If you are in need of debt relief, you may be considering the many options available. While there are several options for seeking relief from your debts, they are not all created equal. In fact, the most important step in seeking debt relief is to work with a qualified financial expert. Having an experienced Dallas bankruptcy attorney assist in your case can help you review your options, and weigh the risks and benefits of each. Before you decide on debt relief, be sure to ask your attorney a few important questions.
Which type of debt relief is best for me? There are two chapters of personal bankruptcy available, and it is important to review the risks and benefits of both in regards to your financial situation. Most people seeking bankruptcy are looking for quick debt relief. This is generally through a Chapter 7 bankruptcy. Through Chapter 7, you can eliminate your debts in a matter of months; often with little out of pocket costs. However, quick debt relief comes with some risks.
Can I keep my assets? In some cases, people filing for Chapter 7 may have assets at risk of liquidation. This is why working with an experienced attorney is beneficial. If your assets are at risk and unable to be protected through bankruptcy exemption laws, your attorney may suggest filing for a Chapter 13 bankruptcy instead. In Chapter 13, your assets are not likely to face liquidation and you can pay down your debts at a fraction of what is owed.
Am I ready to file for bankruptcy? Filing for bankruptcy is not a process that should be rushed. Due to the nature of aligning bankruptcy laws to offer its fullest protection from asset liquidation or high repayment plans, the timing of your filing is important. Unusual spending habits, major payments to creditors, or fluctuations in income prior to filing your case could jeopardize your ability to obtain a debt discharge. Your Dallas bankruptcy attorney will review your recent financial history to determine if your habits in the months leading up to bankruptcy are sufficient enough to warrant a successful case outcome.