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Bankruptcies inevitably increase in a bad economy. What is bankruptcy? Bankruptcy is a federal court process to protect an individual or business, allowing the elimination and/or repayment of debts. Most bankruptcies are filed under Chapter 7 or Chapter 13 of the Federal Bankruptcy Code. Chapter 7 aids in the liquidation of debt, while Chapter 13 reorganizes debt and repays all or some, while an individual keeps their homes. Many consumers do not have the savings to see them through tough times, and they need legal advice to guide them through the bankruptcy course of action.

In years past, it was typically average income individuals filing for bankruptcy, but with the continued uncertainty of the economy, higher income families are filing. In fact, because of foreclosures and job losses, personal bankruptcy rose by over 10% across Texas, and about 30% nationally in 2009. Collectors are becoming more aggressive in the bleak economy, so debtors need to be protected by bankruptcy status in order to avoid foreclosures on their homes.

Bankruptcy lawyers in Texas, and in all states, have seen an increase in filings. It was thought that the peak of the recession hit last year, but the signs of an economic recovery are still weak. Consumer confidence has not rebounded, and there is a high unemployment rate. Individuals have high debt and low savings, so with job losses and cutbacks in hours, they can run into trouble very quickly. Falling real estate prices and the high inventory of homes also is a factor. More and more individuals are seeking bankruptcy lawyers in Texas for assistance with the process.

Is it necessary to seek the guidance of a bankruptcy lawyer in Texas? Professional and competent advice is needed to file for bankruptcy, and the stress of filing will be alleviated with their help. It is a complicated, technical process. Laws also change frequently, so a bankruptcy lawyer in Texas is up to date with current laws and modifications. They assist in documentation and paperwork, assuring accurate and timely filing. In addition to the paperwork, they help individuals manage creditors, and give guidance on how to reestablish credit. Fairness of fees is assured by bankruptcy court, so the individual filing knows that they are paying an appropriate fee. As the number of bankruptcies continue to increase with the financial trend, the need for the counsel of bankruptcy lawyers increases.