For those consumers who are over the typical debt amounts, you could become discouraged quickly while you make payments.
An Overview of Bankruptcy
Bankruptcy provides an opportunity for a client and an attorney to build a repayment plan or a protection under chapter 7 that allows anyone in debt that finds themselves unable to handle repaying creditors on their own. This helps to resolve debts in a couple different ways. In chapter 13, the repayment is divided among creditors. Typically, secured creditors are handled with priority, and there are other creditors like IRS or other secured creditors. This repayment is supervised by the trustee’s office with the division to creditors being treated as fairly as possible. The trustee’s office is incentivized to look out for unsecured creditors through the means of the trustee’s office receiving 10% of everything that runs through the plan. The secured creditors do not need as much of an advocate because they have the right to repossess the security collateral if the debtor does not pay. On the other hand, a good dallas bankruptcy lawyer will have the legal responsibility to get the best possible financial outcome for the debtor whom they represent.
Additionally, there are some select bankruptcy proceedings which provide a method for the debtor to remain in business as a small business and through chapter 11, they can resolve debts and remain solvent. Additionally, one major use of bankruptcy is something that debtors use in order to break free through a bankruptcy discharge for eliminating financial obligations or forcing creditors to be more flexible with debts which the small business has accumulated over time. Once assets and monthly cash flow have been distributed, there would be a discharge, regardless of whether the debts had been completely paid.
Call a Competent Texas Bankruptcy Attorney For Legal Advice
Receive information about your specific situations through the guidance of a qualified attorney licensed in federal bankruptcy court.