In Texas, consumers gain assistance through a bankruptcy claim. These cases help them settle their debts efficiently and it prevents them from incurring further late fees and charges. It also helps them to acquire a repayment plan that meets their financial circumstances. A Bankruptcy Attorney in Tyler, TX helps these consumers proceed through the claim’s process.
Eligibility Requirements for Bankruptcy
Chapter 13 bankruptcy requires them to possess an income that is greater than the median. The current median income for Smith County is $47,a745. Any consumer with an income over this value is eligible to file a chapter 13 bankruptcy.
Chapter 7 is the alternative for chapter 13. Consumers who don’t qualify for chapter 13 are eligible for chapter 7 typically. However, they must own enough assets or properties to sell. The proceeds from these sales must provide a value that will settle the consumer’s debts.
What Is Involved in Chapter 13?
Chapter 13 is a structured repayment plan during which the consumer provides monthly payments to the court. The funds are divided between the debts included in the claim. The court determines the value of these monthly payments. The consumer must also use their disposable income to pay additional debts.
The chapter provides an automatic stay for homeowners, which prevents a possible foreclosure or repossession throughout the entirety of their case. Chapter 13 cases can last up to five years.
What Happens in Chapter 7?
Chapter 7 bankruptcy requires the consumer to provide the court with titles and deeds for chosen properties. These items are sold through the court by a trustee, who manages the distribution of funds to the creditors. These cases provide an automatic stay for up to six months, and once it is discharged, any outstanding debts are the responsibility of the consumer.
In Texas, consumers could become debt-free through a bankruptcy claim. These opportunities allow them to restructure their payments or settle their debts through liquidation, and they may reduce the total value owed to select creditors. Consumers who want to file a claim should contact a bankruptcy attorney in Tyler, TX or Visit William Lively Law Firm today.