The bankruptcy process can be a tangled and daunting process. The bankruptcy process is legal which allows those who are in financial trouble to settle or eliminate the majority of their debts off their financial statements without the obligation of paying back.
If you reside in Texas and you’ve struggled with the burden of debt for some time then it may be the right an appropriate time to file for bankruptcy. The bankruptcy process is an effective one that allows families and individuals to manage their finances better and to regain financial stability.
Here’s how to file bankruptcy and what you should be aware of when filing bankruptcy in Texas:
Understanding the Different Types of Bankruptcy in Texas
There are two types of bankruptcy that individuals can file to address financial difficulties The Chapter 7 and Chapter 13.
Chapter 7 bankruptcy, also often referred to as the run-off type of bankruptcy is kind of bankruptcy that permits families or individuals with financial problems to settle their debts and gain new beginnings with the removal of the bulk (if it is not the entire) of the debts they are not exempt from. It is a necessity to.
On the other hand, Chapter 13 bankruptcy also aids Texas individuals manage their debts by placing them on a controlled repayment plan that is managed by the State’s Chapter 13 trustee.
What is the answer to this question?: Is chapter 7 an appropriate choice? Right Bankruptcy Plan or whether you should choose chapter 13 depends on your particular situation, income, the amount of secured debt as well as other factors. If you are making this decision it is advised to speak with a professional skilled in the filing of bankruptcy in the state you reside.
What documents and papers do you require?
You’ll have to purchase and complete specific papers and documents prior to filing to file for bankruptcy Texas. Additionally, you’ll also have to meet with the attorney who will help you file for bankruptcy in their office or at another agreed upon location.
In order to file for bankruptcy, you need to collect a number of documents:
- Financial information regarding yourself as well as your spouse, if you file jointly;
- The final 30 days’ worth of salary slips or salary statements. The document should include the total amount of money earned by all household members and overtime,
- A list of all creditors , and the amount you owe them, together with the contact information for them;
- A list of items that are exempt by your state
- Additionally, you will need to compile an inventory of all the properties that are exempted from Texas.
What is the cost to file bankruptcy?
The process of filing for bankruptcy in Texas isn’t an easy task, nor is it the most affordable one. The new bankruptcy laws applying to file for Chapter 7 will cost you $338 to make your application to the court. The fees can fluctuation. Additionally, the attorney who file this type of bankruptcy for you is likely to charge you more than the amount for their services.
Chapter 13 bankruptcy filing fees are $ 313 and could be changed at any time. This fee only covers the filing of bankruptcy, however lawyers will charge an additional fee to file the necessary documents and papers before the courts.
How long will it take?
The process of filing bankruptcy in Texas could take anything from a few weeks up to some months. In most cases, based on the circumstances and nature of your case it generally takes between three and four months.
The time it takes to get your discharge will depend on the kind of debt you are in and the amount of your debt, as well as the amount of creditors that want to get the debt. In addition, once you make bankruptcy filing in Texas the creditors you have filed with will not be able to continue to reach you. That means any future attempt to collect debts is unlawful and punishable under law.
Protect yourself before declaring bankruptcy
It is vital to think about all your options prior to declaring bankruptcy Texas. If you’re behind in your payments you should get in touch with creditors as well as credit card companies, loan companies and so on. to come up with an arrangement that is in line with your budget.
This will stop your debts from growing and allow you to create a plan to pay back the amount you are owed. In addition, you may talk with a licensed attorney about other options to pay off debt.
Every family or individual has their own personal goals and issues they must overcome when they file to file bankruptcy Texas. But, regardless of the motive for filing for bankruptcy, it is important to be aware of the benefits and drawbacks with this choice.
You have choices The first thing that you should keep in mind is to strategy for the future.