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A bucket list is an itemized list of things you desire to do before you pass away. You may have heard of one.

Conversely, what if there were a reverse bucket list—that is, a list of things you hope to avoid doing or having happen to you during your life? Though preparing such a list is certainly less fun, what would you include on your “reverse” bucket list?

Getting a divorce, avoiding a major sickness or disease, and maybe avoiding being arrested or dying too young are among the things that most individuals would probably list.

Probably quite high on that list, I would also guess, would be bankruptcy filing. It would indicate, first of all, that you are facing a major financial issue, and, for many, it is emblematic of personal financial failure.

Though most people do not see bankruptcy favorably, there are a few surprising benefits that can make you reevaluate your opinion.

Should you be thinking about filing for bankruptcy, you should speak with a qualified bankruptcy lawyer who can advise you on whether or not it is the best course of action. Call our Grand Prairie bankruptcy lawyer to find out more right now!

Grand Prairie Bankruptcy Lawyer

Types Of Bankruptcy

If you are deeply in debt and don’t see an end in sight, perhaps bankruptcy is for you. Filing bankruptcy is often the best way to get back on your feet and take control of your debt. You can often wipe out most of your debt and get a fresh start.

The first step to filing bankruptcy is determining which type of bankruptcy you are eligible for and which best suits your needs. There are four main types of bankruptcy: Chapter 7, Chapter 11, Chapter 12, and Chapter 13.

The latter three have eligibility requirements, while the first does not. Only Chapter 11 is available for businesses; Chapter 12 is for farmers or fishermen; so, assuming you don’t fall into either of those categories, you’ll be filing for either Chapter 7 or Chapter 13 bankruptcy. Chapter 7 or Chapter 13 – we will discuss these below.

Chapter 7 Bankruptcy

If you’re in serious debt and don’t see any relief on the horizon, Chapter 7, or “liquidation” bankruptcy, is the type of bankruptcy that sells non-exempt assets that are owed to creditors. This is the best bankruptcy if you have a lot of debt and little income or assets.

If you want to file for Chapter 7 bankruptcy, first you must pass the means test, which determines if you can pay your debts. If you don’t make enough money to pay your bills, you may qualify for Chapter 7 bankruptcy. If you can’t pay your debts, the courts will let you eliminate them, and your creditors will be paid from the sale of and liquidation of your non-exempt assets. Not all of your assets will be liquidated. You can keep up to a certain amount of home, car, and household goods. The bankruptcy trustee and the exemptions in your state will determine how much you can keep.

This eliminates all of your unsecured debt, which includes credit cards, personal loans, medical expenses, and utilities. Chapter 7 bankruptcy is short and simple, and it may take you only months to eliminate your debt if you qualify. If you have unmanageable debt and no way to pay it back, this may be the best choice for you.

Chapter 7 bankruptcy makes it difficult to get a loan or credit in the future, but your credit score is likely currently low or damaged due to debt and can’t really be raised in your present financial situation anyway. In the long-term, this can help you start with a clean slate.

If you need help protecting your assets from liquidation or want to learn more about filing for Chapter 7 bankruptcy, call our Grand Prairie bankruptcy lawyer today.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy (which is sometimes known as a reorganization or wage earner’s bankruptcy) allows for a person with a regular income to create a three- to five-year plan to pay his or her debts, giving him or her time to catch up on late payments. Chapter 13 requires a steady paycheck and a limited amount of debt. You must be able to maintain your Chapter 13 monthly payment, but you usually do not have to sell your assets to pay your creditors.

Most importantly, your Chapter 13 plan must be confirmed by your creditors. That is, your creditors have some power over what happens. For that reason, your plan must show that you are trying to pay your creditors something, not completely getting out of your debts. And, they have the right to object. Your creditors may not like your plan and therefore refuse to accept it. At that point, you may need to change your plan or you can file Chapter 7 and have your case dismissed. It isn’t in their best interest to reject your plan, however, as this would mean you have to file Chapter 7 and your creditors are likely to get nothing at all.

Chapter 13 bankruptcy is more complex than Chapter 7 bankruptcy; you’ll need to plan your finances carefully. You might stay in Chapter 13 bankruptcy for five years, and you’ll have to pay your trustee on a regular basis. You’ll get to keep your property, assets and home. Because Chapter 13 bankruptcy only buys you a little time to pay off your obligations, it’s best for people who have a steady income. Although Chapter 13 won’t wipe out your debts, it might provide much-needed relief and give you peace of mind that your creditors can’t garnish your wages, or take your home or car away from you.

Explore Your Bankruptcy Options With Ted Machi & Associates, P.C. 

Bankruptcy is an important decision that will have a big impact on your life. Like any other life decision, it should not be made lightly, and it should also not be made without guidance. If you are considering bankruptcy, it is important that you speak with our Grand Prairie bankruptcy lawyer about all of your options and what each could mean for you.

We have successfully helped hundreds of clients with their bankruptcy needs, and we can help you too! At Ted Machi & Associates, P.C., we are here to provide you with the most comprehensive bankruptcy assistance available. We will walk you through the process from start to finish and help you make the right decision for you and your family. We understand the financial stress that can come with bankruptcy, and we are dedicated to assisting you.

Your initial consultation is free, so call today to learn more about the steps we can take to help you get some much needed relief and get your finances back on track again.

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Grand Prairie, TX Practice Areas

The team at Ted Machi & Associates help me through a difficult situation and was very responsive to insure a successful outcome. My attorney was very thorough in explaining and helping me make the right decision. If you need expert advice and a company with years of experience, I would consult with the team at Ted Machi and Associates. My outcome was favorable.

Debra S.

Dan Wright, embodied the persona of what an attorney should be. He restored our faith in the legal system with his professionalism and knowledge. We wouldn’t hesitate to recommend Machi & Associates to anyone needing assistance.

Roderick J.

*Ted Machi is a Certified Member of Who’s Who Top Attorneys of North America for 2023
Ted Machi & Associates, P.C.

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