Factors To Help Decide Whether Bankruptcy Is Right for You
You’re struggling to make ends meet, either as the result of a divorce, an injury or illness, or the loss of a job. You know that U.S. bankruptcy law is there to help you get a fresh start, but you’ve never sought protection through bankruptcy before. What questions should you ask to determine if bankruptcy will be a positive step for you?
Question #1—Have You Considered All the Alternatives?
The bankruptcy process can be time-consuming and can have some negative repercussions, so you want to know that you’ve explored your other options:
- Have you tried to work with a debt counseling agency? The right agency may help you create a workable budget and repayment plan.
- Have you tried to work directly with creditors to make arrangements?
- Are there potential employment options to supplement your income?
- Is there anything you can do to reduce your monthly expenses?
Question #2—Will a Bankruptcy Filing Address Your Problematic Debt?
Some debts cannot be discharged in bankruptcy, such as child support payments, student loans, and some tax obligations. If those are your primary debts, a bankruptcy filing may not bring any meaningful benefit.
Question #3—What Will You Have To Give Up in a Bankruptcy Filing?
In Texas, with its generous exemptions, most people who file for personal bankruptcy protection are able to keep all their assets. In some situations, though, you may have to relinquish property in exchange for the right to permanently discharge debt.
Question #4—What Is the Long-Term Impact of a Bankruptcy Filing?
Most of the adverse consequences of a bankruptcy filing are short-lived, provided you comply with the terms of your bankruptcy filing. Your credit rating will likely take an immediate, but temporary, hit. Typically, you can rebuild it fairly quickly by honoring your financial commitments.
Contact an Experienced Rockwall, TX Chapter 7 Bankruptcy Lawyer
At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment to discuss your rights and options in bankruptcy, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Kaufman County, Rockwall County, Collin County, Dallas County, Hunt County, and the surrounding counties.
