What Bankruptcy Can and Cannot Do For You

If you are running into severe financial problems you are most likely overwhelmed and frustrated. You don’t know which way to turn and are thinking about bankruptcy. This may be a good and perhaps the only option for you, but you need to understand what it can and cannot do for you.

Dealing With Debt

It can help to get rid of unsecured debts like credits card debt, for example. This is often one of the major debt problems that many individuals face and what leads them into grave financial difficulties. Another type of unsecured debt may be your medical bills. If the majority of your financial problems are coming from unsecured debt then bankruptcy most likely is a viable solution.

If you have secured debts like your mortgage or vehicle, a bankruptcy may not be able to stop the repossession of these. The bankruptcy can eliminate the debt, however it cannot stop the creditors from taking repossession action.

Your best recourse is to speak with a bankruptcy attorney to determine what your financial situation is. There are different types of Dallas bankruptcy with the most common being a chapter 13 and a chapter 7. It would have to be determined which you would be eligible for. Every bankruptcy case is unique and has to be processed based on its own merits. You cannot judge or determine what will happen in your bankruptcy based on what happened with a friend or family member’s bankruptcy.