An Important Question With Bankruptcy Filing Answered

If I file for bankruptcy, will I lose everything

? Most individuals ask this question to their bankruptcy lawyer. Actually debt collectors spend a lot of time threatening the debtors with scare tactics that they will lose everything If they file for bankruptcy to wipe out their debt. Very often this works because people want to avoid filing bankruptcy because they think; they will never be able to gain anything and will get any credit again.

The fact is, creditors know if a bankruptcy is filed, an automatic stay will come into force and they will never be able to contact the debtors again. And if they do, that will be considered a violation of stay and that could bring sanctions against them from bankruptcy court. For the ones that continue to be persistent, the debtor can claim for damages and bankruptcy fees for their bankruptcy lawyer as a result of flagrant violations.

Filing chapter 7 Bankruptcy was framed to eliminate large amount of unsecured debts and gives the debtor a fresh start. The government has given some bankruptcy exemptions to the bankruptcy code allowing individuals to keep some personal property. Though filing bankruptcy is a federal court procedure but these are governed by state laws that work along with federal laws. Bankruptcy exemptions can vary from state to state. When a person is filing for bankruptcy laws, he can either use federal exemptions or can move with the state exemptions from where he has been filing. Most individuals use state exemptions as they are tailored to suit local residents.

In todays economy, hardly anyone who files for Chapter 7 Bankruptcy looses property. The bankruptcy trustee looks out for easily liquidated asset. A trustee will always weigh the cost of collecting and selling an item versus its reward. Since the value of the property has decreased significantly, it becomes quite hard to liquidate it. If a bike worth $1500 in blue books and only $1000 are protected by exemption laws, the trustee wouldnt be interested in liquidating it because even if they seize the property and sell it for $1200, it wouldnt be worth time and cost assigned to liquidate it.

Once again the debtor will feel the need of a bankruptcy lawyer in Dallas. An experienced lawyer is well versed with the laws and he knows very well what laws will use and can capitulate what is expected from bankruptcy trustee to seize and liquidate for bankruptcy discharge. An attorney has received that knowledge from his experience and years of practice and none other is going to match the knowledge of a qualified lawyer. Before you believe anyone for some advice on critical matters, it is essential that you consider the source and speak to an experienced lawyer to learn how secure you are with bankruptcy filing.

Looking for an experienced and qualified Bankruptcy Attorney in Dallas you can simply log on to: http://bankruptcy.legalhelp.org

by: Harvard McIntosh

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