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How Do Bankruptcies Work?

Filing for bankruptcy is a major step for people to file for bankruptcy. For that reason, it is important for people facing debt to understand how bankruptcy works. The Fort Worth bankruptcy attorney at The Huebner Law Firm, PC explains how bankruptcy works and the things you need to know if you’re considering filing for bankruptcy.

What Is Bankruptcy?

Bankruptcy is a court proceeding where a judge and a court trustee will examine the assets and liabilities of individuals or businesses who can’t pay their bills. Bankruptcy allows you to discharge debts so that your no longer legally required to pay them. The American Bankruptcy Institute (ABI) conducted a study of the public court records from 2016 and discovered that 95.5% of the 499,999 Chapter 7 bankruptcy cases decided that year were discharged—this means that they didn’t have to pay back the debt they owed. Nearly half of the individuals who filed for Chapter 13 bankruptcy were discharged.

Although bankruptcy is a ticket to start over, it can have repercussions. For example, it will affect your credit and future ability to use money. It is important to have an attorney inspect your case and help you determine if filing for bankruptcy is the best option for you.

How Do Bankruptcies Work?

Filing for bankruptcy starts by compiling all your financial records, such as your debts, assets, income, and expenses. By doing so, you can get a better understanding of the amount of debt you have and how much of it you can pay off with your income. Then you must obtain counseling from an approved provider because the court wants to make sure that you’ve exhausted all possibilities of finding a different way to handle your debt.

Then you can file the petition for bankruptcy. Having legal counsel in this stage can help you prevent mistakes during your bankruptcy process. An attorney can help you understand federal or state bankruptcy laws and can help you determine which debts can or can’t be discharged. They can also help you determine which bankruptcy is best for you depending on your circumstances. If your petition is accepted, you will be assigned to a court trustee who will set up meetings with your creditors.

Fort Worth Bankruptcy Attorney

If you’re struggling with debt, you don’t need to feel alone. The team of Fort Worth bankruptcy attorneys at The Huebner Law Firm, PC understands the stress and anxiety that comes with financial difficulties. For that reason, we are here to help you determine if filing for bankruptcy is the best option for you. We also advocate for you, and we guide you through the legal process to help you obtain the financial freedom you’re looking for. With over 20 years of experience, we’ve been helping families like yours eliminate debt, maintain properties, and eliminate creditor harassment.

Get financial freedom by contacting our Fort Worth bankruptcy attorneys today at (817) 576-1889!

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