Texans who are experiencing problems with debt will frequently consider a variety of alternatives to get on stronger financial ground before considering the potential benefits of bankruptcy. Once they understand that bankruptcy is a perfectly legal and viable solution to improve their financial standing, they are still puzzled by which chapter would be best for their situation. The circumstances will dictate the final decision, but for wage earners, Chapter 13 is frequently considered the ideal option. Understanding why is the key.
If you are struggling to pay back your debts, you may have to deal with bothersome creditors and bill collectors. Additionally, you may be worried about keeping their homes and keeping the lights turned on during this difficult time. Fortunately, bankruptcy may allow you to have some peace of mind due to an automatic stay that kicks in as soon as you file.
Once you have made the difficult decision to file for bankruptcy, you will have to decide which type of bankruptcy you should file. Most individuals will choose between Chapter 7 and Chapter 13 bankruptcy. While the general idea is the same (to eliminate debt), each type of bankruptcy comes with its own pros and cons.
This blog has recently discussed business bankruptcies and it is important for any sized business, including small businesses, to understand bankruptcy protections and relief that may be available to them. Struggling business owners should understand the relief that may be available to them through different bankruptcy options.
The automatic stay is an important protection during the bankruptcy process and those considering filing for bankruptcy should be familiar with how it works. The automatic stay goes into effect once the filing party has filed for bankruptcy protection and protects them from collection actions during the process.
Chapter 13 bankruptcy is one option to consider for those seeking debt relief. Chapter 13 bankruptcy provides one option that may help address debt-related concerns while also protecting the filing party's property.
One of the things Tyler, Texas, residents frequently are willing to take out a loan on is a new or gently used car. After all, relatively few families are blessed with having the thousands of dollars in savings that it takes to purchase a vehicle when they need one, and cars are an essential part of daily life for most residents of this city.
Veterans who have been injured in combat often face significant challenges as they seek to resume their lives back in Tyler and elsewhere in the United States. Physical and psychological injuries commonly require intensive, long-term treatment and can turn everyday tasks into hurdles to overcome. Recently, it was reported that thousands of veterans and their families are shocked to find that they owe thousands for survivor benefits to the government, threatening their family's financial stability.
For Tyler residents who earn some form of income but struggle with debt, there is good news. Chapter 13 allows individuals to file for bankruptcy and obtain a fresh financial start while protecting their assets, as long as they can keep current on a court-ordered payment plan that typically lasts up to five years.
We make efforts here on our Tyler Texas bankruptcy law blog to address the pervasive myth that homeowners will automatically lose their homes if they file for bankruptcy. Especially with Chapter 13, filers can generally keep their homes if they can stay up to date on their repayment plans. Even some Chapter 7 filers may be able to keep their homes, thanks in part to Texas' strong homestead laws.