If you are reading this article, there is a good chance that you have come to the realization that filing for bankruptcy might be one of your best options. You may not be convinced yet, but want to know more about your options and how it might help you.
Good news! Bankruptcy can offer a fresh start and help you get back on track with your finances and can allow you to move forward more positively. It's essential that you know what bankruptcy is and how it works before deciding if it is the right option.
When we think about bankruptcy, we usually picture lots of paperwork and meetings with attorneys. However, this couldn't be further from the truth. The majority of bankruptcy cases can be handled without an attorney, and all you will need to do is fill out some forms and attend a meeting with a trustee.
Here are some of the reasons you need a Bankruptcy Lawyer:
When you file for bankruptcy, it doesn't mean that you will lose all of your assets and be left with nothing. You will either get to keep all of your property or receive a certain amount of exemptions to protect some of your assets when filing for bankruptcy.
When filing for bankruptcy, you will be expected to pay back some or all of your debts. If you have debts secured by collateral, such as a car loan or house loan, you will be able to keep the property that secures these debts. If you have unsecured debts such as credit cards, medical bills, or personal loans, you usually will not have to pay back these debts in full. You can work with a trustee and negotiate the amount that you will repay.
As mentioned above, bankruptcy allows you to eliminate certain types of debt when filing for bankruptcy. When filing for Chapter 7 Bankruptcy, you can normally eliminate credit card debt, medical bills, and personal loans. Those who have experienced a lot of unexpected expenses such as job loss or disability may be able to eliminate most of their unsecured debts when filing for bankruptcy.
When you have unpaid debts that are not satisfied by an agreement with your creditors, they can take steps to garnish your wages. When this happens, you will no longer receive the full amount of money that you are owed when paid by an employer, and instead, a certain percentage or flat fee is deducted from each paycheck. Filing a bankruptcy can stop wage garnishment.
When filing for bankruptcy in either Chapter 7 or 13, you will be given a clean slate. This means that once your bankruptcy case is filed, no collection agency or creditor can legally contact you for payment on the debts included in the bankruptcy filing. While this does not mean that they cannot try to collect from you, they must abide by certain rules and regulations, especially when it comes to telephone calls and letters.
These are just some of the reasons you need a Bankruptcy Lawyer, but there are many others as well. You may have heard that you can save money by handling your bankruptcy. While this might be true for some people, it is vital to keep in mind the benefits mentioned above and know that if you do decide to file for bankruptcy, an experienced lawyer specializing in bankruptcy can help to make sure that your case is handled correctly and all of your rights are protected.
DeMarco Mitchell, PLLC is a bankruptcy law firm that is licensed to practice law in Texas. We offer free consultations and serve clients throughout Plano, TX, and other surrounding counties. Contact us today to learn more about bankruptcy and how we can help you regain financial freedom.