Every day, personal or consumer bankruptcy has been declared by individuals and couples allowing them to clear away otherwise overwhelming debt. However, the price for declaring bankruptcy can be high and all too often people choose bankruptcy when other, more viable options are available.
You can find out more by consulting the Houston Bankruptcy law firm that is here to help you. Your Houston bankruptcy lawyer is waiting right now to offer consultation for your particular situation.
What is Personal Bankruptcy?
Essentially, this is a declaration by an individual or couple where they file a petition with the court in order to discharge the debts that they owe. The proceedings in court will allow for the debt to either be eliminated or made into payments that are easier for the person or couple to manage under their budget all under the protection of the court. If the debts have been fully discharged or eliminated, the creditors are not allowed to continue attempts at collection.
It is possible that the court will require the assets of the debtor’s to be liquidated in order to pay part or all of the debts. So, whatever property that is deemed valuable enough to sell may be used for payment purposes. However, there are several types of property that is exempt from the liquidation process which may include furniture, clothes and even the vehicle of the individual or couple.
Another aspect of the bankruptcy proceedings is what to do with secured debts. An example is that a debtor who is paying a car loan may keep the vehicle if they continue to make the payments as long as the lender agrees. If the lender does not agree, then they may repossess the vehicle or the debtor must pay what is owed on the loan equal in current value to the car plus what has already been paid.
The car loan is an example of a secured debt. Other property that has a lien on it because of a loan may also be considered secured debt by the court. They may be handled in a similar fashion or discharged as the court sees fit.
Instead of having the debt discharged, it may be that the court will put the debtor on a repayment plan instead. This usually depends on how much is owed and if the money earned by the debtor is enough to repay the debts over a pre-set period of time. If that is possible, then it is conceivable that a debtor will have the debts spread out into a repayment plan over a set period of time.
Under this plan, the individual or company may keep the property that may otherwise had to be turned over, such as their home if the bank was considering foreclosing proceedings.
If you live in the Houston area, then you may want to consult with a Houston bankruptcy lawyer in order to go over all of your options. A qualified West Houston bankruptcy law firm may be the ideal way to fully understand your particular situation and take the right course of action.