For debtors so far behind in their debt and have no hope of paying it all off, bankruptcy may be the answer you are looking for. Bankruptcy really can give you a fresh start on your financial future. All of your qualifying debt will be legally wiped away, and you will no longer be obligated to pay it.
Almost all of your unsecured debt will be discharged in bankruptcy. Unsecured debt is usually obtained by your credit score and a promise to pay. This includes credit cards, medical debt, past utility bills, personal loans, payday loans, etc.. In a Chapter 7 bankruptcy, this debt can be eliminated in as little as three to six months.
Secured debt usually has collateral attached to it, like your home or your vehicle. If you fail to make the payments, the lender can seize the property and sell it. If you are behind in your mortgage and would like to keep your home, Chapter 13 bankruptcy allows you to pay the arrears over three to five years, depending on the court-approved plan. If you wish to keep the collateral, you will need to continue making the payments. At the end of the plan, all of your remaining unsecured debt will be eliminated.
Some debt will never be discharged, no matter what type of bankruptcy your file. Alimony, child support, taxes, and most student loans will never be eliminated in bankruptcy.
If you would like more information on how you can get a fresh start with your financial future, contact a Fort Worth bankruptcy attorney today.