Bankruptcy Representation In West Texas
Our Abilene bankruptcy lawyers at AndersonClements, PLLC, help clients throughout West Texas who are facing financial trouble and credit problems. If you are contemplating Chapter 7 or Chapter 13 bankruptcy, we can help you assess your financial situation and decide if bankruptcy is a good option. We can also help you with a bankruptcy filing and guide you through the entire process.
Finding Yourself Facing Bankruptcy
If you are struggling to find ways to cope with your financial situation, you might be considering bankruptcy. No one ever intends to file for bankruptcy, and those who are considering it usually find themselves with a lot of questions. The need to file is usually brought about by some force that is outside your control. Whether you’ve had a job loss, reduction in income, sickness or injury, or you’ve gone through a divorce, most financial hardships are brought about by unforeseen circumstances.
Chapter 7 And Chapter 13 Bankruptcy
The decision to file for bankruptcy is highly dependent on your personal situation and should be discussed in detail with an experienced bankruptcy attorney. Likewise, an attorney can talk you through the differences between filing for Chapter 7 or Chapter 13 bankruptcy. Our lawyers handle both and can discuss the advantages of each type of filing based on your specific situation.
Our firm regularly represents and protects consumers, and we can help you navigate your financial situation. We provide debt collection defense and can also intervene and protect your rights if you are being harassed by creditors.
Key Differences Between Chapter 7 And Chapter 13 Bankruptcy
When considering bankruptcy, it’s crucial to understand the distinctions between Chapter 7 and Chapter 13. Our attorneys can help you determine which option is most suitable for your situation.
Chapter 7, often called “liquidation bankruptcy,” typically allows for a quicker discharge of unsecured debts. It’s generally appropriate for individuals with limited income and few assets. In contrast, Chapter 13, known as “reorganization bankruptcy,” involves a repayment plan spanning three to five years. This option may be more suitable for those with a regular income who wish to retain certain assets.
The eligibility requirements also differ. Chapter 7 requires passing a means test, while Chapter 13 has debt limit thresholds. Additionally, Chapter 7 may require the sale of nonexempt assets, whereas Chapter 13 allows you to keep your property while adhering to a court-approved repayment plan.
Dischargeable Debts In Texas: Chapter 7 Vs. Chapter 13
Understanding which debts can be discharged in bankruptcy is vital for making an informed decision. While both Chapter 7 and Chapter 13 can provide relief, the types of dischargeable debts may vary.
In Chapter 7 bankruptcy, common dischargeable debts include:
- Credit card balances
- Medical bills
- Personal loans
- Past-due utility bills
- Certain old tax debts
Chapter 13 bankruptcy may discharge the above debts and potentially:
- Debts arising from property settlements in divorce
- Debts for willful and malicious property damage
- Certain debts that were nondischargeable in a previous bankruptcy
It’s important to note that some debts, such as recent tax obligations, student loans and child support, are generally nondischargeable in both Chapter 7 and Chapter 13 bankruptcies.
Our lawyers can provide a comprehensive analysis of your debts and guide you through the most effective path to financial recovery. We work diligently to help our clients understand their options and pursue strategies for a positive outcome.
Schedule A Consultation With A Bankruptcy Lawyer
We understand that you may have general questions regarding how bankruptcy works and what to expect if you choose to go forward with a Chapter 7 or Chapter 13 bankruptcy.
If you would like to discuss your situation with a local Abilene attorney, please call us at 325-899-3638 or send an email through our website. We look forward to speaking with you about your case and discussing how we can help you take the next steps toward financial freedom.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.