Have Questions About Bankruptcy?
Get Answers from a Dallas Bankruptcy Attorney
Bankruptcy can be an intimidating option for many people. Although filing
for bankruptcy is often attached to a negative social stigma, it can be
a great option for those in need of financial protection. Due to the many
questions that may arise when contemplating
bankruptcy, our firm has provided detailed answers below.
What is Chapter 7 Bankruptcy?
In some Chapter 7 bankruptcy cases, people suffering from severe debt will
sell a number of assets in order to repay their creditors. In other cases,
these types of bankruptcies are labeled as “no asset” bankruptcies.
This means it is not required for assets to be sold during the process.
Chapter 7 bankruptcy is useful to become free of some debt and in order to pay off a portion
of the balance of unsecured debts.
Oftentimes, people who have experienced a long interval of unemployment
will file for Chapter 7 bankruptcy protection. These unemployment cases
might be the result of sudden medical issues that prevented them from
returning to work. Furthermore, people with fewer assets might find Chapter
7 bankruptcy more beneficial.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy reorganizes a person’s debt into a manageable
payment plan. Most often, these plans are scheduled into three or five-year
plans. On average, this type of bankruptcy is easier to qualify for. It
may also allow for a person to keep assets such as homes and cars.
Chapter 13 bankruptcy is also referred to as a “wage earners” bankruptcy, since
it is designed for those with a regular source of income.
Can Bankruptcy Stop the Foreclosure Process?
If you are facing the loss of your home, you should discuss your options
with a Dallas bankruptcy attorney as soon as possible. In some cases,
filing for Chapter 13 bankruptcy will allow you to stop or
prevent foreclosure and save your home.
What is a Bankruptcy Discharge?
A bankruptcy discharge relieves a debtor of certain types of debt by releasing
personal liability. Once a debt has been discharged, the debtor is no
longer liable for that debt—meaning, they are no longer legally
responsible for repaying it. Discharges are permanent, and they disallow
creditors from taking any further action to collect.
Will Filing for Bankruptcy Affect My Job?
An employer cannot fire or discriminate against an employee because they
have filed for bankruptcy. Similarly, an employee cannot be demoted, receive
a reduced salary, or be removed from responsibilities as a result. If
an employee is demoted or fired because they chose to file for bankruptcy,
the employer may suffer consequences.
How Will Bankruptcy Affect My Credit?
In general, bankruptcy will negatively affect a person’s credit score.
However, this can be
reversed over time. Of course, this depends on a number of factors – one being how
high or low a person’s credit score was prior to filing. Many times,
a person filing for bankruptcy already has a low credit score. On the
other hand, a person who had a good credit score prior to filing might
notice a greater impact on their credit score.
In addition, a debtor’s credit score may depend on the debtors debt-to-asset
ratio. Due to the complexities of this matter, it is important that you
seek experienced legal advice as soon as possible. The Dallas bankruptcy
lawyers at Allmand Law Firm, PLLC understand the stress that comes from
bankruptcy concerns. For this reason, our dedicated bankruptcy attorneys
stand ready to help you and your family.
To discuss your case,
contact our firm. Allmand Law Firm, PLLC is here to help.