The federal law allows every individual to file for bankruptcy by which they can have their debts revised. While you can file for bankruptcy on your own but competent bankruptcy lawyers in Fort Worth can help you go about this legal process more efficiently.
Your debtors will immediately stop asking for payments from you as soon as you file bankruptcy until the point your debts are sorted out as per the law. Those who have trouble paying off their bills and debts benefit greatly from the Texas bankruptcy laws.
Types of Bankruptcy
There are four common types of bankruptcy cases a bankruptcy attorney in Fort Worth can file for you under the law:
- Also known as “straight” bankruptcy or “liquidation”, Chapter 7 bankruptcy law bounds the debtors to part with the property which surpasses certain limits called “exemptions.” This is done to pay creditors by selling the property.
- Chapter 11 is called “reorganization.” This option is utilized by a few individual debtors and most businesses with large debts.
- Chapter 12 is considered by family farmers.
- Chapter 13, known as “debt adjustment”, requires the insolvent party to put forward a plan to pay full debts or parts of debts from their current earnings.
Most people filing bankruptcy will want to file under either chapter 7 or chapter 13. Either type of case may be filed individually or by a married couple filing jointly.
Benefits of Filing Bankruptcy in Texas
If filing bankruptcy has become something you can’t decide on, here are some important benefits that you should consider that can help you make your mind:
- Texas provides generous exemptions for bankruptcy filers. The laws allow you to keep most of your personal possessions including the homestead. The Texas bankruptcy laws keep the debtors’ homestead from being captured by the creditors regardless of the value of it.
This implies that a homeowner with a home valued at $150,000 gets the same exemptions as someone who owns a home worth $3 million. In simpler words, lucky bankruptcy filers withany homesteads are not penalized unjustly for it when the bankruptcy is filed.
- When bankruptcy is filed, the debtor is allowed to sit with their bankruptcy attorney in Fort Worth and select a court of their own choice. On the contrary, other states in the country restrict individuals from doing so and allow such cases to be heard in designated courts only. One of the designated courts is chosen based on the location of the debtor’s home or business if they are filing business bankruptcy.
- Lastly, the debtors are permitted by the Texas bankruptcy law to increase their exemptions by bringing together the state and federal bankruptcy laws. This implies that if an individual or their bankruptcy lawyer in Fort Worth finds a federal exemption more useful than the Texas bankruptcy exemptions or vice versa, they can choose one over the other.
Besides, there are other states that push the filers to make an across-the-board choice to stick to either of the two types of exemptions. Fortunately, that’s not what you have to do if you are staying in Texas.
In case you need to file bankruptcy and/or need more information, connect with the attorney at Sherman Law Firm today.
Source: https://wakelet.com/wake/1b759eb6-59d0-4277-bb23-0d110f0c3af9
