Bankruptcy is commonly built up by society and the media to be this huge, hulking,
and frightful financial disaster that leaves people penniless and helpless.
But you have to consider: if it really was that bad, why would anyone
go through with it? The truth is that bankruptcy, when used properly,
can be a saving grace from fiscal woes. If you are considering bankruptcy,
there are a few things you really should know before you get too far into
Asset protection: Once again contrary to popular belief, you can hold onto some of your most
important assets during a bankruptcy. Your ability to do so will depend
on your kind of debt and what you own. A bankruptcy attorney can tell
you if there are ways for you to protect them upfront.
Medical troubles: It is estimated that at least 50% of all bankruptcy filings by individuals
are done due to unexpected medical expenses. If you are watching your
finances drain due to a medical emergency, considering bankruptcy could
be the right move for you.
Multiple choices: Did you know there are multiple forms of bankruptcy? Most people will be
faced with at least two options –
Chapter 7 or
Chapter 13 – but there are others. Chapter 7 will attempt to wipe out all debt
in one blow while Chapter 13 formulates a repayment plan over three to
Qualification: Just because you want to eliminate your debt completely through Chapter
7 bankruptcy doesn’t mean you will be permitted to do so. You must
actually qualify for Chapter 7 through a means test drafted according
to the average income of people in your state.
Credit score: A bankruptcy is going to appear on your credit, usually for about 10 years.
What it does once it is there is not predetermined. Creditors may be hesitant
to give you loans, or no change in particular could happen. Don’t
assume your credit will be destroyed forever and run from bankruptcy on
Joint pain: If you do successfully file for bankruptcy, creditors cannot pursue you
anymore for debts. However, if the debt was on a joint account, anyone
else on the account who has not also filed for bankruptcy will absorb
your debt and be responsible for it. Always work with other relevant parties
when considering bankruptcy.
Public eyes: Keep in mind that your bankruptcy is not private by default. It goes on
public record. As nearly everyone else in the world will not take the
time to look up names of people who have recently filed for divorce, this
should not deter you from filing if necessary. There is no shame in seeking
Considering Bankruptcy? Consider The Pritchard Law Firm
When you are considering filing for bankruptcy, you are sure to run into
a mass of questions about your finances, your future, and your stability.
Thankfully, you do not have to search far and wide for the answers. Our
Fort Worth bankruptcy lawyers can answer all of them for you in a friendly
and timely manner, and we have nearly 50 years of collective experience
so you know you can trust us. Start today by calling
to schedule a
FREE initial consultation with our team.