Benefits Of Filing Bankruptcy In Kilgore Tx

byAlma Abell

Excessive debt causes problems for many people today. Having too much debt can leave a family struggling to keep food on the table and having the means to get to and from work every day. Creditors expect those who borrow money to repay it according to the terms of the agreement and the vast majority of the people who use credit cards and take out loans have every intention of paying the money back. Unfortunately, unforeseen circumstances can lead to a person to be unable to meet those obligations. When that happens, Filing Bankruptcy in Kilgore TX is one alternative to struggling to make payments and getting deeper in debt.

By Filing Bankruptcy in Kilgore TX, a family can eliminate many types of debts or force the creditor to take smaller payments over an extended period of time. Depending on the type of bankruptcy filed and the kinds of debts they have, a consumer may be able to eliminate many of their bills completely without paying anything back to the creditor. In order to qualify for debt liquidation, a person with insurmountable debt must meet the income qualifications. This type of bankruptcy will not help someone who is behind on their mortgage payments and wants to protect their home from foreclosure.

Those who don’t meet these qualifications can still benefit from Filing Bankruptcy in Kilgore TX. Chapter 13 bankruptcy gives people with a lot of debt who have a stable income the opportunity to reduce their monthly payments. With more affordable payments, these people can reduce their debts while still having enough money to pay for food and other necessary expenses. While actively making payments to the bankruptcy trustee, people in Chapter 13 bankruptcy are free from creditor harassment. Creditors must contact the trustee and not the customer.

Some debts cannot be discharged in bankruptcy. However, those with outstanding child support, alimony or payroll taxes might find those debts easier to pay by Filing Bankruptcy in Kilgore TX. Using the bankruptcy to eliminate most debts can free up money in a budget that could enable the person who is struggling to settle these obligations get a handle on them and eventually pay them off.