For those seeking a fresh financial start, Austin and Fort Worth offer affordab

1. For those seeking a fresh financial start, Austin and Fort Worth offer affordable bankruptcy consultation services Bankruptcy can be your only option if you are overburdened with debt and are not able to pay it off despite your best efforts. The legal process of bankruptcy is intended to accomplish two goals. It helps creditors deal with an insolvent debtor in the first place, and it gives the individual debtor or firm a second chance to turn around their financial situation. In accordance with the US Bankruptcy Code, federal courts handle all bankruptcy proceedings. Your attorney may advise you to file for Chapter 7 bankruptcy, which is liquidation, or Chapter 13 bankruptcy, which is reorganization, during your bankruptcy consultation in Austin, Texas. Your nonexempt assets are liquidated to settle creditors' debts under Chapter 7 bankruptcy. Essential assets, such a primary residence or a car that is valued below a specific amount, could, nevertheless, be excluded from the liquidation procedure. Most unsecured debts, including credit card debt, medical expenses, personal loans, and overdraft protection, may be eliminated under affordable bankruptcy Forth Worth, TX. If you cannot demonstrate that repaying your student loans will cause you excessive financial hardship, your student loans will not be dismissed through Chapter 7 bankruptcy. Furthermore, you won't lose your car under Chapter 7 bankruptcy if any equity in it is covered by your state's bankruptcy exemption. Your house is the same. You are allowed to keep your house as long as the equity is less than the state exemption and your payments are up to date.

2. In order to apply for bankruptcy under Chapter 7, you must pass the Means Test, which consists of the three requirements listed below: Test 1: The Over/Under: You will move on to Test 2 if, during the preceding six months, your total household income exceeded the yearly median income of your state; otherwise, you will not. Test 2: Also called the Disposable Income Test, it determines how much money is still available to you after subtracting the IRS-approved expenses. In that situation, your bankruptcy consultation Austin TX may recommend Chapter 13 bankruptcy. Although the majority of debtors do not pass Test 2, knowledgeable bankruptcy lawyers, like those at Recovery Law Group, will make every effort to ensure that you pass the Disposable Income Test. Test 3: Not Enough Disposable Income to Matter: According to the US Bankruptcy Code, you are most likely a Chapter 7 bankruptcy if your monthly disposable income multiplied by 60 is less than a specific amount. During your bankruptcy consultation Austin TX, you can be told to apply for Chapter 13 bankruptcy if you have enough money each month after your usual essential bills. Often referred to as wage earner's bankruptcy, Chapter 13 bankruptcy allows you to reorganize your debts and grants you an extended repayment period of three to five years. You will be able to prevent foreclosure on your house by working with the debtors and a court-appointed trustee to develop a repayment plan.