If you’re considering bankruptcy, then you’re most likely already feeling overburdened with debt and the ensuing financial constraints. Your head is probably swirling with a number of question, like “is bankruptcy right for me?” “What are my options when filing for bankruptcy?” and “What can I expect after I file for bankruptcy?”
First things first, there is no online article, blogpost, or seven-step checklist that can answer the question whether or not bankruptcy is right for you. Filing for bankruptcy is a hard decision, and it is not only a financial decision, but a personal and emotional decision as well. While this article can’t answer the question for you, it can help guide your decision-making process.
More than likely, you are already having a tough time paying your bills every month, and you may be worried about whether you will ever be able to pay off the outstanding balances in full. If you’ve already made significant efforts to downsize your life, cut back on unnecessary expenses, and tried to earn more through overtime or a part-time job, but still struggling under the weight of it all, then it might be time to begin seriously considering bankruptcy.
Some common breaking points across bankruptcy cases include:
- Increased interest rates due to late or delinquent payments.
- Having to use credit cards for daily purchases or normal living expenses without being able to pay off the balance in full.
- You’ve undertaken significant efforts to downsize your life including moving to more affordable housing, selling your car or selling other assets or personal belongings.
- You’re working multiple shifts or multiple jobs in order to make ends meet.
- You’ve had to tap into retirement funds in order to pay off debt or other obligations.
- Your wages are being garnished.
If one or more of these circumstances applies to you, then you may want to take a closer look at filing for bankruptcy, but if not, you should try to consider other efforts to improve your financial situation, including debt consolidation or credit counseling.
It is also important to consider the near future when you are making a decision. While you may be living on the edge today, it could just be a short-term setback. Consider the chances of whether you might be able to find a new or better job in the near future or might otherwise be able to increase your cash flow. If so, you may want to wait it out until you can better tackle your debts.
It’s also important to consider the types of debts you are holding and whether or not they are unsecured. Not all debt liability will disappear in bankruptcy, but you may be able to reduce or eliminate credit card debt, medical bills, collection accounts, and so forth.
Finally, you should also understand the differences between Chapter 7 and Chapter 13 bankruptcy and determine whether or not you meet the eligibility requirements for Chapter 7. If not, you will have to file for Chapter 13 bankruptcy, which will not eliminate everything, but will pay off your outstanding debt, and often discharge some via a court supervised three to five-year plan.
The big advantage with bankruptcy is that it will allow filers a fresh start where they can make new, positive changes in how they handle their money. Everyone’s situation is different, but if you are considering filing for bankruptcy in the state of Texas, then you should be sure to contact the Texas bankruptcy lawyers at Fears Nachawati. Having an experienced bankruptcy attorney to turn to can help you decide if filing for bankruptcy really is the best option for your situation and how to go ahead with the process if so.
Please call (866) 705-7584 or visit the offices of Fears Nachawati located throughout Texas, including in Houston, Dallas, Austin, Fort Worth, and San Antonio.