Steps to Seeking Bankruptcy Assistance in Keller, Texas

by | Apr 25, 2018 | Attorney

Many people struggle at different times in their lives. This could be due to a loss of income from someone losing their job, getting divorced, someone dying, or even becoming disabled. People can also fall on hard times when they do not budget their money properly and they owe too much on bills. There are also uncontrollable situations where people incur a lot of debt such as someone getting sick and being in the hospital or needing care for a prolonged period of time. These expenses are not cheap. During these times, people may begin to look into bankruptcy assistance in Keller, Texas. What steps should be taken if they decide to file for bankruptcy?

Hire an Attorney

If someone is considering any type of debt relief or bankruptcy, the first step should be to contact an attorney. Many attorneys are very affordable in this situation as they know they are dealing with people who do not have a lot of money. An attorney can offer advice and explain the steps that should be taken in regards to filing or even offer debt relief advice for those with only a few bills.

Calculate Debt and Income

One of the things the attorney will want to do is calculate the personal debt and monthly income. This will need to be done in order to see what type of bankruptcy the person will qualify for. If the person has a higher income, they may not qualify for chapter 7 bankruptcy but could qualify for chapter 13. In chapter 13 bankruptcy, a portion of the person’s debt will have to be paid back. In chapter 7 bankruptcy, the debts of a person are designed to be cleared.

Make a Decision to File

The attorney involved in the case can let you know the impact a bankruptcy will have on the future. In most cases, there is a hit to the person’s credit score for a certain number of years. This may weigh in on the decision to file for bankruptcy.

Once bankruptcy has been decided, any debt collectors will begin to work with the attorney handling the case versus the person in debt. Often times, a settlement can be determined or the debt can be rolled into the bankruptcy.

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