When you are struggling financially, sometimes bankruptcy can be the wrong choice to get your finances back on track. A chapter 7 bankruptcy is the fastest and easiest form of bankruptcy. In as little as three to six months, all of your qualifying debt can be eliminated. Sometimes it is better to file a Chapter 13 bankruptcy or try to settle your debt out of court. Here a few reasons why Chapter 7 may not be the right choice for you.
- If you can afford to pay all of your debts without creating a hardship.
- If you have only a few debts and defenses for them, usually, the disputes can be settled out of court.
- If you have assets that are valuable and may not be protected by the exemption rules, if you have a steady source of income, you may want to file Chapter 13 bankruptcy and keep all of your assets.
- If you have received a Chapter 7 discharge within the last eight years, in most cases, you can still file Chapter 13 and make back payments on your debt.
- If your debts are secured by property, and you do not have the funds to make the payment and catch up on back payments.
- Chapter 7 bankruptcy may not be the right choice if you cannot afford to pay for the property after bankruptcy.
When Chapter 7 bankruptcy is a good choice.
- If you are overwhelmed by unsecured debt.
- You are about to lose your home or your vehicle due to non-payments
- Your state has generous exemption laws, and you will not lose any assets.
- You need to stop a wage garnishment.
Different chapters of bankruptcy help people with various financial issues. Contact a Dallas bankruptcy attorney today to find out if bankruptcy can help you get the financial relief you deserve.