There are times when some of us find ourselves in situations where there just doesn’t seem to be any way out. Debt is one of these and especially with times being more than a little tough, there are a lot of people who have ended up falling behind on their mortgages, car payments and other debts. Even though they’re not necessarily the ideal solution, filing for bankruptcy may be the best way to extricate yourself from these dire situations – and in some cases, it can even stop foreclosure Dallas area residents fear may leave them without homes.
In Dallas Texas, bankruptcy might be a solution for consumers who find themselves behind on mortgage payments and so deep in debt that they can’t see how they’ll be able to catch up, at least not quickly enough to stop foreclosure. Dallas residents have recourse to the protection of bankruptcy law, however; a chapter 13 bankruptcy can allow debtors to reduce some of their debts and to get a little breathing room while they repay their debts over a period of three to five years via a court mandated payment plan.
While filing for bankruptcy may be able to help you save your home from foreclosure, there are limits to what types of debt may be discharged through a bankruptcy proceeding. For instance, debts which are due to missed alimony payments or child support payments may not be discharged in this way. Neither can student loans or federal income taxes (with some exceptions); and employer withholding taxes are also not eligible for discharge under the provisions of US laws pertaining to bankruptcies.
There are other limits to bankruptcy protection which debtors need to be aware of in regard to their own conduct. For instance, continuing to assume debt which the consumer has no ability or intention to pay is often considered non-dischargeable by bankruptcy courts. By the same token, a loan or line of credit obtained by providing false information will also be exempt from the protection provided by a bankruptcy proceeding.
If the idea is to stop foreclosure, Dallas residents need to avoid engaging in this type of unethical conduct. Similarly, transferring assets in the effort to avoid their liquidation, concealing assets or filing false statements are all grounds for a denial of discharge and may even lead to perjury charges – not at all what most people in search of Dallas Texas bankruptcy would hope for.