Consumer or Personal Bankruptcy in Tyler TX occurs when a person is seeking relief from debt. It differs from business bankruptcy in that the filer’s personal assets may be seized; when a business goes bankrupt, it’s the business’ assets at risk. A personal bankruptcy usually involves either Chapter 7 (liquidation) or Chapter 13 (reorganization). Under a Chapter 7 filing, certain debts may be discharged, but certain property may be seized. In Chapter 13, filers are given time to repay creditors.
When to File
Many people are reluctant to file for Personal Bankruptcy in Tyler TX, even if their debt is substantial. Some use it only as a last resort, as there are negative connotations to “going bankrupt”. However, bankruptcy does offer certain advantages. As mentioned earlier, certain chapters can help to eliminate most debt while keeping many assets. Secondly, bankruptcy can prevent lenders from seizing assets or making collection attempts while the case is ongoing. Some people choose to file for bankruptcy to allow themselves time to reorganize their finances; clients should only file if they understand the effects of each chapter.
Determining Eligibility for Bankruptcy
Finding out whether you are eligible for bankruptcy depends on the chapter under which you wish to file. Some chapters, like Chapter 7, require you to complete a lengthy analysis called a means test. The test assesses your financial history, and is best accomplished with the assistance of an accountant and/or a lawyer. Those who have previously filed for Personal Bankruptcy in Tyler TX may not be immediately able to file again, as there is a waiting period. People filing multiple times may need to consult a bankruptcy attorney to determine eligibility.
I Want to File for Personal Bankruptcy in Tyler TX. Do I Need a Lawyer?
For many wishing to file for personal bankruptcy, the biggest obstacle is that they may not be able to get professional advice and assistance. This often puts individuals at a disadvantage; businesses usually have access to financial advisors. You may want to hire a bankruptcy attorney if you need legal guidance and representation during your case. Your lawyer can help to protect your rights and interests, both in and out of court.