When debt becomes more than a person can handle, it is imperative they realize their legal options for pursuing bankruptcy in Fort Worth. There are a couple of different types of bankruptcy that can be filed depending on a person’s financial needs. It is important they meet with the lawyer to determine which type will be most beneficial and allow them to overcome their debt as quickly as possible.
If a person has mostly secured debts, especially a home that is in danger of foreclosure, it is vital for them to seek chapter 13. With this type, a person will be given three to five years to adhere to a structured repayment plan so they can pay off their debts with as little stress as possible. The restructuring of the payment plan must be approved by the court before it is put in place.
Those who are dealing with mostly unsecured debt and meet the means testing requirements may be approved for chapter 7. This type is settled fairly quickly and allows a person to have their debts absolved if they do not own any property that is not considered exempt. If a person owns extraneous assets above their essential property, these may be put up for liquidation so debts can be paid off.
No one wants to have to go through bankruptcy, but sometimes it is the only viable option when a person is dealing with debt that is beyond their control. Common reasons for filing bankruptcy include job loss, unexpected illness, and divorce.
It is imperative a person does not ignore their debt because creditors will not go away. Ignoring collection attempts can actually make things worse for a person and it could lead to the repossession or foreclosure of their property.
When debt becomes impossible to deal with, there is legal help available. For further information on how a lawyer can help, visit Davidskohmattorney.com. This site is full of information that can help individuals make a sound decision on whether or not bankruptcy is a viable option for them. Call the office today so you can schedule your consultation appointment.
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