There are several types of bankruptcy. This video was produced by the US Trustee’s office to describe each of the types and the key differences between them.
Even though being overwhelmed by debt isn’t a situation which anyone would wish to be in, there are options available to Texas residents which can help them to manage, reduce or eliminate these debts and start over with a clean slate. One of these options is filing for bankruptcy. By filing for chapter 7 or chapter 13 bankruptcy, Dallas area residents have access to legal protections as well as the ability to either wipe their debts out entirely or at least to make their burden a much more manageable one.
Chapter 7 and chapter 13 bankruptcy are the types of bankruptcy protection most commonly filed for by individuals, each of which provides consumers with a different way to repay or eliminate their debt as well as different protection from their creditors under the law.
In Chapter 7 bankruptcy Dallas cases, the debtor’s debts are often completely discharged, with the debtor being able to avoid having their property liquidated to repay debtors and being free of any future financial obligations to their creditors. There are limits in place as to what assets are exempt from liquidation in chapter 7 bankruptcy cases, though non-exempt property can be and often is sold by the trustee (the bankruptcy court in this case) to repay creditors. However, most of these bankruptcies fall into the category of what are called no-asset cases, meaning that the debtor will not lose any of their property to liquidation.
Not all types of debt can be discharged through a chapter 7 bankruptcy Dallas filing. Debts which are not covered by the legal protections of Chapter 7 include alimony and child support payments as well as debts which were incurred through fraud on the part of the debtor (such as loans obtained under false pretenses).
In Chapter 13 bankruptcy Dallas consumers are allowed to repay their debts, either in full or in part over a period of three to five years, even if their creditors object to this arrangement. This is a type of bankruptcy protection which is well suited to individuals who have fallen behind on their debts but have the ability (ie a regular income) to catch up and become current on these payments once again.
Under Chapter 13, debtors are allowed to retain their assets including their homes and vehicles provided that they meet their obligations under the bankruptcy settlement. However, just as in chapter 7 bankruptcy Dallas residents cannot have certain types of debt discharged.
Obviously, bankruptcy is something we’d all like to avoid – but for people who find themselves in dire straits financially, bankruptcy can offer them the help they need to get back on their feet and get their finances in order while reducing or eliminating the debt which they thought they’d never be able to repay.
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 get out of debt.