If you have decided to file for bankruptcy in Lewisville, then there are a few basic facts that you need to understand before you file for bankruptcy.
Reading and understanding these facts can help you to make an informed decision as to which chapter is more suited for your particular case.
Chapter 7 Bankruptcy Basics
Chapter 7 bankruptcy is also known as liquidation bankruptcy. Under this chapter, you can get a faster discharge after all your non-exempt assets are disposed of in order to pay your creditors.
If you have very few non-exempt assets and a very negligible source of income during the past 6 months, then this chapter could get you out of your financial quandary in as less as 4 months.
You will however, need to pass the “Means Test”, where your income from the last 6 months will be compared to the average median income of a similarly sized family.
If your net income is lower, only then will you be allowed to file for bankruptcy under Chapter 7.
The bankruptcy court will then appoint a trustee who will start by disposing off all your non-exempt assets to pay off your creditors. Any remaining debts will then be discharged or canceled, subject to the approval of the court.
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Chapter 13 Bankruptcy Basics
If you do not pass the “Means Test”, then you will have to file for bankruptcy under Chapter 13.
This chapter, also known as a ‘reorganization bankruptcy’, will allow you to present a debt-restructuring plan to the court, which will enable you to repay your creditors in a span of 3 to 5 years. One advantage that you have of filing under this chapter is that you may get to retain all your assets.
Your creditors might not agree to your repayment schedule; but if the court approves of your plan, then there will not be a problem. The court will then appoint a trustee who will ensure that you do not miss any payments.
Even though the time it takes to clear your debts under Chapter 13 is higher, it is still a respectable way of paying back your debt and getting back on your feet while also retaining your assets.
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Bankruptcy Attorney Basics
You should get in touch with an experienced bankruptcy attorney, who will be able to guide you after analyzing your past and present financial status.
They should be well versed in Texas Bankruptcy Law, and should have handled similar cases in the past. They should be able to file all the relevant papers within the prescribed time limits and should have your interests at heart.
So, read, understand and take firm steps to file your bankruptcy under the correct chapter. You can get immediate relief from your financial burden and get your life back on track at last.
Let the bankruptcy attorneys at Allmand and Lee put their 20 years’ combined experience to work for you today. Fill out our and get on the road to financial relief.
Topic: Filing for Bankruptcy in Lewisville, Texas
Visiting Lewisville, TX? Here are a few addresses that may be helpful.
The Municipal Court1197 West Main Street
Lewisville, Texas
Dallas Arboretum
8617 Garland Road
Dallas, Texas 75218