Filing for bankruptcy isn’t something that a person should go into lightly. That’s why it’s important to speak with an attorney that understands the bankruptcy process. Not just to determine if bankruptcy is needed in a particular situation, but also what type of bankruptcy a person or a business needs to file for. Many people might be surprised to know that there are different types of bankruptcies, and that different bankruptcies apply to different financial situations. However, for individuals dealing with excessive debt, the most common type would be chapter 7 bankruptcy.
Chapter 7 bankruptcy is the most common for people who meet the income restrictions. People that make a great deal of money may not qualify for filing chapter 7 bankruptcy in McKinney, TX. However, in most personal bankruptcy instances, this is often the best way to go.
Chapter 7 helps to legally discharge most existing revolving credit debts and, in some cases, it can also help to pause the foreclosure process by the bank. There are instances where extra income or the proceeds from the sale of excess assets can be used to repay some of the debt a person has accumulated. However, in most cases, unless a person has an excess amount of possessions, or inherits a windfall of cash, most of these debts are legally discharged by the courts and are no longer collectible.
There are many things that are involved in a chapter 7 bankruptcy proceeding. There’s a great deal of paperwork, filers of chapter 7 will need to attend credit counseling courses as prescribed by the courts and there may be a number of different court appearances that the clients and the attorney handling the chapter 7 bankruptcy in McKinney, TX will be required to attend.
Filing for bankruptcy can be difficult. Many people feel that they have failed financially, and some people feel a certain amount of embarrassment. However, it’s important to put those feelings aside and do what is in your best interest. In many cases, bankruptcy is the only option available. If you’re facing a financial situation that you don’t have much hope that it will be solved, you may want to schedule a free consultation with an attorney at to discuss your financial situation and how you need to proceed.
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