As many Texas residents know, the two most common methods of bankruptcy are Chapter 7 and Chapter 13. Filing for bankruptcy under either of these two chapters requires an in-depth understanding of bankruptcy laws.
Texas Chapter 7 bankruptcy trustee collects part payment
While an individual or a business facing insurmountable financial challenges has the option of filing for bankruptcy, the type of bankruptcy petition can vary based on the circumstances. A Chapter 7 bankruptcy, as Tyler, Texas, residents probably know, requires debtors to meet certain criteria relating to their income level. Such a debtor can either be an individual or a business, although in some cases the debt may have originated from personal, as well as business activities.
Which debts cannot be discharged through Chapter 11 bankruptcy?
Residents of Tyler, Texas, may have heard about individuals and businesses going bankrupt or filing for bankruptcy and thereby recovering from debt. However, not many may realize that this is rarely as simple as it sounds. There are different kinds of bankruptcy petitions for which debtors may or may not qualify, depending on the nature of their financial difficulty. Filing a bankruptcy petition does not automatically imply a discharge of debt.
Liquidation under Chapter 7 can help Texans repay lenders
The average American, whether in Tyler, Texas, or elsewhere, can rack up debt in a number of ways. Often, no notice is taken of credit card bills until the amount becomes exorbitant. Or, an unexpected medical emergency can result in significantly high expenses. It is important to ensure that there are enough funds to repay such expenses, or else a person may be faced with the possibly of selling-off of the person's assets to pay the bills.
