Despite bankruptcy being one of the best ways to get a fresh financial start, the numerous social stigmas attached to it make it difficult for people to go ahead with it. Since bankruptcy becomes public record and stays on your credit report for a duration of 7-10 years, your financial failures can hold you back many times in the future. However, that is no reason to let go of a chance to get rid of your numerous debts and make a fresh financial start. According to Dallas based bankruptcy law firm Recovery Law Group, most people have major concerns regarding the bankruptcy process. Some of the common queries are:
- What happens to my assets?
People opt for bankruptcy in order to save their assets from going under the hammer. Bankruptcy provides exclusions in the form of state and federal exemptions which protect most of your personal property including equity in home and vehicle, as well as personal belongings, household items, etc. Your non-exempt property can be sold off to repay your creditors in case of Chapter 7 bankruptcy.
- Can I get rid of all my debts?
Secured debts, against which the creditor has a lien, cannot be discharged during bankruptcy. These include a car loan and a house mortgage. Priority debts such as certain government taxes, alimony and child support as well as student loan debts are also not discharged during bankruptcy. Your non-exempt property is used to repay your unsecured creditors and any debt which remains after that is discharged. The debts so discharged are removed from your credit report but your bankruptcy will remain on it for a duration of 10 years (Chapter 7 bankruptcy).
- Is there a limitation to filing for bankruptcy?
There is a time limit when it comes to applying for bankruptcy, to prevent misuse of the advantage the system provides. People who have previously filed for Chapter 7 can file for Chapter 13 bankruptcy after duration of 4 years from the initial filing; this period is 8 years if you wish to file for Chapter 7 bankruptcy again. In case you had previously filed for Chapter 13, you can file for Chapter 7 bankruptcy after six years from filing date while the timeframe is 2 years after case filing for another Chapter 13 bankruptcy Dallas!
If you have decided to opt for bankruptcy in order to get rid of your debts, it is important that you hire the best legal advisor. You can schedule an appointment with experienced bankruptcy lawyers by calling at 888-297-6023.