Chapter 7 bankruptcy, also known as liquidation bankruptcy, permits a debtor to sell of items of property in order to satisfy their outstanding obligations to their creditors. Some Tyler residents may be wary of this process as it may seem as though they will be left with nothing once their financial obligations are fulfilled. However, through the permissible use of property exemptions a debtor may protect certain items of property for their lives after they have received their Chapter 7 discharges.
Bankruptcy may be the missing item in your financial toolbox
Living in Texas definitely has its pros and cons, same as any other state. You've likely heard humorous remarks about everything being "big" here. The trouble is, not everything that's big is good; for instance, big health problems, marriage problems or financial problems are anything but good. When big financial problems arise, it can have immediate and long-lasting negative effects on your life. Perhaps none of this is news to you because you are currently trying to overcome a particular financial crisis.
Watch out for phantom debt collection scams
Tyler residents struggling with consumer debt may be familiar with some of the tactics that debt collectors use. These all too often cross the line from the legitimate exercise of creditors' rights into harassment, even threats. Making matters even more complicated and disturbing is the fact that the information about one's debt relied upon by collectors may be incorrect or even completely made up.
Helping clients understand the limits of their creditors' rights
Sometimes, Tyler residents struggling financially reach a point where it feels like they have no control. The tactics that creditors use against you feel invasive, demoralizing and infuriating and it seems they can get away with just about anything they want.
Default on student loan in Texas, lose your professional license
A phrase with which Tyler residents struggling with financial challenges will likely be all-too-familiar is "pull yourself up by your bootstraps." The idea that one should simply work more - longer hours or an extra job - to pay off debt is hard-wired into many minds. But especially for individuals struggling with student loan debt, working may actually become more difficult or even impossible.
How does Chapter 7 compare to Chapter 13 bankruptcy?
It can happen to even the most fiscally responsible person. Sometimes a financially catastrophic event occurs -- a serious illness, a job loss, a divorce or another major life event -- that makes it difficult if not impossible for a person to pay their bills. It is not pleasant to be in a situation where a person has to decide which bills to pay (or not pay) and still keep food on the table and a roof over their head. Fortunately, people in Texas and across the nation who are drowning in debt may be able to file for bankruptcy.
