If you’re struggling with overwhelming debt and thinking about filing for bankruptcy in Robstown, Texas, it’s important to understand your options. Bankruptcy filings are on the rise across the nation, reflecting the financial challenges many individuals face. By learning more about the types of bankruptcy and what the process involves, you’ll be better prepared to make an informed decision for your financial future.

Here are some essential things to know before filing for bankruptcy:

Types of Bankruptcy

There are two primary types of bankruptcy: Chapter 7 and Chapter 13.

  • Chapter 7 Bankruptcy:This involves liquidating assets to pay off creditors. However, many assets, such as clothing, household goods, and vehicles, are exempt from liquidation. It allows individuals to eliminate most unsecured debt, such as credit cards and medical bills. In this process, a trustee may sell non-exempt assets to repay creditors. Chapter 7 can often be completed in a few months, giving people a fresh start.

 

  • Chapter 13 Bankruptcy:This allows individuals to repay debts over a three to five-year period through a court-approved repayment plan. Through a court-approved repayment plan, individuals can keep valuable assets, like a home or car, while catching up on payments. This option is beneficial for those seeking debt relief while keeping their property.

The Bankruptcy Process

The bankruptcy process involves several steps:

  1. Credit Counseling:Before filing, you must complete credit counseling with an approved agency.
  2. Filing the Petition:You’ll file a petition with the bankruptcy court, listing your assets, debts, and income.
  3. Meeting of Creditors:A meeting is held where creditors can question you about your financial situation.
  4. Debt Discharge:Once the bankruptcy process is complete, eligible debts will be discharged.

 Important Considerations Before Filing

Eligibility Requirements:

  • Chapter 7:Requires income qualifications and passing a means test.
  • Chapter 13:Requires a steady income to support a repayment plan. Consult a professional for clarification.

Impact on Credit:

Bankruptcy affects your credit for up to 10 years, limiting access to loans and credit. Consider the long-term consequences before filing.

Texas Asset Exemptions:

Texas offers exemptions to protect assets like your home and vehicle in bankruptcy. Consult an attorney to understand what’s protected.

Legal Assistance:

Bankruptcy involves complex paperwork and court appearances. An experienced lawyer can guide you through the process and protect your rights.

A bankruptcy lawyer in Robstown meeting with a client to explore debt relief options.

Taking the Next Steps Toward Financial Relief

Bankruptcy is not just a way to erase debt; it’s an opportunity to regain financial stability. If you’re considering this step, a professional bankruptcy attorney can provide the support and information you need to make the best decision.

If you’re considering filing for bankruptcy and need support to protect your assets, the Law Office of Joel Gonzalez is here. As an experienced bankruptcy lawyer and dedicated debt relief attorney serving Robstown, Joel has built a record of high client satisfaction. He will work with you to clarify your options and safeguard your property. Contact Joel today to begin your journey toward financial recovery and peace of mind.