If you find yourself overwhelmed by the debt you are facing, it may be time to consider filing for bankruptcy. Deciding to file for bankruptcy may be one of the hardest decisions you have to make, so it is important to thoroughly research all your options before you officially file. A bankruptcy attorney in Texas can review your case and help you make the decision that is best for you and your family.
Generally, many individuals decide to file for Chapter 7 bankruptcy, which has many pros and cons. Once you file the necessary paperwork for a Chapter 7 bankruptcy, it may only take three to six months for you to become debt free. Another positive is that some of your assets will be exempt from bankruptcy and you may be able to keep money you earn and property you buy after filing. After about one to three years of filing, you will be able to obtain credit again, though it may be at a higher interest rate. Declaring for bankruptcy allows you to get a fresh start, relieving you of many of your financial obligations, freeing you from significant debt and protecting you from aggressive collection tactics.
However, filing for bankruptcy also comes with a price. Certain debts, such as child support, alimony and student loan debt will not be forgiven even if you file for bankruptcy. Bankruptcy can also negatively affect your credit for up to 10 years after you file. The worst part of bankruptcy is likely that you will lose your non-exempt possessions, many of which could be luxury goods.
To find out more about the pros and cons of a Chapter 7 bankruptcy, consider speaking to a bankruptcy attorney.