For many people, financial hardships arise through uncontrollable circumstances. Being laid off at work, suffering from a medical condition or losing a spouse in death or divorce can all be factors that lead a person into a debt burden. When the unforeseen strikes, our finances often suffer.
Where to Turn
Filing for bankruptcy is generally an option people tend to avoid. However, for many people it isn’t just the only option, but it is the best option. When your house is at risk of foreclosure, you are repeatedly harassed by debt collectors and you don’t expect an improvement in your financial situation anytime soon, bankruptcy can be a great tool of relief from your debts.
Chapter 7 bankruptcy is a type of liquidation bankruptcy, in which your debts can be resolved within a matter of a few short months. You must meet strict income requirements in order to be eligible for Chapter 7 bankruptcy. Your non-exempt assets are liquidated in order to satisfy debts to creditors, but Texas bankruptcy exemption laws offer forgiving protection over most of your personal property.
Chapter 13 bankruptcy is a repayment plan bankruptcy, in which your debts will be repaid through a monthly payment over the course of three to five years. There is generally no income restriction on filing for Chapter 13. The good thing about Chapter 13 bankruptcy is all of your assets and property is protected from creditors as long as you maintain your payments according to the debtor’s plan.
Bankruptcy is a valuable tool, but should never be considered lightly. Contact a Dallas bankruptcy attorney to review your case before deciding whether it is right for you.