When you reach a point where your debt is unmanageable and you are unsure of where to turn, you may consider the benefits of bankruptcy. Though often perceived negatively, bankruptcy actually offers consumers drowning in debt a way to effectively confront that debt and secure a stronger financial future.
Filing for bankruptcy is a major financial decision, one that you should make only after a careful consideration of every available legal option. It is important to understand not only the benefits of this decision, but also how it may impact your life after the process is final.
The benefits of bankruptcy
Chapter 7 and Chapter 13 are the two most common types of bankruptcy available to Texas consumers. The right one for you depends on the circumstances of your situation, such as the type of debt, your income level and more. With either chapter, you will benefit from the following:
- All creditor harassment will stop, including threats of foreclosure and more.
- You will have an organized way by which you can either discharge or pay off debt.
- Depending on exemptions, you may be able to keep your home.
- You will be able to get back on your feet and get a fresh start.
Ultimately, bankruptcy allows you to regain control of your finances and address the debt that affects so many areas of your life.
Are there are any drawbacks to bankruptcy?
As a major life decision, bankruptcy will surely have an impact for months and years after the process is final. You may deal with the following after coming out of bankruptcy:
- Your credit score will be lower, but you can begin to rebuild it almost immediately.
- A bankruptcy filing will stay on your credit report for at least seven years.
- Some debt, such as child support and students loans, are not eligible for discharge in bankruptcy.
The many advantages that you may gain from bankruptcy far outweigh any negative or temporary consequences.
The financial future you deserve
Many consumers never understand how filing for bankruptcy may benefit their family, even if they are overwhelmed by debt and harassed by creditors. When you know all of your legal options, you can make choices that are most beneficial for your current circumstances and long into the future.
It may not seem like it now, but you can have the strong financial future you deserve, and bankruptcy may be the most appropriate and effective path to take in order to reach that goal.