Thinking of filing bankruptcy? If so, you have homework to do. It makes sense to look at your financial picture. Those who are thinking of filing have more debts than they can afford to pay. In today’s economy, this is not unusual. For instance, one unexpected illness can leave you owing thousands of dollars. Before filing bankruptcy, the consumer should try and work out a payment plan. Many credit card companies and medical providers work with clients.
On the other hand, you may need to talk to a bankruptcy lawyer in Fort Worth. It is a good idea to consult with a lawyer in certain situations, such as when you are behind on secured debts in addition to medical bills and credit cards. Examples of secured debts are mortgages and car notes. Are you afraid to answer the phone or pickup your mail because it may be a bill collector talking about repossessing your car and foreclosing on your home? If this is the case, bankruptcy may be the answer.
The bankruptcy lawyer in Fort Worth will ask for proof of income. Further, it is important to know whether there are assets. Chapter 7 and chapter 13 are the most common consumer bankruptcies. In chapter 7, the bankruptcy trustee liquidates the debtor’s qualified assets. Any funds raised are used to pay down debt. In order to file chapter 7, the debtor must qualify based on income. The court must see that the debtor is not able to repay debts in a chapter 13.
Chapter 13 is often called the wage-earner’s plan. That is because the filer must have a regular income. The debtor’s lawyer and the bankruptcy trustee work out a monthly payment figure. The debtor must send the money to the trustee monthly. In return, the trustee pays down debt. Undoubtedly, the debtor must learn to budget. Indeed, the payment is a big portion of your monthly income. A chapter 13 goes on for five years. There are positives to this plan. For instance, the debtor gets to keep their home and vehicle, and collection activity has to cease during the bankruptcy. To learn more, visit Davidskohmattorney.com.