If an individual wants to get a fresh start in their financial situation, chapter 7 bankruptcy in Arlington, TX can help. This type of bankruptcy will liquidate any assets that are not exempt to pay creditors. Chapter 7 is ideal for an individual who has a lot of unsecured debt like credit cards. Certain items can be retained by an individual who files bankruptcy, such as a car, furniture or their house if they reaffirm the debt. In an individual reaffirms their debt, they have to bring the payment to a current status and will not be able to file bankruptcy for another eight years.
Debts That Cannot Be Discharged
Although chapter 7 bankruptcy in Arlington, TX can wipe out a lot of debt, certain debts will not be eliminated. Alimony, student loans, certain taxes, child support, and fraudulent debts cannot be discharged. It’s very important to discuss the options of filing bankruptcy with an experienced lawyer when debt is overwhelming.
Are There Other Types of Bankruptcy?
There are other types of bankruptcy available to an individual to eliminate their debt, but they’re different from a chapter 7 bankruptcy. Chapter 13 bankruptcy is another popular choice for individuals who currently own assets they don’t want to surrender to a credit. It’s the only way for many individuals to retain their home, car, or other assets.
Chapter 13 Bankruptcy
Unlike chapter 7 bankruptcy that completely erases an individual’s debt, chapter 13 requires an affordable payment program to be established to pay off debt. This payment plan is usually from three to five years. If an individual successfully makes all of their payments, the remaining debt will be eliminated.
How Can Someone Decide Which Type of Bankruptcy to File?
It’s very important to discuss bankruptcy options with an experienced attorney. They will evaluate an individual’s financial situation and advise them what their next step should be. If the individual wants to keep their house, but wants jewelry or other items to go back to the creditors, bankruptcy will permit that.
The Law Firm of David S. Kohm has years of experience representing individuals who want to become debt free. If you want financial freedom from overwhelming debt, give them a call today.