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TX bankruptcy lawyerIf you intend on filing for bankruptcy, then you likely already have a decent idea of what a bankruptcy is. For many people, filing for a bankruptcy is a way to get a fresh financial start and change their lives immensely, yet many people do not actually understand what the process entails. The bankruptcy process consists of various steps that must be taken in order to accurately complete the process. Though the majority of the process consists of paperwork and other administrative tasks, it can be daunting to some, which is why hiring a skilled bankruptcy attorney is recommended.

  • Attend Pre-Bankruptcy Credit Counseling: Before you even begin your case, you are required to complete pre-bankruptcy credit counseling. This is typically one meeting that lasts for an hour or two with a credit counselor who is approved by the U.S. Department of Justice. This course must be completed within six months prior to your bankruptcy filing and usually involves discussing your financial situation and your options for bankruptcy.
  • Prepare Necessary Paperwork: Next, you will need to begin to collect all of the documents necessary to fill out the required paperwork and file your bankruptcy case with the court. This is typically one of the most confusing, yet essential parts of the bankruptcy process and one of the parts that your attorney will assist you with. Your attorney will ensure that the paperwork is properly filled out with information such as your income, your assets, your debts and your spending habits, among other things.
  • File the Petition with the Court: The next step is to actually file your bankruptcy case with the court. Your attorney will also assist you with ensuring your bankruptcy petition is filed correctly with the court to avoid any denials or delays. This is also the step during which you will have to pay filing fees.
  • Complete a Debtor Education Course: In all bankruptcy cases, you will also need to complete a second credit counseling course. The second course is a debtor education course, which is designed to help you make smarter financial decisions as you move forward. This course must also be completed from an approved credit counseling agency and the certificate of completion must be filed with the court before your debts can be discharged.
  • Receive a Notice of Discharge: The final step in the bankruptcy process is to actually have your debts discharged. Once you have completed all of the requirements and you have filed all of the necessary paperwork, your bankruptcy trustee will look over your case and make a decision as to whether or not your bankruptcy is granted. Once your bankruptcy has been discharged, you will receive a notice of discharge in the mail, officially clearing you of all of your included debts.

Our San Antonio, TX Bankruptcy Lawyer is Here for You

Filing for a bankruptcy can be an overwhelming and time consuming process, no matter your situation. If you are considering filing for bankruptcy, you should speak to a skilled New Braunfels, TX bankruptcy attorney before you make your move. At the Law Offices of Chance M. McGhee, we can help you through the process and provide you with assistance wherever it is needed. To begin discussing your case with our bankruptcy attorney, schedule your free consultation today by calling our office at 210-342-3400.

 

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Texas bankruptcy lawyer, TX chapter 7 attorneyAt our firm, we help clients every day with questions and concerns about the bankruptcy process under the U.S. Bankruptcy Code. Our experience has shown us that bankruptcy proceedings are often misunderstood, and unfortunately, misinformation abounds among those considering filing for bankruptcy. If you are thinking about bankruptcy as an option for your situation, it is very important for you to fully understand the potential advantages and disadvantages, as well as what might happen after the proceedings are complete. With this in mind, here are three of the most common myths about bankruptcy, along with the truth about each one.

Myth # 1: My Employer Will Be Notified That I Filed for Bankruptcy

Financial struggles are embarrassing for many people, and the reasons are understandable. As a result, it might be humiliating for you if your employer were to be notified of your bankruptcy filing. The good news is that this myth—albeit common—is just that: a myth. The bankruptcy process does not involve any employer notification whatsoever unless you happen to owe a formal debt to your employer somehow—in which case your employer would be notified, but as a creditor. Bankruptcy filings are public record, which means they could technically be published by the press, but it is unlikely that your employer would have much interest in searching through such publications.

Myth # 2: I Will Never Get Credit for a for a Major Purchase Again

Filing for bankruptcy can certainly have a negative effect on your credit rating, but the effects are temporary. Your bankruptcy will not bar you from ever having the ability to secure credit for major purchases like a home or automobile. For most bankruptcy filers, the credit approval needed to secure a home loan would be possible in about two to three years from the date of their bankruptcy filing. Obtaining approval for car loans and credit cards generally take less than two years. What is most important in re-qualifying for credit is making sure that you are rebuilding your credit properly in the period following your bankruptcy filing.

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bankruptcyDeclaring bankruptcy can get you out of a less-than-favorable financial situation when you are in need, but your circumstances will dictate which type of bankruptcy you are eligible for and how much the bankruptcy will help you. Once you have figured out that you want to file for bankruptcy, you must then determine when your most opportune time to file is. In certain situations, you may want to delay filing for bankruptcy. Delaying your bankruptcy can sometimes allow you to keep more of your money, protect a friend or family member’s money or even increase your chances of qualifying for a Chapter 7 bankruptcy. Here are a few situations in which you may want to consider delaying filing for bankruptcy.

You Paid Money Owed to a Family Member Too Close to Filing

If you pay certain creditors $600 or more prior to receiving a discharge, your bankruptcy trustee could demand the money back from the creditor. This is called a preference because you have put that creditor in a better position than your other creditors. The preference period for most creditors is 90 days prior to filing for bankruptcy. For “insiders,” such as friends or family members, the preference period is one year prior to filing for bankruptcy.

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trusteeThe most common types of bankruptcies that are filed in the United States are Chapter 7 and Chapter 13 bankruptcies. There are many differences between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy, mainly in the way that the debts are handled. While these two types of bankruptcies differ greatly in many aspects, they do have one thing in common -- they both utilize a bankruptcy trustee.

If you have thought about getting a bankruptcy or you have done research about getting one, you have probably come across the term -- but do you know what a bankruptcy trustee is? It is important to understand the role of the trustee if you are getting a bankruptcy or considering one.

What Is a Bankruptcy Trustee?

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Giving a gift, including selling for much less than an asset is worth, may be a fraudulent transfer—treated as hiding assets from creditors.

Most people filing bankruptcy have neither a need nor the desire to hide anything from their creditors. There’s no need because most people’s assets are already protected through state and federal laws. There’s no desire because most people are honest and want to follow the law.

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210-342-3400

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