Timing Debt Relief

Most people ignore their finances until a problem arises.  While some may experience financial hardship that builds up over time, some simply fall into hard times unexpectedly. Although how you end up in debt is not important, one thing that is important is finding a solution quickly. If you are seeking debt relief help or looking for a fresh start, consider filing for bankruptcy with the guidance of a Dallas bankruptcy lawyer. Your lawyer will help you understand the process and make an educated decision.

The first item to consider on your debt relief journey is your initial case filing and eligibility.  When you file for bankruptcy, you will have to fill out a form called the “Financial Affidavit.” This form is used to determine if your income and expenses are reasonable. If your income is low, and you have no assets to speak of, you may be able to get your bankruptcy approved within a few months. On the other hand, if you have a good income, and substantial assets, you may be facing a longer bankruptcy process. In some cases, the bankruptcy judge may order you to go through some type of debt counseling. This will help you come up with a solid plan to pay back your creditors. If you are in a situation where you need to file a bankruptcy, it is important that you have an attorney representing you to help guide you through the process.

Second, the court will look at your monthly expenses. If your income is consistent, but your monthly expenses are above average, the court may require you to seek some type of debt counseling. This may be in the form of a Chapter 13 payment plan, or through a Chapter 7 trustee.

Third, the court will look at your credit report. If you have a history of consistently making your payments on time, the court may be more lenient. Fourth, the court will make an assessment of your ability to repay your creditors. If you can prove that you have no ability to repay your creditors, the court may consider a Chapter 7 bankruptcy filing. However, if the court finds that you have the ability to repay your creditors, the court may consider a Chapter 13 bankruptcy filing. Make an appointment with a bankruptcy attorney to discuss your options. In many cases, you will be faced with difficult decisions and challenges. The sooner you take action the better.