When Should I Consider Filing For Bankruptcy and Hiring A Lawyer in Texas?

If you have difficulty managing your finances and cannot pay your creditors in Texas, consider filing for bankruptcy. Bankruptcy is a process that can be filed if you cannot pay your debts and have serious debt issues. However, you need to consult and hire a bankruptcy lawyer to go ahead with the formalities, as the process involves a lot of paperwork and legalities.

A bankruptcy lawyer from the Law Office of Corey L. Mills in Texas helps the people of Katy and the surrounding areas of Texas with reliable legal guidance and support to file for bankruptcy. They also explore different options to reduce financial stress with non-traditional methods if bankruptcy does not seem right. Get a free evaluation of your case to know your legal options for debt-related issues.

Why should you consider filing for bankruptcy?

Unmanageable financial situations can overburden you with debts that can disturb your professional and personal lives. You may have relationship problems, poor performance at work, and numerous other challenges. Hence, filing for bankruptcy can be beneficial as you get immediate debt relief and no longer have to worry about managing your expenses with monthly debts.

What happens once you declare bankruptcy?

Once you declare bankruptcy, your creditors will receive legal notice to stop worrying about you paying back their money. Your bankruptcy lawyer will see your case, send petitions to your creditors, and fix a hearing.

Common bankruptcy Chapters that can be filed

The next step is to decide whether you will file for Chapter 7 or Chapter 13 of the US bankruptcy laws.

Filing Chapter 7 

Chapter 7 bankruptcy is a good option if you do not earn a high income and your debts are unsecured. You can liquidate your assets and pay creditors like banks and credit card companies without going into long monthly repayments. You receive a notice of discharge in four months. However, you must file Chapter 13 bankruptcy if your income is high.

Filing Chapter 13

Chapter 13 bankruptcy can help those who have a steady income get back on track. You can pay some money to the creditors and keep a few assets with you. A repayment plan is made to pay your creditors within three to five years. It also includes completing a budget counseling course.

Consulting a Texas bankruptcy lawyer is essential to understanding whether filing for bankruptcy would be a good option for you to manage your financial situation. Legal advisors can help you decide which option to choose for declaring bankruptcy.