You can’t save any money when it comes to bankruptcy, right? Actually, there are ways to save on expenses involved. While this blog guide is not about actually putting money into your savings, it can help you save some reasonable amounts of money so you can use them for needed essentials. Money is the prime problem many have when filing for bankruptcy, so of course saving money when filing, on paying debts, and on hiring an attorney is paramount. Here is some help.
Advantages of Texas Chapter 13
For Texas Chapter 13 bankruptcy, you may wonder how filing can help you. Clearly, Chapter 7 has quite an impact on your debts. If you can discharge $100,000 in debt for a fraction of it, that’s an easy decision.
Chapter 13 is different. Texas home owners and those with a lot of assets quite often are in danger of losing them when filing Chapter 7. Why is because your trustee is designated with selling assets to pay for debts owed. In most bankruptcies, you lose nothing, but the more you have the more you might lose.
Chapter 13 bankruptcy can stall if not stop a foreclosure, protect other properties from being taken, help you keep your car, and give you a fresh start for often a smaller amount than owed. With the help of a Texas lawyer, you can reap the rewards of a successful bankruptcy.
During the Bankruptcy – The Long Chapter 13 Plan
Chapter 13 does take some time, typically 3-5 years. That means saving money during bankruptcy is crucial. You can’t save money on the filing fees, $274 to file, but you can save money in terms of your assets. Consider how much time and money you put into your home and/or other properties; consider how much your car is worth; and if you have other valuable assets in danger of being taken, you likely want them too. You can potentially save thousands by stopping a foreclosure, keeping your car, and protect other valuables you still owe money on.
Chapter 13 is advantageous because in Chapter 7 you liquidate. You rarely lose anything in Chapter 13.
Attorney Costs
Yes, you can save money in your Chapter 13 bankruptcy by hiring a reasonably priced lawyer. In rare cases do you need to spend many thousands of dollars. Typically, a professional, experienced attorney charges $1,000 to $2,000 to help you. Consider how much you’ll save by filing Chapter 13; if you have a $200,000 home, a Texas bankruptcy attorney can ensure you keep it.
After Bankruptcy
After your Chapter 13 repayment plan is done, you are free of most all your debts. You are discharged much like a Chapter 7. The only difference is you paid some or all of the debts off. Now it’s time to start budgeting and cutting down on expenses so you can really start fresh. The biggest problem many have is in failing to save enough money to avoid having to file bankruptcy again.
