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Bankruptcy May Be Able To Help You

Most people become tense when they hear the word “bankruptcy”. There are many myths about bankruptcy and people are often surprised to learn that bankruptcy is a process that is designed to help the consumer. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 has put forth laws that protect consumers from scams during financial hardships and also prevent individuals from abusing the rights of protection provided by bankruptcy.

What are my options?

When creditors are calling to collect their money, you may feel scared or threatened by their actions. One option is to repay your debts and eliminate the need for creditors to make collection attempts. However, people experiencing financial hardships often have little to no financial means available to manage their significant amounts of debt.  There are credit counseling agencies that provide many different services to help you design a plan to reduce their debt.  They offer educational courses provide debt management strategies such as developing a budget and proper use of credit. Many agencies will assist you in talking to creditors and negotiating debt repayment plans that suit your budget.  For individuals who are significantly in debt and are experiencing an extended financial hardship, bankruptcy may be the best way to protect yourself from creditors while eliminating your debt.

When to consider bankruptcy

If you have enough debt that cannot be paid off within 3-5 years and are experiencing a financial hardship to the point they cannot afford to make their debt payments regularly, you should contact a qualified bankruptcy attorney. The inability to pay your debts each month is an indicator your financial situation has become unmanageable.
If you find yourself borrowing more money to pay off a different loan, you’re putting yourself in more debt. With so many low interest loans being advertised, it is easy to fall into taking out another line of credit to help pay off a higher interest account. Doing so only leaves you with another monthly payment to be responsible for paying each month. If your credit is already been impacted by a defaulted loan elsewhere, you may find it hard to obtain a loan at all. Even refinancing a home to lower your monthly payment can end up costing you more money over time and can affect whether you are able to obtain hardship assistance from a mortgage loan lender.
If your property has been put into foreclosure, bankruptcy may be able to protect your home from repossession. Texas is one of many states that provides several  bankruptcy exemptions , which allow a debtor to keep most of their property through bankruptcy.
If you have received a notice of wage garnishment, bankruptcy can provide protection of your income and assets from being taken by creditors. When filing for bankruptcy, an automatic stay is placed to prevent creditors from collecting on debts. Once the court has discharged your bankruptcy case, the creditor is unable to make any further collection attempts on the owed debt.
Get help with the bankruptcy process

Bankruptcy is an involved process that takes planning and consideration on the part of the debtor. There are eligibility requirements that must be met in order for the debtor to qualify for bankruptcy. The debtor must be able to prove financial hardship by passing a means test, which evaluates your debt to income ratio. Depending on your eligibility, you may not qualify to have your debts eliminated through a Chapter 7 bankruptcy. Instead your debts may be restructured through a Chapter 13 Bankruptcy, if your income is sufficient enough to warrant a modified monthly payment plan.  The bankruptcy laws allow only certain types of debts to be managed under a bankruptcy. Back due child support, student loan debt and back taxes are typically not dischargeable through bankruptcy. It is important you contact a bankruptcy attorney to walk you through the process of evaluating your debt management options.  An experienced bankruptcy attorney can provide you with the tools and assistance you need to regain control over your finances.

Christopher understands that financial hardships can affect honest, hard-working people. Growing up in a very blue collar family and rural area of Indiana , money didn’t always come easy for his parents. The struggles his family faced in his childhood made a significant impression on his business philosophy today. As a Fort Worth bankruptcy lawyer this practice has given me the opportunity to directly impact the lives of many people. For more information please visit
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