Texas Bankruptcy Blog : Texas Bankruptcy Lawyer & Attorney : Fears Nachawati law Firm : Chapter 7, Chapter 13, Consumer Bankrutpcy : Dallas, Fort Worth, Austin, Houston, San Antonio

When you are experiencing a financial crisis you may feel like you are the only one in that situation. The reality is that many people are feeling the current financial crunch for one reason or another. So whether you live in Dallas or any other part of the country, you are not alone!

The following top five reasons seem to be the most common reasons why many people are filing for bankruptcy:

1. Wiping the slate clean. The goal of a discharge is to reduce debt to give you a fresh start.

2. Stop foreclosure or sale of your home.  If your home is in foreclosure a Chapter 13 bankruptcy will stop the foreclosure any time prior to the sale.

3. Prevent repossession of your car or other property. If the bankruptcy is filed quickly enough it can effectively force the creditor to return your car or other personal property.

4. Stop aggressive collection efforts by creditors. Often, creditors will call the home of a debtor at all hours and behave in an abusive manner. Bankruptcy will help stop the harassing phone calls and other aggressive behavior by creditors.

5. Restore or prevent your utilities from being shut off. Filing bankruptcy can prevent the utility company from pulling the plug on you.

If you are experiencing a financial crisis, contact bankruptcy law firm, Fears | Nachawati, toll free at 1.866.705.7584 or info@fnlawfirm.com for a free bankruptcy consultation.

What bankruptcy can do for you

When filing for a Chapter 7 or Chapter 13 bankruptcy you get immediate protection from creditors against collection efforts against liens on your assets or paycheck. A creditor is considered anyone you owe money to whether it be a credit card debt or a judgment from a civil law suit.

If you file for a Chapter 7 your debts are discharged and you are no longer obligated to pay the debts. In a Chapter 13 case you will have the opportunity to set up a payment plan that can last 3-5 years. Debtors who want to save their home or have IRS debts typically file for a Chapter 13 bankruptcy. This type of bankruptcy will freeze a foreclosure and relieve an individual of liens on their paycheck or bank account.

What bankruptcy can do for you

Unfortunately, even bankruptcy cannot absolve you of the following debts:

• Child support
• Spousal support/alimony
• Fines resulting from criminal cases

Student loans and IRS debts are usually not discharged but can be under specific and limited circumstances.

For a free bankruptcy consultation and to receive information on what bankruptcy can do for you, contact bankruptcy law firm, Fears | Nachawati, by calling our toll free hotline at 1.866.705.7584 or by e-mailing us at info@fnlawfirm.com.

One of the reasons many people rush to filing bankruptcy is to discharge a lawsuit. While this may be a good way to avoid a garnishment from a judgment, it can be a complicated process that should be handled by an experienced bankruptcy attorney. You may have questions such as:

Do I have to file bankruptcy before my creditor gets a judgment?  

In general a debt represented by a judgment is just as dischargeable as the same debt prior to entry of judgment.  Note, however that there are some exceptions dependent on the type of bankruptcy that you file.

Will bankruptcy stop garnishment on a judgment against me?  

Bankruptcy will terminate garnishments as to wages earned after the filing of the bankruptcy.  Wages earned before the filing may be recoverable from the sheriff or the creditor if those wages would otherwise have been exempt. 

The only possible exception concerns child support collections. In such cases it depends on what chapter bankruptcy case is selected and whether the support first came due before the commencement of the case, etc.

A consultation with a Dallas & Ft. Worth area attorney can help answer these and many other questions in more detail. For a free bankruptcy consultation to learn more about discharging debts through bankruptcy contact Fears | Nachawati Law Firm, (866) 705-7584.