In general, when a person in Texas decides they want to file for bankruptcy, within 180 days of doing so they must complete a credit counseling course. Also, before a person's debts can be discharged through bankruptcy, the debtor must complete a debt management course. These courses are designed to help ensure that debtors make sure they truly want to file for bankruptcy, and also to provide them with the information needed to hopefully deter having to file for bankruptcy a second time.
Texans whose debts have reached the point where they decide to file for Chapter 7 bankruptcy often have a hard time believing that their debts can be made to go away through simply filing for bankruptcy and following through with the process. Those who are asking if the Chapter 7 discharge really clears their debts should know how the discharge process works and what debts are dischargeable. Individual debtors who have a successful Chapter 7 bankruptcy will be freed from liability for most debts. Subsequently, creditors can no longer act to collect on the debt.
Texans who are struggling with their finances may have trouble seeing a bright future. After all, creditor harassment, foreclosure, and repossession, in addition to the possibility of wage garnishment, can leave an individual totally overwhelmed and not knowing how he or she is going to make ends meet. Although individuals in this situation may be well-aware of the bankruptcy process, they may find themselves concerned that pursuing bankruptcy will permanently scar their financial record, preventing them from securing the financial freedom that they ultimately want.
Debt problems seem like they can spiral out of control in the blink of an eye. One day you seem to have everything under control, making your payments on time and consistently paying off your debts. Then something unexpected happens on the next day and you are left totally overwhelmed. You're unable to make your minimum payments and you're slapped with excessive penalties and interest fees that leave you scrambling to make ends meet. As stressful as this can be, you should take comfort in knowing that you have debt relief options.
If you had surgery, needed medical care after an accident or just recovered from a serious illness, you are likely facing serious medical bills. Even with insurance, the cost of medical care is exorbitantly high, and the accumulation of your bills could quickly outpace your ability to pay.
Chapter 7 bankruptcy is a common strategy for Texans who are overwhelmed by consumer debt and would like to move on with debt relief. However, it is not automatic that the discharge will be given. There are laws when filing for Chapter 7 and, if there is a violation, the discharge can be denied. Understanding the criteria for this denial is imperative before filing so the person can take steps to either avoid denial of discharge or find another way to get out of debt.
Struggles for the oil and gas industry in Texas and throughout the world has led to a growing number of companies and individuals in financial turmoil. With that comes the inevitable decisions that have to be made as to whether or not bankruptcy is the right option to try and get into a better financial situation. But it is not just bankruptcy that has to be decided upon. The type of bankruptcy that is the best option and most applicable to the situation might be in question. Making the decision that a Chapter 7 bankruptcy is the preferable option often requires legal help. After the decision is made, it is assured that legal assistance is required for a solid outcome and getting beyond financial challenges.
For Texans who are experiencing financial challenges and seeking debt relief, a bankruptcy under Chapter 7 is a useful alternative to help them move on with their lives. There are, however, numerous aspects to filing for Chapter 7 that must be understood. Knowing what a Chapter 7 discharge is, the possible effects, and the effects of a debt reaffirmation are some of the issues that need to be considered.
The term "Chapter 7 bankruptcy" might be vaguely familiar to people in Texas as a potential way to deal with out of control debt. Some will mistakenly see it as a negative. Others might not know the entire scope of how beneficial it can be to someone who needs a fresh financial start. Two issues within filing for Chapter 7 that must be fully understood and might assuage certain fears that people might have are the primary purposes of Chapter 7 for individuals and what will have to be paid out of pocket at the time of the filing.
When a Texan consider the idea of filing for Chapter 7, they are often under the impression that it is simply for people who are struggling with debt and would like to clear them in their personal circumstances. However, a Chapter 7 bankruptcy can also be used by a business. Chapter 7 for businesses might not be as prominent in comparison to other options, but for those who meet the criteria, it is a viable choice to move forward in their business and personal lives.