Questions to Ask a Bankruptcy Lawyer in Denton, TX

The decision to seek bankruptcy protection is not one to make lightly. Before assuming it is the only possible solution, it pays to schedule an appointment with a bankruptcy lawyer in Denton, TX to clear your doubts. Here are some of the matters that should be discussed during that meeting.

What Does It Take to Qualify for Bankruptcy Protection?

As the bankruptcy lawyer in Denton, TX will explain, bankruptcy is not a legal action that is open to everyone. The courts require that anyone seeking this type of relief meet specific criteria. A good example is the application of what’s known as a means test. Basically, the results of this test determine if the client does have a reasonable ability to pay the outstanding debt without the intervention of the court. The test is something that the lawyer can administer during the meeting, assuming that the client has brought along all the essential financial data.

Can All Debt Be Discharged?

Some forms of debt cannot be discharged by the court except under specific circumstances. For example, back taxes and student loans can rarely be discharged. The lawyer can look at the type of debt owed and help the client understand what a chapter 7 action would and would not accomplish.

When there is debt that cannot be discharged, that does not automatically mean bankruptcy is off the table. Instead of filing chapter 7, the debtor could still get protection under a chapter 13 bankruptcy. This would make it possible to settle what is known as priority debts over a period of three to five years. Other debts would be settled based on a percentage of each dollar owed. Any non-priority debts that remain at the end of the give years will be discharged.

What Happens to the Credit Rating?

If things are bad enough to consult with a lawyer, the credit rating is already damaged. Filing will lower the rating in the short term, but the client is likely to see those credit scores increase as the months pass.

Now is the right time to find out if bankruptcy is the best approach. Visit and set a date and time for a free consultation. Whatever the situation, the debtor will definitely feel better thinking about the future once the meeting is over.

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