There’s nothing worse than being deeply in debt; even small debts can cause a great deal of stress to consumers and struggling with a heavy load of debts can lead consumers to think that there is no way out of their situation. While it’s not anyone’s first choice, a Dallas Texas bankruptcy is one option which can allow debtors to become free of debt while keeping most or all of their property. Even in cases where the debtor’s obligations are not entirely discharged, they are still usually able to get some breathing room and get the extra time they need to catch up on their bills as long as they have a regular income.
Bankruptcy protection may be filed for either individually or jointly in the case of married couples. For individuals and couples, there are two types (or Chapters, as they are known) of bankruptcy protection which may be filed for. These are Chapter 7 and Chapter 13 bankruptcy, each of which has its own set of pros and cons.
Under Chapter 7 bankruptcy protection, debtors will usually have most or all of their debt discharged and will emerge from the process with their creditors having no claim on their assets or their future income. In a Chapter 13 bankruptcy, Dallas area debtors will often have their debts reduced and be able to repay their debts over a three to five year period through a payment plan decided upon by the court.
During and after a Dallas Texas bankruptcy, the debtor’s creditors are barred from attempting to collect from the debtor or filing suit against them; any attempts to collect may be reported to the bankruptcy court, which may result in the creditor being held in contempt of court and fined. Aside from the discharge of debts, this is one of the greatest benefits for consumers who seek relief from their debts through a bankruptcy proceeding.
Before going ahead with a Dallas Texas bankruptcy filing, debtors should explore other options for reducing or eliminating their debt. In many cases, debtors may be able to settle out of court with their creditors and have their debts or the amounts of their payments reduced to make them more manageable. Debtors may also borrow against property or liquidate assets to help pay off their debts. These are all options which debtors can look into with the assistance of a consumer credit counselor – which is actually the first step in filing for a Dallas Texas bankruptcy. There may be other ways to get out from under your debts, but if there’s no other way, the option of filing for bankruptcy protection is there for consumers who need it.
When you’re ready to get out from under the crushing debt load and begin a new debt-free life, contact Dallas bankruptcy lawyer Rustin Polk by clicking here. Tell our Appointments Coordinator, Kimberly, that you are a website reader and she will set you up with a free, no obligation appointment to learn how we can help you.