If you’ve fallen into insurmountable debt, you might be wondering what to do next. Filing for bankruptcy might be your best bet—it can give you a fresh start, prevent creditors from harassing or filing lawsuits against you and eliminate all or part of your debts. How you file depends on your specific circumstances, which is why it’s smart to hire a bankruptcy attorney in Montgomery County, TX. Legal expertise will allow you to navigate the complex process and give you the best chance for a new financial beginning.
Many people prefer to file for Chapter 7 bankruptcy because it allows you to fully discharge your debt after you liquidate most or all of your assets to pay off your creditors. Chapter 7 bankruptcy is subject to a “means test,” meaning that the court will evaluate whether you’re actually in a position to pay off your debt.
If you don’t qualify for Chapter 7 bankruptcy, or you want to keep your assets, you can file for Chapter 13. This type of bankruptcy allows you to pay off your creditors over time at a significantly reduced amount.
Relief from creditors
Once you meet with an attorney and decide to file for bankruptcy, the court will issue an automatic stay—that is, an order that declares creditors, debt collectors and others are no longer allowed to send you threatening letters or harassing phone calls. They are also not allowed to file lawsuits against you to collect on your debt. For many people, this is a relief in and of itself, allowing them to focus on how to better manage their finances without the threat of legal action hanging over their head.
Discharge of debt
Finally, when your debt is either discharged or you’ve completed the three- to five-year repayment program under Chapter 13, your creditors will have no way to file a suit against you—even after the proceedings are finished. That’s because the court has rendered its judgment and you have either met or are currently meeting your obligations, so they consider justice served.
Bankruptcy isn’t a magic cure-all—you can expect that your credit score will take a hit, and you’ll very likely need to make budget adjustments to account for your new lifestyle—but it can certainly protect you from further lawsuits and severe consequences. Deciding to file bankruptcy is a serious decision that’s best reached under the counsel of an experienced attorney. They’ll be able to describe the benefits, drawbacks and other circumstances that will affect your choice.
Bankruptcy attorney in Montgomery County, TX
Need a bankruptcy attorney in Montgomery County, TX fast? James R. Jones, Attorney at Law has experience you can rely on. The process of filing for bankruptcy can be complex, cumbersome and overwhelming, which is why you need expert legal assistance. We specialize in Chapter 7 bankruptcy, and are licensed in all state courts as well as federal district courts. Call us today for a 30-minute consultation. We look forward to assisting you.