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Bankruptcy consultation Austin TX to provide relief to individuals from overwhelming debt burden

 Many people facing the challenge of managing their overwhelming debts resort to bankruptcy to get relief from debts that they cannot repay. This legal process is designed not only to give relief to the creditors but also ensure that creditors receive some payment based on the borrower’s financial situation and assets. One of the key benefits of bankruptcy consultation Austin TX with an experienced law firm, such as Recovery Law Group, is that your attorney will help halt all creditor actions against you, including foreclosure, repossession, wage garnishments, and harassment calls.   

  

Majority of bankruptcy cases filed in Austin TX are under Chapter 7 of the US Bankruptcy Code. It allows for the complete elimination of covered debt, and is available to those whose monthly income is below the state’s median income for their household size. If your income is above the state’s median income, you may still qualify for Chapter 7 during your bankruptcy consultation Austin TX, but for this you will have to take a Means Test for this. The test calculates your disposable income after considering your household expenses, and other financial obligations. Means Test also ensures that the bankruptcy laws are not misused by the debtors.   

  

Certain assets are exempt   

As you will come to know when you file for bankruptcy consultation Austin TX, you will come to know that certain assets are exempt, such as tools of trade, household furniture, and an automobile of a certain value. If your assets exceed the available exemptions, your Recovery Law Group’s attorney may be able to help you with pre-petition planning during bankruptcy consultation Austin TX, to allow you to properly exempt and keep your assets. Some of the exempt assets include a certain amount of equity in your home, household items and personal effects, a certain portion of your wages, health aids, tools of trade, and insurance policies. Even nonexempt property might be safe from liquidation if it is not deemed worthwhile for selling by the federal court’s appointed trustee.   

  

Extended time to repay debts   

If you do not qualify for Chapter 7 bankruptcy, you may be suggested to file for it under Chapter 13 during bankruptcy consultation Austin TX. You will be given an extended time of three to five years to repay what you owe, after the bankruptcy court issues its ruling. You can make delinquent payments over time, but all new mortgage payments must be made on time. Moreover, the flier must show that they have means to make monthly payments after meeting their essential living expenses. If you will also have to submit proof of filing federal tax returns for the past four years.  

  

Trustee to oversee repayments   

Your attorney providing bankruptcy consultation Austin TX will also tell you about debt limitations under Chapter 13 bankruptcy, which change every three years. Under this wage earner plan, the flier pays a certain monthly amount to a trustee, who then pays to the creditors. This bankruptcy is best suited to avoid forced sale of the debtor’s home, which Chapter 7 can’t do. Once all the obligations under the repayment plan are met, the debtor may receive a discharge. Creditors are not allowed to have any direct contact with the debtor, and they must go through a trustee instead.   

 

  

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