Bankruptcy Lawyer Dallas, TX
If you’re thinking about filing for bankruptcy to rid yourself of debt you can no longer hope to pay down anytime soon, it’s important to speak with an experienced bankruptcy lawyer Dallas, TX residents trust, and to do so as soon as you can. One of the primary reasons why it’s important to connect with the experienced Texas legal team at The Allmand Law Firm, PLLC before you make any assumptions about your case is that not all debt is treated equally under the law. The bankruptcy process treats various kinds of debts differently. If you have certain kinds of debt, filing for bankruptcy may be a great option for you. However, if you’re burdened with other forms of debt, you may need to explore alternative debt management options to achieve your financial goals. Once our experienced Dallas, TX bankruptcy lawyer team examines your finances, we’ll be able to advise you of your options accordingly.
Debt Types in Bankruptcy – The Basics
When thinking about filing for bankruptcy, there are four primary kinds of debt you’ll want to keep in mind:
- Secured debt – Secured debt grants your creditor a specific interest in the property you purchased which resulted in your debt. If you default on secured debt, the creditor can repossess your property. Mortgages, car loans, furniture and appliance loans are examples of secured debt.
- Unsecured debt – Unlike secured debt, unsecured debt isn’t tied to any kind of collateral. As a result, creditors can’t generally repossess any of your property in the event of a default. Credit card accounts, student loans, tax debt, medical debt, and family support obligations (child support, alimony, etc.) are examples of unsecured debt.
- Dischargeable debt – If the court can eliminate a filer’s debt as a result of the bankruptcy process, that debt is said to be dischargeable. As secured creditors can repossess their collateral, secured debt is generally not dischargeable. However, many kinds of unsecured debt are dischargeable.
- Non-dischargeable debt – If a court cannot, by law, eliminate a debt during the bankruptcy process, it is said to be non-dischargeable. In addition to secured debt, family support obligations, some tax debts, and most student loans are generally classified as non-dischargeable debt.
Legal Assistance Is Available
It’s okay to be unsure of whether bankruptcy is the best option for your financial situation. It’s also okay to not have a “full picture” of what your debt load entails. We can help you to clarify these issues so that you can make an informed decision about how you want to move forward. If possible, consider pulling a free copy of your credit report and bringing it along to your initial consultation. By evaluating your credit report, we’ll be able to get a strong sense of how much of your debt is dischargeable and how much is non-dischargeable. We’ll also be able to largely determine how much of your debt load is secured vs. unsecured. Please connect with our Dallas, TX bankruptcy lawyer team today; we look forward to assisting you. Call The Allmand Law Firm, PLLC today.