Lincoln-Goldfinch Law understands how stressful the process of declaring bankruptcy can be. They guide you through the process with knowledgeable Texas bankruptcy lawyers.  Their lawyers can provide the knowledge and support you need to make the best decisions for your financial possibilities. Click for more info.

The Different Types Of Bankruptcy

When considering bankruptcy, it’s essential to understand the different types of bankruptcy and how they can affect you. There are two types of bankruptcy available: 

Chapter 7 Is A Liquidation Bankruptcy

This type of bankruptcy allows individuals and businesses to discharge their debts and clean their slates. In Chapter 7, a court-appointed trustee will liquidate non-exempt assets to pay creditors. Any remaining debt after the liquidation is then discharged.

Chapter 13 Is A Reorganization Bankruptcy 

It allows individuals to keep their assets while repaying some or all of their debts over three to five years. During this repayment period, creditors cannot contact the debtor or take legal action against them. After the payment plan has been completed, any remaining debt is discharged.

Filing For Bankruptcy

It's essential to understand the procedure if you're having financial problems and considering filing for bankruptcy. The first step in filing for bankruptcy is to determine which type of bankruptcy you should file for. There are two common types of consumer bankruptcy – Chapter 7 and Chapter 13.

After deciding which type of bankruptcy is right for you, the next step is to gather financial information. This includes all income sources, assets, debts, and expenses. It is important to be accurate and honest in providing this information.

Once you have gathered all the necessary information, you must file a petition with the court. You can complete the appropriate forms online or at your local bankruptcy court. 

You will need to provide the court with a list of creditors. This list includes detailed assets, all debts, and your current income and expenses statement. Once you have filed your petition, the court will set a hearing date where a trustee will review the case and decide whether or not to approve the bankruptcy.

At the hearing, you may be required to answer questions from the trustee regarding your finances. The court will issue an order after the hearing approving or rejecting your request to file for bankruptcy. If approved, you will receive a discharge from most of your debts. 

Additionally, if you have any assets not covered by bankruptcy exemptions, those assets may be liquidated to pay creditors.  That's why working with a knowledgeable Texas bankruptcy Lawyer in Lincoln-Goldfinch Law is essential. 

Their team of legal professionals can help you navigate the complexities of the bankruptcy system. They take pride in understanding the law and strive to ensure their client's rights are fully protected. 

What Assets Can You Protect In Bankruptcy

You can protect certain assets by dealing with Texas bankruptcy lawyers when you file for bankruptcy. There are two types of property:

• Exempt property, such as Social Security benefits, personal injury awards, and qualified retirement accounts, is protected from creditors in bankruptcy. 

• Non-exempt property is any other property, such as cash, jewelry, or real estate. Creditors may take that in bankruptcy. 

The Texas bankruptcy lawyer from Lincoln-Goldfinch Law will help you determine which assets are exempt and which are not. In most cases, you can protect all or most of your assets if you file for Chapter 7 bankruptcy. 

You must agree to a repayment plan with your creditors if you file for Chapter 13. This means that some of your non-exempt assets may have to be liquidated to pay off your debt. Your bankruptcy lawyer will assist you in comprehending your options and making the best choice for your future financial stability.

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Lincoln-Goldfinch Law
1005 E 40th St Austin, TX 78751
(855) 502-0555