Although you have been doing everything within your power to pay off your debts, you still cannot catch up. You are selling items, working overtime and draining your savings, but you feel even worse off than when you started.
Bankruptcy may have a negative reputation, but it can have many benefits for you. The ability to wipe out some of your debts allows you to start fresh and get back on track with your finances.
What is bankruptcy?
When you file bankruptcy, you go through a court process where a judge and a court trustee review your liabilities and assets. After this examination of your financial health, they determine whether to discharge your debts. Bankruptcy can prevent wage garnishments, repossession of a vehicle and foreclosure on your house. This legal procedure can stop creditors from attempting to collect money from you. There are different bankruptcy types for varying circumstances.
Do you have insurmountable debts?
When you fall behind on your payments, debts can become impossible to pay back due to increasing interest rates and late fees. If you can pay off all your debt in two years, you may not need to file bankruptcy. However, if it will take you longer than that or your liabilities are more than half your income, you may want to start the bankruptcy process.
How do you file for bankruptcy?
Some steps to take before filing bankruptcy in Dallas, Texas, include:
- Collect records of all your debts
- Gather documentation of your assets
- Seek credit counseling assistance
- Consult with a legal professional
Bankruptcy is a complicated legal process with many requirements and potential for errors. However, a successful filing can help you start over, build your credit and plan for your future.