Bankruptcy is not only a means of ending years of financial hardship, it can also be a chance to start over and begin building long-term wealth and financial security. The primary purpose for filing bankruptcy is to receive a discharge of debts. An experienced bankruptcy attorney can provide clear and knowledgeable support through every step of this process.
Your mortgage payment may very well be your largest expenditure every month, and can be easy to get behind on if you fall on hard times. Most lenders will be unwilling or unable to work with you in this situation, and after about three months of delinquent payments, will begin the foreclosure process. Filing bankruptcy prior to this phase grants you immediate reprieve, and will safeguard your family’s home. Upon filing either Chapter 13 or Chapter 7, the court will issue an Order for Relief effective immediately. This order directs your creditors to halt in their collection attempts.
Other benefits to filing bankruptcy include:
- Avoid car repossession
- Provides the opportunity to discharge some debts such as credit cards, medical bills, and IRS taxes
- Stops collections and harassing phone calls
- Stops wage garnishments
- Provides the opportunity to get back on your feet and start with a clean slate
Chapter 13 v. Chapter 7
Chapter 13 is a restructuring bankruptcy designed for debtors with regular income who are able to repay at least some of their debts through a repayment plan. Chapter 7 is a liquidation bankruptcy intended to wipe out a debtor’s general unsecured debts.
There are pros and cons to either solution, and certain contingencies can be involved. An experienced bankruptcy attorney can help you decide which is best for you and guide you through the entire process.
Life After Bankruptcy
Bankruptcy is not the beginning of the end for your credit. It can be a means of reducing or even completely alleviating the troubles encountered with many financial settings, be that IRS taxes, auto payments, unemployment, medical bills, and many other situations.
By creating and adhering to a reasonable budget, saving money, and obtaining a secured credit card, you can begin to rebuild your wealth after bankruptcy and enjoy a financial security that comes with making your money work for you.
If you find yourself in the context of any of these situations, take the first step toward relief by contacting our office. The friendly and knowledgeable bankruptcy experts at the Daniel Law Firm will be glad to assist you in determining which option is best for you. Don’t spend another day letting financial woes keep you from living the life you want.
Contact a Dripping Springs Bankruptcy Attorney at The Daniel Law Firm today at (512) 615-3569.