When most people unfamiliar with bankruptcy think about what it means, they tend to imagine the specifics of Chapter 7 bankruptcy. After all, this is the most common type of bankruptcy, in which a debtor liquidates their nonexempt assets to pay back creditors and in exchange gets many of their debts discharged. Chapter 7 is a good option for many people, but it may not be the right option for everyone. Chapter 13 bankruptcy is also a powerful tool for individuals facing significant debts. For some, Chapter 13 might be the best choice, and for others, it could be the only option available. A knowledgeable Wise County, TX Chapter 13 bankruptcy attorney can review your financial situation and advise you on what type of bankruptcy might be best to file for.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy allows individuals to make a court-approved payment plan to repay their debts over three to five years. Chapter 13 is sometimes called the "wage earner’s bankruptcy" because it tends to be a good fit for people with a steady income to make the monthly payments.
If you face financial troubles and significant debt, you may be considering bankruptcy. In this stressful time, you will have some difficult decisions to make, about whether to file for bankruptcy at all, what chapter bankruptcy to file, and other smaller but no less significant concerns. One important decision you will make is what bankruptcy attorney to hire. Given all that is at stake, this may also be a difficult decision to make, especially when you want to maximize your chances of success by working with a good attorney but you do not know where to start. A knowledgeable Fort Worth, TX bankruptcy attorney can answer any questions you may have.
Key Traits to Seek in Your Bankruptcy Lawyer
Experience
Bankruptcy is a complex and somewhat "niche" area of law, and a good bankruptcy lawyer will have plenty of specific experience in this area of law, in and outside the courtroom. They should have experience handling bankruptcy cases like yours, whether you file for Chapter 7, Chapter 13, Chapter 11, or another type of bankruptcy. At the same time, they will be able to advise you on other areas of law that may be affected by your bankruptcy, such as divorce and bankruptcy, or tax issues and bankruptcy. They will also be able to advise you on alternate solutions to debt problems, like foreclosure defense.
If you are struggling to make your mortgage payments, there are legal avenues that can offer you relief. One such avenue is a loan modification. Successfully negotiating a loan modification with the owner of the loan can not only keep your home out of foreclosure–with all the peace of mind that brings–but also lessen your financial burden. Yet getting a loan modification is not a cut-and-dry process, nor is it certain that you will be granted one. If you are considering this, speak with an experienced Dallas, TX mortgage modification attorney to understand your options.
What Is a Loan Modification?
When you receive a loan modification, the lender agrees to change the terms of the loan, usually by reducing monthly payments, lowering the interest rate, extending the term of the loan, or forgiving some of the principal you owe. Any late fees are usually added to the principal in a loan modification.