From the unanticipated loss of your job to medical problems and lawsuits, there are various reasons why you may have found yourself facing financial hardships. Unfortunately, financial problems can spiral out of control and snowball into an even larger crisis. If you are facing financial difficulties, you may be considering bankruptcy. At The Law Office of Douglas J. Powell, P.C., we know how beneficial this route can be for people who are struggling in Austin, and across the state of Texas. For some, Chapter 7 is the right approach, but it is important for you to carefully go over your different choices beforehand.
You may see that companies in Texas and throughout the nation are filing for bankruptcy, as reports are published in the news on a daily basis. From small businesses to large corporations, some companies can no longer take the financial burdens of operating and file for bankruptcy as a way to gain freedom from their financial burdens. The result of filing for bankruptcy, however, differs depending on what type of business you have, as well as what Chapter of bankruptcy you file for.
If you are stuck behind a wall of medical bills, expenses and debt, you are not alone. According to a study that analyzed data from the Centers for Disease Control and Prevention and the U.S. Census, medical debt is one of the largest contributors to bankruptcy. In fact, nearly 2 million people declare bankruptcy each year as a result of unpaid medical expenses. Approximately 56 million adults will continue to struggle with medical debt without filing for bankruptcy. These numbers are not restricted to people who do not have health insurance, but affect fully-covered people as well. What causes these extreme medical bills?
If you are considering bankruptcy as a way to free you from extensive amounts of debt, you will want to consider all of the types of bankruptcy before deciding which is right for your particular situation. Chapter 7, or liquidation bankruptcy, is the most common in the United States, as it allows people to discharge their debt and move on with their lives. This type of bankruptcy, however, comes with the risk of losing property. According to U.S. Courts, the trustee presiding over the case has the ability to repossess and sell unprotected property, then redistribute the funds to creditors as partial repayment of debt. It is important to know exactly how this liquidation bankruptcy works.
People who are looking for a way to unbury themselves from their surmounting debt may find relief in filing for bankruptcy. Once a Chapter 7 bankruptcy has gone through the entire process and is discharged, you will be given a clean financial slate and a second chance. Once you have filled out and submitted your initial bankruptcy paperwork, a trustee will be appointed to your case. These designated officials are crucial to the outcome of your case, and it is important to know their role in the bankruptcy process.
When a financially distressed individual makes the decision to pursue a fresh start via Chapter 7 bankruptcy, it's important for them to understand that while the process will likely prove to be both mentally and even physically exhausting, it can also prove to be potentially life changing.
While some people may dread filing for Chapter 7 bankruptcy and use it as a last resort in trying to clean up their extensive financial obligations, there are several ways that filing for bankruptcy can be beneficial. People who have a bankruptcy on their record will notice a decrease in their credit score, and may find it hard to be approved for home mortgages, car loans and other financial loans. Chapter 7 bankruptcy, however, allows people to climb out from beneath a pile of financial debt, and gain their footing when it comes to beginning a new future free from debt.
If you are caught in financial turmoil with excessive credit card payments, medical bills, mortgages and other expenses, you are not alone. According to U.S. Bankruptcy Courts, 833,515 people filed for bankruptcy in a 12-month period ending March 2016. Of that number, approximately 523,394 people filed for Chapter 7 bankruptcy, while 302,193 people filed for Chapter 13 bankruptcy. Bankruptcy is designed to help people regain their financial bearings and climb out from under the pile of creditors and debt. There are significant differences between the two most popular types of bankruptcy, and you should understand these variances in order to choose the one that best fits your specific situation.
If you file for Chapter 7 or Chapter 13 bankruptcy in Texas, you will be required to attend a meeting of creditors as part of the bankruptcy process. The meeting of creditors gives creditors, as well as the trustee, an opportunity to ask questions regarding the bankruptcy.
Whether you have already filed for bankruptcy or you are simply considering beginning the bankruptcy procedure, you might know what it is like to be inundated with harassing calls from creditors. Creditors in Texas and across the country often use a variety of measures to contact debtors in an attempt to retrieve owed funds. In addition to constant phone calls to your home, cellphone and work, you may get threatening letters in the mail. Ultimately, you may avoid answering your phone or stop getting the mail in order to bypass all of the negative creditor harassment.