FREQUENTLY ASKED QUESTIONS ON BANKRUPTCY
FULLER & EASON: DALLAS BANKRUPTCY ATTORNEYS
While bankruptcy can be a confusing and anxiety-laden idea, it can be a useful means of overcoming massive debt. Though it should be taken seriously, it can provide a means of keeping your creditors at bay while you can legally restructure your financial situation. Below are some common questions regarding bankruptcy. For further support, call our Dallas bankruptcy attorney for competent advice.
What is bankruptcy?
Bankruptcy is the legal process by which a person who cannot pay their bills can receive a fresh financial start. Federal law provides for bankruptcy in such situations and cases are handled by federal courts. When a person files for bankruptcy, most creditors must stop attempting to collect on their debts.
What can bankruptcy do for me?
Bankruptcy can eliminate your legal obligation to pay back your debts, stop foreclosure on your house and allow you to catch up on missed payments. Not only that, but it can also prevent repossession of your car and other property, stop wage garnishments and debt collection harassment, and allow you to challenge the claims of creditors that have committed fraud.
What does bankruptcy not do?
Bankruptcy can’t fix all your financial problems and may not be the right step for all. Bankruptcy will not allow you to eliminate the rights of “secured” creditors who have taken a lien on property as collateral such as a car or home loan. You cannot discharge debts singled out by the bankruptcy law for special treatment such as alimony or child support, nor can you protect all cosigners from your debts by declaring bankruptcy.
How often can I file for bankruptcy?
If you filed for Chapter 7 bankruptcy, you may not do so again for another eight years. You will have to wait six years after filing for Chapter 13 before you can file a Chapter 7. You may qualify for other relief sooner. For more information on filing deadlines and restrictions, call our Dallas bankruptcy attorney.
What are the different types of bankruptcy?
Four different types exist for you to consider. Chapter 7 is liquidation and may require you give up property that exceeds certain limits called “exemptions” which can be sold to pay creditors. Chapter 11 is reorganization and used by businesses and a few individual debtors who have very large debts. Chapter 12 is for family farmers. Chapter 13 is called debt adjustment and requires a debtor to file a plan to pay their debts from their current income.
Contact Fuller & Eason to learn more about the bankruptcy process.