A job loss or an unexpected emergency can be a devastating event for families that live paycheck to paycheck. In these situations, it can be difficult to keep up with bills and other debts. In no time at all, these debts can become a serious burden that can compromise a person’s ability to support themselves or their family. In these situations, bankruptcy in Fort Worth may be an option.
What Is bankruptcy?
Bankruptcy in Fort Worth is a process through the court system. This process provides a method for many people to manage debt and remove the complications and limitations placed on them due to such debt. This process requires filing and submitting all debt and personal income documentation to be reviewed in the court system to determine the best method for relieving the debt. The options for relief often depend on whether it is a chapter 13 or 7 bankruptcy.
Chapter 13
This type of bankruptcy is for those with a steady income. The court will review all debt versus income and help the person come up with a plan for repayment. The debtor, often with legal help, will come up with a plan to repay the debt within a three- to five-year period in affordable installments. During the repayment plan, creditors can not start or continue collection proceedings. This can help reduce the stress and allow a person to pay off their debt.
Chapter 7
This type of bankruptcy is for those with little or no income available to pay their debts. A filing must be done that shows proof of income as well as all debts owed. If there is any property, outside of exempt properties, it must be liquidated. The funds, if any, from this liquidation will be used to pay off creditors. Any remaining debt can be discharged by the courts. This can help give a person with little or no income the opportunity to begin fresh.
This process can be difficult and confusing. Fortunately, there are attorneys that can assist with every aspect of the process, including representing the debtor in court hearings. For more information about bankruptcy, visit .
