Arlington, one of the largest cities in Texas and in the top 50 for the country, has been hit hard by recent economic problems much like the rest of Texas. The bad news is there were still a higher number of bankruptcies in the first quarter of 2010, yet across the country the economic situation appears to be changing. In any case, filing bankruptcy should not be considered in the negative, because it can quite often let you live the normal life of paying bills and staying current on your mortgage in the future.
This guide shows you where to file, how to file, and when to file bankruptcy in Arlington Texas.
Where to File
If you live in Arlington, or in the Dallas and Fort Worth area, you’ll be filing at the Northern District of Texas Bankruptcy Court. This governs the entire area. Your Chapter 7 bankruptcy can quite often be accepted and your debts discharged in a matter of months. While Chapter 13 bankruptcy is a longer process, you can still receive immense benefits.
How to File Bankruptcy in Arlington
You need a lawyer and a plan, then you need to follow the guidelines for filing in court. An experienced Texas bankruptcy lawyer can be invaluable. The courts require you to take a credit counseling class, which is short, and then require you to prove eligibility. Not all Texans are eligible for Chapter 7 bankruptcy, the most common form. If you have hundreds of thousands in unsecured and secured debts, you may not be eligible for Chapter 13 bankruptcy either. This is where a lawyer can help.
A Texas bankruptcy lawyer will walk you through this process for a very nominal fee. An experienced lawyer will cost you some money, but when you compare it to the benefits of filing bankruptcy – discharging thousands in debt with Chapter 7; saving your home and other assets from being taken in Chapter 13 – the advantages of hiring one are clear.
The credit counseling class is just a federal requirement, and only takes about an hour. You will also need to take a debtor education course in order to get a discharge.
What documentation do you need to file? This is all your financial records: recent bank statements, recent bills from each creditor, payment proof for your car, real estate, and student loans, receipts, and any bills for purchases from the last year. There is more, but your Texas lawyer can walk you through these steps.
When Do You File?
When should you file bankruptcy? This all depends on your current situation. Sometimes filing bankruptcy in Arlington is not your best option. You always have other options, it just depends on where you are at financially, what you can and can’t afford, and how far into collections you’ve gone. For example, if you have missed several mortgage payments and fear losing your Arlington home to foreclosure, you need to take action by filing Chapter 13 bankruptcy, so you can keep it. If you just got a high medical bill, you have no insurance, and you have no job or a low paying job, Chapter 7 bankruptcy is quite often your best option.
Each case is unique. Hire an experienced Arlington bankruptcy lawyer to find out more.
