Will I Be Able to Keep Anything If I File For Bankruptcy in Texas?

Posted on | May 21, 2011 | No Comments

Many ideas and images are attached with bankruptcy, but it is actually very simple. lawfully, you are declaring yourself unable to pay all of your bills . adverse to popular myth , it is not an opportunity for creditors to invade your home and taken over all your possessions . Depending on the type , or ?chapter?, bankruptcy that you file , you will only have to lose certain items or most likely nothing at all.

The majority of people file two bankruptcies, Chapter 7 or Chapter 13. Filing Chapter 7 bankruptcy is requesting the court to free all outstanding debt . Your blackboard will be wiped clean of fiscal bills . This ?reset button? comes with a price; all nonexempt property might be sold for the benefit of your creditors. Exemption laws are different in each state, but generally speaking , most of your assets will be exempt in Texas. Your car and your home are prime examples. Lower-valued items, called personal assets, are not collectible and include such things as your clothes, music, videos, and furniture. The maximum dollar amount that divides collectible from noncollectible will change for each state. You can speak to? a Dallas bankruptcy attorney for better advice about this .

Also, be aware that not all debts can be erased by Chapter 7. Spousal maintenance and child support cannot be dismissed, as well as most taxes . Debts secured by collateral, such as the mortgage on your house or your car loan, cannot be dismissed if you want to retain that particular item of property. And any debt incurred after you have filed the bankruptcy will not qualify, so be deliberate when you put the case on file . Ensure that you will not take on even more debt in the future tense.

If your income or assets fall above a certain limit , you will not? qualify for a Chapter 7 bankruptcy. In that instance , most families file a Chapter 13 bankruptcy as an alternative. In Chapter 13, you won?t lose any of your property to creditors, but neither is your debt discharged immediately. Instead, you enter into a defrayal plan for the next few years, one that is determined based on how much you can afford. You must have income to prove you are capable of following through on that payment schedule .

You may be more concerned with retaining your credit score . It is true that a declared bankruptcy will not help your credit explanation, however it will not hurt it as much as you opine. Your bankruptcy will appear on your credit report for ten years, but in the meantime you will have wiped free all previous debt . This, in hypothesis, will allow you to pay new debt timely , thus improving your credit score. Compared to the alternative, with unpaid debts lingering on indefinitely , bankruptcy may very well be a big betterment to your credit report .

No one likes the brand of filing for bankruptcy, but just the petition itself can accomplish so many improvements . It can put a halt on threatened repossession, can stop wage garnishment, and can stop the fearsome debt collector harassment . It can give you the time you need to adjust your budget and draw up a payment plan, and it can give you a second chance. Sit down with a Dallas bankruptcy attorney, review Texaslaws , and take the time to consider whether bankruptcy is the best choice for you .

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