Though bankruptcy is one of the best ways to get rid of debts, it is not always in the best interest of everyone. Before filing for bankruptcy, lawyers of Dallas based bankruptcy law firm Recovery Law Group suggests that all factors must be taken into account.
Try getting out of the financial mess without a bankruptcy filing. This can be done through a repayment plan based on your disposable income. Though a relatively slower method, it can work if you cut down on unnecessary expenses or take up an additional job. However, you need to deal with constant harassment from creditors as well as bad credit over a long period. Opt for this method only if you can deal with the mental and physical stress.
If you cannot deal with the long-term stress associated with the above method of debt repayment, you can file for bankruptcy. However, you need to be aware of what chapter of bankruptcy you will qualify for, what assets you can protect, and which debts will be discharged when you file for bankruptcy. a seasoned lawyer can help you with this. You can call 888-297-6023 to speak with experienced bankruptcy lawyers about your predicament.
Individual debtors can opt for either chapter 7 or liquidation bankruptcy where the non-exempt property is liquidated to pay your creditors or chapter 13 or reorganization of debt where you can keep your assets but will pay your debtors some portion of the debt through a 3-5-year repayment plan. However, the chapter you will be able to qualify depends on your household income for the past 6 months.
While filing for bankruptcy you should be aware which debts won’t be discharged. If excessive student loan debt or child support and alimony are the reasons behind filing for bankruptcy, you won’t get anything out of it. These debts constitute unsecured priority debts that are not discharged in bankruptcy. in fact, even after getting your bankruptcy discharge you will be expected to pay these debts. An attorney can help you with these debts as well as secured ones like a mortgage. They can also help you find out ways to legally protect your assets from becoming part of your bankruptcy estate.
When you file for bankruptcy, it becomes public record. Getting a mortgage, car loan and credit card become difficult for the coming few years. Depending on the chapter of bankruptcy you have filed, bankruptcy can stay on your credit report for 7-10 years. However, it is important to note that bankruptcy will wipe out all bad credit and only leave good credit on your credit report. thus, you need to make a conscious choice when it comes to filing for bankruptcy, weighing in all options available.