Money comes, money goes. The saying best describes the monetary situation of most people. There is no dearth of individuals who are struggling to make ends meet. You will hardly find someone who has not faced money problems in their life. If you are currently going through a bad financial phase and have accumulated a large amount of debt, then, bankruptcy might be a way out. However, there are various chapters of bankruptcy and it might be a bit too much for a layman to understand which chapter will work best for them. According to Dallas based bankruptcy law firm Recovery Law Group, people generally prefer to opt for Chapter 7 bankruptcy as it offers to get the majority of your debts discharged within 3-6 months of filing. This chapter is also beneficial if you are on the verge of foreclosure. However, it is important to consider certain factors before filing for Chapter 7 bankruptcy.
- Do you qualify for Chapter 7 bankruptcy?
Chapter 7 has stringent measures when it comes to qualifying for it. In order to qualify for Chapter 7 bankruptcy Dallas , your past six months’ income must be less than or equal to the median income in your state. Additionally, you might also need to show that you do not have enough disposable income to pay back your debts through Chapter 13 repayment plan.
- What happens to your assets?
Anything and everything you own becomes part of the bankruptcy estate when you file for bankruptcy. In the case of Chapter 7, the court can sell your non-exempt property to pay your unsecured creditors while discharging the remaining unsecured nonpriority debts.
- How to deal with secured debts?
Secured debts are those debts against which the creditor has collateral such as an automobile loan, mortgage, etc. They are not discharged in bankruptcy. However, you have the option of either reaffirming or redeeming the loan or surrendering the property. In the case of the former two, you can keep your property while coming to a payment agreement with the creditor.
Since bankruptcy is a complex process, involving numerous forms and fees, it is better to let professionals deal with it as all of this can be extremely overwhelming especially when you have immediate financial concerns. Seek professional assistance from experienced bankruptcy lawyers by calling 888-297-6023.