Being in debt can be stressful. Creditors call constantly and once an unpaid debt gets old, it’s likely to be sold to a collection agency. These agencies may even sell the debts. Knowing who is calling and what debt they are trying to collect can get confusing after a while. For those who don’t have enough money to pay the debts, the demands collectors make might be overwhelming. Instead of continuing to deal with creditors and collection agencies, a person in this situation should schedule a consultation with an attorney to learn more about bankruptcy in Denton, TX.
Bankruptcy Basics
The first thing a person with a lot of debt needs to know is that bankruptcy is a possibility for them. However, not everyone is eligible to have their debts discharged through chapter 7 bankruptcy. Those who are eligible for chapter 7 may not be able to keep their home or personal property, regardless of whether that property is paid in full. The trustee sells nonexempt property in chapter 7 cases in order to repay creditors.
Chapter 13 bankruptcy may be an option for those who don’t qualify for chapter 7 as well as those who don’t want to give up their personal property to chapter 7 bankruptcy in Denton, TX. The drawback of this option is that people who file for chapter 13 bankruptcy have to make payments on their debts. The repayment plan can last from three to five years. Any balance left over on any unsecured debt after the term expires may be discharged.
First Steps
People with debt they can’t afford to repay should consult with the Law Firm of David S. Kohm. The consultation is free and during this meeting, clients can learn about the bankruptcy process and what they need to do next.
Bankruptcy isn’t the right choice for everyone, and consulting with an experienced attorney is the best way to learn about the best option. Whether an individual or couple chooses bankruptcy or some other option, an attorney may give them advice about how to deal with their debt so they don’t have the same kind of problem in the future.
