Filing For Bankruptcy In Dallas

As a bankruptcy attorney in Dallas I have consulted hundreds of homeowners trying to stop foreclosure after being denied a loan modification. While these homeowners followed their lenders directions to the tee in an effort to avoid foreclosure, they ended up with a foreclosure sale date hanging over their head. The unfortunate thing is they trusted their lender to act in their best interest and now may lose their home to foreclosure.

Can I Still benefit from a Chapter 13 Bankruptcy if I make too Much Money to File a Chapter 7?

Even if a debtor is disqualified from filing a Dallas Bankruptcy based on income there are still significant benefits which can be achieved by filing a Chapter 13. In fact, being disqualified from a Chapter 7 may not turn out to be a disadvantage at all if the filer has a significant equity value in assets beyond a home and an automobile. While a filer’s home and a vehicle can generally be retained under both types of bankruptcy filings as long as their equity doesn’t exceed bankruptcy code limitations, a Chapter 13 filing will provide advantages in areas of asset valuations and assets which are considered to be non-exempt in a Chapter 7 Bankruptcy. Antique collections, second homes, and rental properties can be retained in a Chapter 13 but would have to be surrendered to the court in a Chapter 7, for example.

These advantages are maximized in a Chapter 13 Bankruptcy when there are extensive assets with attached equity over and above the valuation caps placed on assets in a Chapter 7 filing. The flexibility of these asset valuations is then combined with a repayment plan set by the court for debts listed in the filing. Additionally, the repayment of court-reduced debts under Chapter 13 reorganization carries certain advantages over the discharge of debt commonly seen in Chapter 7 Bankruptcies. The main advantage here is that a Chapter 13 Bankruptcy typically shows on credit reports for around seven years as opposed to the ten year duration for a Chapter 7. This allows for an earlier start and a faster rebuilding process for a filer’s credit score.

A Chapter 13 filing can also allow for the “cram-down” of auto loans which can result in much lower payments and a reduction of the outstanding balance on the way toward paying off the vehicle in full. A cram-down requires that the vehicle must have been purchased at least 910 days prior to the filing of the Chapter 13 bankruptcy. In a cram-down, the loan balance is reset to the vehicle’s current market value. The remaining payment period can also be extended, lowering payments and saving thousands of dollars for the filer.

There are other benefits of Chapter 13 Bankruptcies as well including the stopping of foreclosure proceedings and the discharge of subordinated mortgages which have become unsecured due to a decrease in the value of the associated property. A Chapter 13 bankruptcy is usually far more complicated than a Chapter 7. To ensure the best results, insist on working with an experienced bankruptcy attorney.

Pros of Filing For Bankruptcy

There are certainly a lot of negative aspects to being in this situation, but there are a lot of pros to filing for bankruptcy once you’ve gotten into a situation to be considering it.

Your creditors will stop calling you. Chances are that you are well aware that you owe money–but creditors are still calling you, constantly. This will stop once you file.

You can stop focusing on your past problems. You’ve probably been pretty focused for a while on trying to fix these problems, but you can finally let go of that move on–this will be a huge relief. There will still be much to do, don’t be mistaken about that, but at least it will be moving forward instead of constantly looking back and being stuck.

Instead, you can start focusing on rebuilding your finances. This will be difficult, but at least it’s in the right direction. It will take a while to build up a decent credit score and be able to make any big financial moves again, but at least you’ll be moving forward. Staying stuck in the same situation, and possibly digging yourself into deeper trouble, will certainly not be moving you forward, and probably will only be delaying the inevitable and taking longer overall.

Often while we’re trying to put off having to file for bankruptcy and make such a big decision, we end up getting further behind and racking up more debt. Once it’s gotten to a certain point there may be no other way out. By filing for bankruptcy you can get out of the situation, start moving forward and building a new life instead of letting this drag on further.

While it is certainly a hard decision to make with many downsides, there are a lot of pros to filing for bankruptcy.

Do I Need Denver Bankruptcy Attorneys To File For Bankruptcy?

If you are a resident of Denver and are about to start the process of filing for a chapter 7 or chapter 13 bankruptcy, then the answer to the question of needing Denver bankruptcy attorneys to file is no, you do not. Individuals may file on their own. However, for those uninitiated in the Denver legal system, it can be very confusing to make your way through the proceedings, and it is very likely that you will miss out on all of the financial relief for which you are allowed under the current bankruptcy laws. It is for this reason that many Denver residents turn to Denver bankruptcy law firms for help.

There are several steps in the process to file bankruptcy. Denver residents who are not attorneys will want to seek the counsel of bankruptcy lawyers. Denver attorneys who are well acquainted with the bankruptcy court and the laws that preside there can help you through the meetings, classes and forms that must be filled out.

Before you can get to the point where your debt is discharged, there are several steps that must happen first, which will be explained to you by bankruptcy lawyers. Denver residents will first meet with an attorney at Denver bankruptcy law firms and take a credit counseling class, either by yourself if you want to file as an individual or with your spouse if you jointly will file bankruptcy. Denver residents after this will meet again with your Denver bankruptcy law firms’ lawyer, who will need to see your bills, tax returns for the last two years, social security card and driver’s license in order to help you fill out all of the necessary paperwork needed to file bankruptcy. Denver homeowners then have the option of filing the paperwork with the bankruptcy court themselves, or having it done via the Internet by your bankruptcy attorneys. Denver residents will then get ready to meet with their creditors with the help of their bankruptcy lawyers.

Denver lawyers attend that meeting at the courthouse with you, which can be a little frightening for those who have never been through this before. At this meeting, more information may be needed, and this can be handled professionally by your bankruptcy attorneys. Denver residents then spend time attending another credit counseling class, receiving a certificate for completion, and then making sure to send it to your bankruptcy lawyers. Denver homeowners then have to wait for a period of time, during which your creditors may object to you getting a discharge. If this happens, you will need to go back to court with help from your bankruptcy attorneys. Denver residents who go through this time period with no objections may either get their discharge notice immediately, or after making payments on a payment plan for an agreed upon length of time, after which you should then get the relief that they need to move on with life.