Some times when you are stressed over your financial situation, and you feel you may have no other option but to file bankruptcy, there may be another solution for you.
Bankruptcy can stay on your credit for up to ten years, making it difficult to get new loans or credit cards. Not that that is always a bad thing, but if you can avoid bankruptcy, it is always better to do so.
When you have fallen behind in your secured payments such as your home or your vehicle, and you don’t have enough income to catch up. Filing bankruptcy may not help you in the long run since you will have to continue to make these payments after your bankruptcy is over if you want to keep these items.
You may not want to file Chapter 7 bankruptcy if you have nonexempt assets that are valuable and may be liquidated to satisfy your creditors. If you can afford the payments, you may be able to file Chapter 13 bankruptcy and make the payments over a three to five year period while allowing you to keep all of your assets.
Filing bankruptcy will not be a good option for you if you can comfortably pay all of your bills now. Chapter 7 has specific rules about how much income to debt ratio you have.
If your debts are questionable and you have strong defenses for not paying them, usually these type of debts can be settled out of court. If the creditor does not agree to resolve, you still have the option of filing bankruptcy and eliminated the debt.
If you received a Chapter 7 discharge within the last eight years, you might not receive another one. You can, however, file a Chapter 13 in most cases.
It is always better to talk to a Fort Worth bankruptcy attorney to discuss your options when you are overwhelmed in debt.