The most common question asked when getting started with a bankruptcy filing is, what does bankruptcy mean exactly? There is quite a bit of misinformation out there, but essentially bankruptcy is a legal way for you to declare that you are unable to pay back all the money and debts that you owe. Sometimes, there is also the added option to repay some of your creditors in a more orderly manner. Bankruptcy offers consumers a clean financial start, but you should also know that filing for bankruptcy will a matter of public record.
Well, what about some of the advantages of bankruptcy? Bankruptcy will allow you an opportunity to get caught up on some of the payments you have missed, and stop a foreclosure on your home. It can also prevent your car or other property from being repossessed while you are trying to make payments. It will put a halt to those harassing debt collector phone calls and will end wage garnishment. Once your bankruptcy petition is filed, an automatic stay will be issues by the court. This prevents your debtors from taking any more action to try and collect your debts.
Bankruptcy is designed for those people that are overwhelmed by their financial burdens. People who feel they have no way out. If you are worried about your credit, know that you will not be in complete credit ruin, but a bankruptcy will stay on your credit report for up to 10 years. If you still have a consistent income, you will find that some places will still extend credit to you even with a bankruptcy on your record. If you have other questions, consult your bankruptcy attorney dallas.
There are limits to what bankruptcy can do for you, however. Know that it will not take care of all of your financial burdens. Secured debts, like a mortgage or title loan, will not be eliminated with bankruptcy. Bankruptcy will also not remove your obligations like child support, student loans, alimony, taxes, and criminal fines. So make sure bankruptcy is going to work for you before you take the time to file.
How often you can file for bankruptcy depends on the type of bankruptcy you file. Chapter 13 bankruptcy can be filed again any time you need to, but chapter 7 only allows you to file for bankruptcy after 8 years have passed. Make sure to go over all your choices when trying to determine which bankruptcy option is right for you.