Filing for a Dallas Texas bankruptcy is something no one looks forward to. However, when you’re faced with massive debt and can’t see any other way out of your situation, the protection provided by the US bankruptcy codes can help you to prevent a Dallas Texas foreclosure and save your home as well as other property while wiping out your debts. While bankruptcy provides many benefits to consumers dealing with overwhelming debt, it also places many responsibilities on the debtor which they must be aware of. Debtors must carefully account for all of their assets, including any property which they have transferred to others.
During a Dallas Texas bankruptcy proceeding, there are a lot of documents which must be filed with the bankruptcy court and hearings and meetings which the debtor must attend. All of these documents as well as any statements made at these meetings and hearings are considered to be sworn testimony and as such, any false statements (or even errors in these documents and statements) may expose the debtor to legal penalties for perjury. These penalties may include fines and imprisonment for up to five years; and of course, any discharge of debts will also be denied by the court. The debtor will actually make statements in court if required as well as at their 341 meeting under oath; this is a preliminary meeting with creditors which is facilitated by a trustee of the Dallas Texas bankruptcy court.
As part of Chapter 7 or Chapter 13 bankruptcy, Dallas debtors may have to appear in court for a hearing. There is usually only one hearing in Chapter 13 cases, where the debtor will be informed as to whether or not their petition for bankruptcy protection will be approved as well as the provisions of this ruling. At a Chapter 7 Dallas Texas bankruptcy, the debtor will not usually be required to appear in court. However, there may be a hearing which requires the presence of the debtor in the event that a creditor files an objection.
A hearing will also be held if the debtor decides that they would prefer to continue paying one or more of their debts in order to retain the property related to the debt (such as a car or a home); these hearings are known as reaffirmation hearings. During the hearing, the bankruptcy judge will explain the responsibilities assumed by the debtor by reaffirming the debt as well as alternatives to reaffirmation. These generally include redeeming the property, which requires the debtor to purchase the property at its actual value with a lump sum payment and surrender, which is self-explanatory. The judge will assess the debtor’s ability to pay before deciding whether to grant the reaffirmation of the debt.
When you’re ready to get out from under the crushing debt load and begin a new debt-free life, contact Dallas bankruptcy lawyer Rustin Polk by clicking here. Tell our Appointments Coordinator, Kimberly, that you are a website reader and she will set you up with a free, no obligation appointment to learn how we can help you.