The decision to consider bankruptcy is not one that most people approach until they feel there is no other way to deal with their debts. At that point, they need advice from Mckinney TX’s Best Bankruptcy Lawyer. Here are some examples of what that lawyer can do to help them decide if bankruptcy is really the best alternative.
Assessing the Finances of the Client
As part of the initial consultation, Mckinney TX’s Best Bankruptcy Lawyer will need to explore every aspect of the client’s financial situation. This will involve providing details about every debt that is currently owed, including the balance and whether or not the account is already in arrears. Data about the income level and the month to month expenses associated with rent or mortgage payments, food, and utilities is also necessary. The goal is to determine if the client currently meets the qualifications set by the state to qualify for any type of bankruptcy protection.
Choosing the Right Form of Bankruptcy
Once the lawyer determines that bankruptcy is a viable option, the next step involves exploring which type of bankruptcy is in the best interests of the client. For those who qualify for Chapter 7 protection, this is most likely the best way to go. Depending on the assets held by the debtor, the court could order some of them sold to help partially settle the balances owed to creditors, then dismiss the remainder. The lawyer can help the debtor understand which assets would be considered exempt from sale, and which ones would have to be handed over to the court. If Chapter 13 is the only real option, the lawyer will help the client understand how this approach helps to stop the application of more interest to the balances owed, and how the debt is paid over time by remitting regular payments to the court for distribution to those creditors. In the right circumstances, bankruptcy provides the opportunity for people to put past financial issues behind them and get a fresh start. Once the bankruptcy is approved, it will be much easier to apply the lessons learned in the past, start over, and begin to rebuild a measure of financial security. For more details Click Here.
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