liabilities, then it is better to file for a bankruptcy.
There are different types of bankruptcy in Texas. The two most common types are known as ‘Chapter 7′ and ‘Chapter 13′. Chapter 7 (also known as straight bankruptcy) is indented for those, who have a few numbers of assets or no assets at all. In this case, bankruptcy trustees have the right to sell your nonexempt assets. However, you can verify all the property exemptions with your bankruptcy attorney.
On the other hand, if you are able to pay a certain portion of your total debt, then you could go for the Chapter 13 bankruptcy, instead of the Chapter 7. In Chapter 13, you create a repayment plan, thereby holding the ownership of your own assets. However, you need to ensure that you have fixed source of income, in order to fulfill the various terms and conditions of such plans. Such processes may take 3 to 5 years.
For example, there is nothing in this world called a ‘free lunch’. Thus, you must make yourself completely aware of the both positive as well as negative aspects of a bankruptcy procedure. It is not possible for everyone to know about each and every legal rule and regulation. That’s what your local bankruptcy is there to assist you with.
Apart from the State Laws, one must also be aware of the Federal Laws, in order to understand such complicated processes. Moreover, evaluation of your financial condition or any other personal assessment should be conducted with 100% accuracy.
Yes, opting for a local bankruptcy lawyer is the smartest thing to do. You can even click here to find a local bankruptcy attorney and get a free consultation. It is very important that you clearly explain all your financial and personal details to your attorney, prior to making any serious decisions. The counseling phase not only helps them to understand your problems, but also makes it far easier for you to choose among the available options.
Thus, with some basic knowledge, you can get rid of your fiscal burdens within no time. Many people in Texas people opt for bankruptcy and successfully get relieved from their huge debts. Thus, if you are in a critical fiscal situation, this is the right time to think about bankruptcy in Texas.