Arlington, TX Bankruptcy Lawyers
Seasoned Arlington, TX bankruptcy lawyers understand that when a person is struggling with mounting financial expenses and uncontrollable debt, the stress and strain can be overwhelming. The lawyers from the Brandy Austin Law Firm, PLLC have helped countless clients, enabling them to start fresh and rebuild their financial standing anew. If you are finding it harder and harder to make ends meet and you are being inundated with calls and notices from debt collectors, it may be time to speak with one of our bankruptcy lawyers in Arlington, TX.
Things happen. Life happens. Sometimes we get behind in paying a bill or two. No one is perfect 100 percent of the time. All too easily we can fall into the slippery slope of debt, which for many is becoming increasingly difficult to climb out of. When does a minor slip-up cross over into the realm of impossibilities? When is the right time, if ever, to file for bankruptcy? While missing a payment here and there is forgivable, sometimes due to unforeseen circumstances, catching up may be just out of reach and bankruptcy could be the only option. If you believe this is the case for you, speak with Arlington, Texas bankruptcy lawyers now.
It is not very likely that you will find anyone eagerly anticipating filing for bankruptcy. Generally, it is due to a loss of a job, a medical emergency, or simply ignoring financial problems until it is too late. If you are considering filing for bankruptcy, one of the best and easiest methods of determining if this is the right path is to sit down and create a monthly balance of all of the funds coming into the household and all of the monthly expenses. Subtract the total expenses from the total income and that will give you an idea of your disposable income. If that number is at or below zero (or really even coming close to zero) bankruptcy may be the best option for your situation. Other determining factors include:
- Receiving collection calls at home and/or work.
- Failing to pay house payments.
- Lawsuits being filed against you for non-payment.
- Paying credit card payments using other credit cards.
- Your car is in danger of being repossessed.
- Your wages are being garnished.
These are all extremely serious cases of financial troubles. If you simply ignore the situation, there is a very small chance that these situations will resolve themselves. The best option is to face the problem head-on and explore various options for your financial future.
As Arlington, TX bankruptcy lawyers may attest, there is no “one size fits all” bankruptcy solution. Each client has their own set of circumstances that need to be addressed. There are different types of bankruptcies and your lawyer may help determine which one is the right one for you:
Chapter 7 Bankruptcy: With this type of bankruptcy, the majority of unsecured debt will be discharged. This is commonly used because it offers debtors a fresh start. In short, items can be sold to repay debt, but most debt it written off without repayment. There is a required means test that a person must pass in order to file. In most circumstances, a person who earns a high wage would not qualify for Chapter 7. Under the law, you are allowed to keep certain property, which is called exempt property. This can include your vehicle, clothing, furniture, appliances, pensions, etc. In a Chapter 7 bankruptcy, the trustee may sell nonexempt property to pay off debt. Examples of nonexempt property include expensive jewelry, collections, a second vehicle, vacation home, etc. The average Chapter 7 takes three to four months to process.
Chapter 13 Bankruptcy: With this type of bankruptcy, you pay back your debt under a repayment plan. It is used often due to the fees that can be paid off over time. It is more of a debt adjustment, in which debtors will still make payments, but the payment terms will be revised. This repayment plan lasts between three to five years, depending on a person’s income. At the end of the repayment plan, any debt that is still left will be discharged. There is no means test for a Chapter 13 filing; however, the person does have to have steady income in order to meet the monthly repayment plan payment. If you are facing foreclosure on your home, a Chapter 13 can stop the foreclosure and the back-mortgage due can be incorporated into the repayment plan.
Chapter 11 Bankruptcy: This is used for businesses and individuals with unusually high debt. It is considered to be more of a reorganization than starting over.
This type of bankruptcy is for businesses and corporations that are facing financial difficulties. It is similar to Chapter 13 personal bankruptcy in that the company is allowed to come up with a reorganization plan to pay their creditors. Chapter 11 often saves companies from going out of business.
Chapter 12 Bankruptcy: This bankruptcy is fairly new and is designed specifically for fishermen and farmers. It is similar to Chapter 13 with the establishment of a repayment plan, but offers more options when it comes to cramdowns (the option of reducing the principal and interest when you are upside down on a loan) and lien stripping (getting rid of a second mortgage or home equity loan through bankruptcy).
Contact Arlington, TX Bankruptcy Lawyers You Can Trust
If you are struggling financially and think it may be time to consider filing for bankruptcy, contact one of the dedicated Arlington, TX bankruptcy lawyers at the Brandy Austin Law Firm, PLLC. Each one of our bankruptcy lawyers has extensive knowledge regarding the U.S. Bankruptcy Code and may sit down and discuss your options with you. With the right legal counsel, you can have a guide through this often-stressful process. If you need a compassionate attorney who can advise you and walk you through your situation, we are here to help. Call one of our Arlington, TX bankruptcy lawyers today.