In Texas, consumers can protect their home and automobiles by filing for bankruptcy. These cases give them an automatic stay. This stay stops creditors from starting the repossession or foreclosure process. The following are questions that consumers should ask a Bankruptcy Lawyer in Fort Worth about these cases.
Can Consumers with Higher Incomes Choose Either Chapter?
Yes, if the consumer qualifies for chapter 13, they have the option to choose chapter 7. However, they must possess enough assets to generate the right volume of funds to settle their debts. The attorney reviews the market value of the consumer’s assets and compares it to their debts. In some cases, the consumer may choose to sell a limited amount of assets to settle higher valued debts only.
How is Disposable Income Calculated?
The disposable income is calculated according to the monthly obligations of the consumer. All necessary household expenditures are deducted from their income. The value of the monthly payments for the bankruptcy is also deducted. Any value left over after these requirements are met is considered disposable income. The consumer must use this value to pay off any debts that weren’t included in the claim.
What Debts are Likely to be Discharged?
The most likely debts that are discharged are unsecured credit cards. The primary reason for the discharge is that the creditor can file an insurance claim and collect the total value of the debts. They may also acquire the cash value through the sale of the account to debt collection agencies.
What Happens if Some Debts aren’t Included?
Any debt that isn’t included in the bankruptcy claim is the direct responsibility of the consumer. They must pay these payments as outlined by their creditor. Any legal action taken by creditors that weren’t included in the claim cannot be stopped through the bankruptcy.
In Texas, consumers can eliminate debts through their preferred bankruptcy chapter. These claims also present the opportunity for a discharge for certain debts. In some cases, the consumer can become 100% debt free.
