According to the United States federal court system, over 775,000 bankruptcy cases were filed in 2018. In the Texas district alone, including Fort Worth and Arlington, over 4,000 cases were filed last year! And although the national figure has crept down in recent years, it still represents a significant number of Americans seeking debt relief and financial stability.

It’s no surprise that people seek the services of a bankruptcy law firm in order to wade through the complicated legal process. For simplicity, we focus here on individuals filing Chapter 7 and Chapter 13, and how to search for a bankruptcy attorney in Arlington TX or Fort Worth.

Bankruptcy is a legal proceeding filed in federal court which allows individuals or businesses (debtors) freedom from debts while allowing creditors an opportunity to arrange for collection schedules.Rules are outlined in the United States Courts system, so a wise strategy is to seek representation to ensure compliance with state and local law.

Declaring bankruptcy is a process that is often emotionally charged. While it can relieve you of legal obligations to pay debts and keep your home or business, it also has long term consequences, such as negative effects on your credit rating, inability to qualify for future funding, or purchasing a home or business. A bankruptcy attorney can articulate individuals’ circumstances, and how the process may provide a “second chance.”

“Chapters” refer to the codes of US Courts law, defining the type of bankruptcy. For example, Chapter 7 or Chapter 13 usually refers to individuals, or consumers, an area where bankruptcy lawyers sometimes specialize. Businesses similarly can file for Chapter 7 or Chapter 13 (reorganization); all bankruptcy attorneys are qualified to provide for both individuals and businesses.

Chapter 7 involves individuals or businesses with few or no assets. It allows individuals to dispose of the unsecured debts, such as credit card or medical bills. Assets such as heirlooms and other unsecured possessions must be liquidated in order to satisfy debt.

Chapter 13 is also known as a wage earner’s plan, and allows individuals and businesses with consistent income to create workable debt repayment, usually within 3-5 years. In exchange for repaying their debt, the courts allow debtors to keep all of their qualified property.

Three separate costs are included in every case: credit counseling fees, a court filing fee, and bankruptcy attorney fees. It is common for bankruptcy law firms in Texas to charge a flat fee, depending on the type filed, and whether a spouse is also involved.

Finding a low cost bankruptcy attorney may be easier than one assumes, and the money that is invested into the process can save time and financial stress.Legal assistance may be available to those within certain income parameters. In addition to searches with the local bar association, internet queries for local bankruptcy lawyers can be made by simply typing key words such as: bankruptcy attorney Arlington TX or bankruptcy fort worth. Proper punctuation or capitalization is not necessary. Algorithms will guide you, and your search will be well worth the assurance that your bankruptcy filing is in compliance with the law.