The Steps to Filing for Bankruptcy in Bedford, TX 

Filing for bankruptcy is a big decision, but it can provide the financial relief you need to get back on your feet. While the process may initially seem overwhelming, the right information and support can make it much more manageable. In this article, we have summarized simple, easy-to-follow steps for filing bankruptcy in Bedford, TX, and how a bankruptcy attorney can help you through the process. 

Step 1: Evaluate Your Financial Situation  

Before filing for bankruptcy, you have to take a good look at your finances. Check how much is coming in, how much is going out, and how much you owe. This will help you figure out if bankruptcy is the right option for you. It can wipe out some debts, but things like certain taxes and child support will not just go away. That is why it is important to know where you stand financially. 

Step 2: Consult with a Bankruptcy Attorney  

Bankruptcy laws can be complex, but you do not have to navigate them alone. Having the right legal support makes you feel more confident and better prepared for a smooth process and successful outcome. An experienced bankruptcy attorney, like those at Sherman Law Firm, P.C., can help you avoid common mistakes, explain your options, and make sure your filing is accurate.  

Step 3: Understand the Bankruptcy Options  

When filing for personal bankruptcy in Texas, you will have to choose between Chapter 7 and Chapter 13 of the Bankruptcy Fact Sheet. Understanding which option best fits your situation is a key part of the process: 

• Chapter 7 involves the liquidation of non-exempt assets to pay off creditors. After that, most remaining eligible debts are wiped clean. It is a good option for those with limited income and few assets. 

• Chapter 13 lets you set up a repayment plan to manage debts over three to five years. This works well for individuals with a steady income who want to keep certain assets.  

Step 4: Obtain a Credit Counseling Session 

You must complete a credit counseling session with an approved provider before you can proceed with filing for bankruptcy in Bedford, TX. This federal requirement helps determine whether bankruptcy is the right choice for your situation, where a certified counselor will assess your finances and financial goals for the short term and long term. After the session, you will receive a certificate to include with your filing. 

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Step 5: Gather Required Documentation  

To move forward with your bankruptcy case, you will need to gather essential financial documents. These include things like:  

• Recent income statements and pay stubs; 

• Tax returns from the last two years; 

• A list of all debts, including credit cards, loans, and medical bills; 

• Information on any assets, like properties, vehicles, or bank accounts; and 

• A breakdown of your monthly expenses. 

These documents give the court a clear picture of your financial situation, which is crucial to the process. 

Step 6: File Your Bankruptcy Petition  

Once your documents are ready, the next step is filing your bankruptcy petition with the court. This triggers an automatic stay, which stops most collection efforts, including creditor calls, wage garnishments, and foreclosures. Make sure that all details in your submitted documents and petition are accurate, as any errors or missing information could delay the process. 

Step 7: Cooperate with Bankruptcy Trustee  

After filing, a bankruptcy trustee will be assigned to review your case. You will attend a “341 Meeting of Creditors,” where the trustee and any attending creditors can ask questions about your financial situation. You do not have to worry because your bankruptcy lawyer will guide you in every step and will make sure that you are prepared before attending such a meeting.  

Step 8: Attend a Financial Management Course  

Before your debts can be discharged, you must complete a debtor education course regardless of whether you receive a discharge in Chapter 7 or Chapter 13 bankruptcy. This course helps you build better financial habits to avoid future financial struggles. Once finished, you will submit a certificate of completion to the court and proceed with the next step. 

Step 9: Receive Your Debt Discharge (If Applicable)  

If you have met all the requirements, the court will finalize your case. For Chapter 7 filers, eligible debts will be discharged, giving you a fresh start, while Chapter 13 filers must complete their repayment plan before receiving a discharge. Either way, this is the final step toward financial relief, and debtors will no longer be liable for debts. Lenders will no longer be allowed to attempt to collect any debt previously owed. 

Why Choose Sherman Law Firm, P.C.? 

Since 2001, Sherman Law Firm, P.C. has helped thousands of individuals and families in Bedford, TX, and the greater North Texas area with bankruptcy and family law. We are committed to providing personalized, trustworthy guidance to help you achieve the best possible outcome. If you are considering filing for bankruptcy in Bedford, contact us today for a free consultation. Let us help you take the first step toward financial freedom with a team you can trust and rely on.