Some people think you must be flat broke to get bankruptcy protection. The truth is you can still have a job and file bankruptcy. Sometimes unforeseen actions cause us to get behind in our debt.
- Large medical bills
- Death or divorce of the principal wage earner
- Loss of a job or hours cut back
- Mismanagement of income
Filing bankruptcy can prevent your possessions from being taken away without your permission. Your creditors may try to gain control of your assets by seizing them for non-payment. Bankruptcy is a way for you to protect the assets that you have.
When you file bankruptcy, you will not automatically lose all of your belongings to pay the creditors. Each state, as well as federal laws, has exemptions that protect certain assets during the bankruptcy proceedings. Typically these exemptions cover your home, your car, and personal belongings. Most people that file bankruptcy do not lose any of their assets.
If you have mostly unsecured debt such as credit cards, medical debt, and personal loans, Chapter 7 may be the best option for you to eliminate such debt. Chapter 7 is usually completed within three to six months with no payments from the debtor.
If you have fallen behind on your home payments, and you wish to keep your home, you may want to file Chapter 13. This type of bankruptcy has court-approved payment plans that allow you time to catch up on your debt with a three to five-year repayment plan.
If you are concerned that you make too much money to file bankruptcy, contact a Fort Worth bankruptcy attorney to discuss what options you may have.