What Is Bankruptcy And How Does It Work?

Bankruptcy is a legal process that allows you to get rid of some or all of your debts by either liquidating your assets (Chapter 7) or reorganizing them into a repayment plan (Chapter 13). Bankruptcy can help you stop creditor harassment, foreclosure, repossession, wage garnishment, and lawsuits. Bankruptcy can also give you a fresh start and a chance to rebuild your credit.

What Are The Differences Between Chapter 7 And Chapter 13 Bankruptcy?

Chapter 7 bankruptcy is also known as liquidation bankruptcy because it involves selling your non-exempt assets to pay off your creditors. Chapter 7 bankruptcy is usually faster and cheaper than Chapter 13 bankruptcy, but it also has stricter eligibility requirements. You have to pass a means test to prove that your income is below the state median and that you cannot afford to pay back your debts. Chapter 7 bankruptcy can wipe out most of your unsecured debts, such as credit cards, medical bills, personal loans, etc.

Chapter 13 bankruptcy is also known as reorganization bankruptcy because it involves creating a repayment plan to pay back some or all of your debts over three to five years. Chapter 13 bankruptcy is usually more suitable for people who have a steady income and want to keep their assets, such as their home or car. Chapter 13 bankruptcy can also help you catch up on your mortgage or car payments, reduce your interest rates, and eliminate some of your unsecured debts.

How Do I File For Bankruptcy In Dallas?

To file for bankruptcy in Dallas, you need to prepare a bankruptcy petition and several court forms that list your income, expenses, assets, debts, and other financial information. You also need to complete a credit counseling course and a debtor education course before and after filing. You can file for bankruptcy on your own (pro se) or with the help of a bankruptcy attorney. Filing for bankruptcy involves paying a filing fee ($338 for Chapter 7 and $313 for Chapter 13) and attending a meeting of creditors with your trustee.

Do I Need A Bankruptcy Attorney In Dallas?

Filing for bankruptcy can be complicated and confusing, especially if you have a lot of debts or assets. A bankruptcy attorney can help you understand your options, choose the best chapter for your situation, fill out the forms correctly, represent you at the meeting of creditors and court hearings, negotiate with your creditors, and protect your rights throughout the process. A bankruptcy attorney can also save you time, money, and stress by avoiding mistakes and delays that could jeopardize your case.

How Do I Find A Good Bankruptcy Attorney In Dallas?

There are many bankruptcy attorneys in Dallas who can help you with your case. However, not all of them are equally qualified or experienced. To find a good bankruptcy attorney in Dallas, you should look for:

– A licensed attorney who specializes in bankruptcy law and has handled cases similar to yours

– A reputable attorney who has positive reviews from past clients and peers

– An affordable attorney who offers free consultations and reasonable fees

– A responsive attorney who communicates well and answers your questions

I always try to follow the RULE OF 3. Almost every bankruptcy law firm in Dallas provides a free consultation. Use that to your advantage. Try to interview 3 law firms, this will help you get a feel for the firm that is the best fit for you.

I hope this post has answered some of your frequently asked questions about bankruptcy in Dallas. If you have more questions or need help with your case, don’t hesitate to contact my office at 469-607-8552.