Bankruptcy

Bankruptcy Attorney in Greenville, TX

Helping Clients in North Texas Break Free From Financial Struggle

If you’re getting constant debt collection calls, are having trouble making your minimum monthly payments, and still feel like there’s not enough money left to make it through the month, it may be time to consider filing for bankruptcy.

Debt can affect every area of your life, from your credit score to your quality of life. Filing for bankruptcy can offer you a fresh start, but it’s crucial to have the guidance of an experienced attorney throughout the process. If you’re considering filing for bankruptcy or you want to learn more about this option, call The Council Firm, PLLC, at 903-494-3380 to schedule a consultation with one of our bankruptcy lawyers.

How Does Filing for Bankruptcy Work?

Filing for bankruptcy can help you discharge debt and free up some breathing room in your budget, but it’s also a multistep legal process. Once you’ve decided to file, the next step is to start credit counseling. This is required before you can submit your official bankruptcy filing and ensures you understand what the process entails and are aware of the potential alternatives.

The exact process can vary depending on the filing type, but in most cases, an automatic stay goes into effect immediately. This means that creditors can’t take any action, such as suing you, to collect on a debt. There will be a meeting of the creditors to give them a chance to object if they wish. The applicable debts are discharged once all the filing requirements have been met. If you’re filing for Chapter 13 bankruptcy, the discharge happens after you’ve made all your scheduled payments.

What Is the Difference Between Chapter 7 and Chapter 13 Bankruptcy?

Most consumers will choose between Chapter 7 and Chapter 13 for their bankruptcy filings. The main differences between the two are whether you will keep any major assets and whether you will set up a repayment plan to pay off some of your debt. In a Chapter 7 bankruptcy, you must liquidate most of your assets to pay your creditors. A Chapter 13 bankruptcy allows you to keep some of your assets, but you also have to make payments on your debt for three to five years before the remaining debt is discharged.

Another difference between Chapter 7 and Chapter 13 filings is who qualifies. Chapter 13 bankruptcy has a limit on how much debt you can have. Chapter 7 does not, but you must have a low enough income to qualify for this option.

What Debts Cannot Be Discharged Through Bankruptcy?

Bankruptcy can be especially helpful for those who have a large amount of unsecured debt, such as credit cards and medical bills. While filing for bankruptcy can help you get rid of most debts, there are certain debts that aren’t eligible for discharge. These include:

  • Child support and/or alimony
  • Criminal fines or penalties
  • Tax debts
  • Student loan debt
  • Liabilities from certain personal injury lawsuits

If any of the above make up a large portion of your debt, filing for bankruptcy may not be the best option. Talk with an attorney about your financial situation and goals to determine if there are any suitable alternatives.

Are There Any Alternatives to Filing for Bankruptcy?

If you don’t qualify for bankruptcy or have debts that aren’t dischargeable, there may be some other options to help you get back on track financially. In some cases, you may be able to negotiate with creditors to pay off a debt for less than you owe if you are prepared to pay in full. You may also be able to negotiate a lower interest rate, which can help you make headway faster and potentially lower your monthly payment.

A debt consolidation loan may help if you are struggling to manage multiple smaller payments per month. However, this option should only be considered as part of a larger credit counseling strategy, as many people consolidate credit card debt and then charge the cards again, making the problem worse.

A bankruptcy attorney can help you consider all your options and, if necessary, connect you with reputable credit counseling services.

Contact Our Experienced Bankruptcy Lawyers in Hunt County

You don’t have to spend sleepless nights wondering how you’re going to make ends meet. Our team is here to help you explore your options and determine a strategy that helps you move forward. Call The Council Firm, PLLC, at 903-494-3380 to schedule a consultation with an experienced bankruptcy attorney today.