What Is Waco Texas Bankruptcy?

If you find yourself struggling to pay the bills every month and never seeming to get ahead despite your best efforts, you may wish to consider filing for Waco Texas bankruptcy protection.  When some people hear the word “bankruptcy”, they have a negative reaction. There are a variety of reasons for this; however, most of them are the result of a lack of understanding about the bankruptcy process. Once you understand the bankruptcy process better, you will likely be more willing to consider it as an option.

The right to file bankruptcy is found in the US Bankruptcy Code. This means that bankruptcy is federal law in the United States. If you live in Bell, Bosque, Coryell, Falls, Freestone, Hamilton, Hill, Leon, Limestone, McLennan, Milam, Robertson, Somervell, Lampasas, or Williamson County, we can file your bankruptcy case with the federal bankruptcy court in Waco, Texas. Since Bankruptcy Law is federal law, bankruptcy law applies in all 50 states and territories. This also means that, with one exception, bankruptcy laws are the same for all U.S. citizens,  regardless of the state in which you file your bankruptcy case. The aforementioned exception refers to the exemptions to which you are entitled when you file for bankruptcy. As the name implies, an exemption is an asset that cannot be seized and sold to satisfy creditor claims when you file bankruptcy. The Bankruptcy Code includes a list of federal exemptions; however, the individual states are allowed to create their own set of exemptions as well. Each state may then decide whether a debtor is required to use the state exemptions or may choose between the federal exemptions and the state exemptions. In Texas, we can advise our clients to use either federal or state exemptions, depending on which laws protect the clients’ assets the best.

In Waco Texas, I actually usually use the federal exemptions more than the state exemptions because the federal exemptions have very generous exemptions and a “wildcard” exemption that allows us to exempt cash and other assets that might not be exempt under Texas Law. However, in Waco, Texas if my client has a lot of equity in his/her home, I will probably advise that they use the Texas exemptions which enable Texas debtors to retain 10 acres in the city or 100-200 acres in the country as their homestead. In fact, while each case is unique, most debtors who file with my firm, are able to retain all of their property, including their home, contents of the home, vehicles, livestock, and retirement funds. What this means for a debtor is that bankruptcy can eliminate the debts that are causing the financial hardship without the debtor losing any of the assets that the debtor has worked so hard for all of his or her life.

Moreover, bankruptcy does not mean you will never qualify for credit again. In many cases, my clients’ credit scores begin to go up immediately after my clients receive their discharge – which is about three to four months after the Chapter 7 case is filed. Many clients purchase replacement vehicles while their Chapter 7 cases are pending and shed the old vehicle and debt that they had when the case was filed. Clients are able to purchase and finance homes just two years after their Chapter 7 discharge. Most clients state that their credit scores actually increase after they file a bankruptcy case with my office. We work hard to insure that any negative remarks on clients’ credit reports are included in the bankruptcy filings and then we request the credit bureaus to give my clients corrected credit reports after their discharge showing that all of their debt has been discharged. This greatly helps on their road to a financial fresh start!

If you are drowning in debt you owe it to yourself and your family to consult with Waco Texas bankruptcy attorney Erin Shank to find out what bankruptcy can do for you.

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