It doesn’t take long for debt to get out of hand. Dallas Bankruptcy Attorneys hear from young people from time to time who have acquired a significant amount of unsecured debt very early on in their credit history. Sometimes stigmas surrounding a Texas Bankruptcy can often prevent young individuals from filing for the debt relief they so desperately need.
If the debt goes on unresolved, your financial future could be at stake. The cost of continuing to accumulate negative items on your credit score from things such as late payments, over-utilization of credit, and being sent to collections can make it impossible to get a loan or prevent you from being hired in some industries. Once these occurrences start to lower your FICO score, it should certainly be an item of concern.
Credit Card Debt
Everyone’s financial situation is different, but if you owe $12,000 or more in credit card debt, you should start taking immediate steps to reduce your debt. Especially if you have a large amount of income dedicated to paying monthly credit cards. It’s easy for consumers to have as much as $200 per month in interest.
What if the debt belongs to only one spouse? This can sometimes happen to young married couples when one spouse brings a significant amount of unsecured debt into the marriage. Couples must have very frank financial discussions, and decide to file jointly or individually. One advantage to filing jointly is that under Texas Bankruptcy Code, married couples can double their exemptions.
Chapter 13 or Chapter 7
Deciding between Chapter 13 and Chapter 7 bankruptcy in Texas, is initially, only a matter of how much money you make and how much of that can be put towards paying back your creditors. The income requirements for Chapter 7 are much more stringent, and even if you qualify ensure you consult at a Dallas Bankruptcy Lawyer before filing. Depending on the secured property you are paying on, it may be in your best interest to file for Chapter 13 bankruptcy instead.
Contact a Bankruptcy Lawyer
The idea of bankruptcy is one of obtaining a fresh financial start. Under certain circumstances, it makes sense to seek debt relief, no matter what your age. Filing bankruptcy in your 20s offers the distinct advantage of being over and off your credit report while you are still in your most financially productive years. Contact a Fort Worth Area bankruptcy attorney to obtain the necessary legal help when considering bankruptcy. Having a bankruptcy lawyer can help you avoid pitfalls resulting in missed exemptions or bankruptcy discharge.