Get a Fresh Start in 2025
December 13, 2024 By: Carrie Weir
Use Bankruptcy Law to Get Your Finances Under Control
2024 has been a tough year for many people. If you’re one of those who has lost a job, suffered a serious injury, or been a party to a divorce, you may find yourself struggling to make ends meet. That’s precisely why the American bankruptcy laws were enacted—to help regular folks get a fresh start when unforeseen circumstances put them in financial straits.
Your Options for Personal Bankruptcy Protection
There are generally two different paths you can take to deal with unmanageable debt in a bankruptcy proceeding:
- Chapter 7 liquidation—With this type of petition, you have the opportunity to permanently discharge certain types of debt, generally in exchange for relinquishing some of your property to the bankruptcy court to be sold to satisfy your creditors. Some debts, such as child support arrearages, may not be discharged. Other debts, such as taxes and student loan payments, can be extremely difficult to discharge. In Texas, most people who file under Chapter 7 are able to keep all or most of their property, as Texas has the most liberal exemptions in the nation.
- Chapter 13 reorganization—You must qualify to discharge debts through Chapter 7 by submitting to a “means” test. If you don’t meet the requirements to file for protection under Chapter 7, your remaining option in personal bankruptcy is through Chapter 13. With a Chapter 13 petition, you’ll have the opportunity to work out new payment arrangements with your creditors, typically over a 3-to-5-year period. Because you’ll still be paying on all your debts, you’ll get to keep all your assets
Whether you file under Chapter 7 or Chapter 13, you’ll immediately have the benefit of the automatic stay in bankruptcy, which goes into effect immediately upon filing and prevents your creditors from attempting to collect a debt other than through the bankruptcy court. That means they cannot call or write you and cannot take any legal action against you.
Contact an Experienced Rockwall, TX Bankruptcy Attorney
At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment to discuss your rights and options in bankruptcy, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Kaufman County, Rockwall County, Collin County, Dallas County, Hunt County, and the surrounding counties.