Points To Ponder When Filing For Bankruptcy in DFW
If you are thinking about filing for bankruptcy in the DFW area, then there are some points to ponder while doing so.
Even though the new bankruptcy laws have made it difficult to file for a Chapter 7 bankruptcy, it is still possible to do so if you pass a few tests.
Filing for Bankruptcy Is Not the End of the World
It just means that you have realized that you are ready to make a fresh financial start. Your credit rating will come down, but it does not mean that you can never take a loan for the rest of your life.
If you do not wish to tell your friends, relatives or even your employer about your bankruptcy, then chances are that they will never find out.
Filing bankruptcy doesn’t mean that you are unsuccessful or that you are a bad person. Rather, it means that you have the fortitude to make the decision to improve your life and those of your loved ones.
Contact a Knowledgeable Bankruptcy Attorney
You should contact an experienced and knowledgeable bankruptcy attorney who will be able to guide you on whether to file your bankruptcy under chapter 7, 11 or 13.
Under the new laws that came into effect in 2005, it is now quite difficult to file bankruptcy under Chapter 7. Filing Chapter 7 essentially means that a chunk of your debt can be discharged, provided you pass the ‘means test’ or the ‘median income test’.
If your bankruptcy attorney determines that you are eligible to file under Chapter 13, then they can work out repayment details along with your creditors. This repayment schedule could last anywhere from 3 to 5 years, provided the plan gets approval from the court.
Filing under Chapter 13 can give you a breather - and help you pay off your old debts in a way that won’t sink your financial ship.
What Happens After I File?
It might take around 3 to 4 months for the court to come to a decision once you have filed for bankruptcy. An efficient bankruptcy attorney can ensure that you do not have to visit the bankruptcy courtroom in person – which in and of itself can be very stressful - and they can take care of all the required paperwork.
Your credit rating will be wiped clean once you file for bankruptcy. But by repaying your debts on time, you can ensure that your credit rating makes a comeback, and you can soon be eligible for a loan.
Some of your old IRS taxes could also be discharged when you file for bankruptcy depending on your particular situation.
If you have student loans, then some of them may not be discharged when you file for bankruptcy. However, your creditors will have to stop calling you and will not be allowed to harass you for overdue payments once your bankruptcy attorney has filed on your behalf.
So instead of listening to rumors, get the advice of an experienced advocate that you can trust. Bankruptcy attorney Allmand and Lee stand ready with a combined 20 years of experience to help you file for bankruptcy, so that you can get out of your financial quagmire and start a new phase in your life.