Filing bankruptcy in Dallas Texas need not be a nightmare where you spend months to years trying to discharge debt. In fact, you can save yourself a lot of trouble by reading guides just like this one from legal authorities. More important is understanding how the Dallas bankruptcy process works and who can help you.
While the Texas economy has been hit less by the current financial crisis, as bankruptcies and foreclosures are much better than states such as Georgia, California, and Florida, the problem is still here. When you’re considering Dallas bankruptcy, look over the following action steps.
1-Be Honest
Bankruptcy fraud is very common across the country of late, mainly because filers are trying to protect money, property, and assets. This can be understandable: you spent $50,000 on the home, you have a family to support, you can’t be on the street, and so on. However, bankruptcy fraud is easy to catch when you’re trying to file, and robs you of the benefits of bankruptcy in the first place.
2-Set Goals
On a more positive note, setting goals can actually help you decide what you want and can keep, what you stand to lose, and where you want to be months to years down the road. For Chapter 7 bankruptcy, you might have a goal of discharging a huge medical debt in 4 months, to continue paying on your home, and to avoid wage garnishment. If you have a Dallas home in danger of foreclosure, you might set a goal of protecting it with a Chapter 13 bankruptcy, while also paying on other debts in a more affordable manner. These techniques are important: they can give you hope.
3-Learn the Rules
Filing bankruptcy in Texas is different than other states. Each state has unique laws for eligibility, exemptions, and protections. It’s important to understand what you stand to lose and keep if you file for bankruptcy in Dallas. For example, if you want to discharge your debt with Chapter 7, you cannot make too much money. On the other hand, you may be able to protect your home with a bankruptcy exemption. There are hundreds of laws, making the next action step important.
4-Get a Dallas Lawyer
A Dallas bankruptcy lawyer is an open book for you to read when it comes to the legal issues involved in filing. This action step is a must: if you do not understand bankruptcy, even if you think you do, a lawyer protects you financially. If you are not eligible for Chapter 7 because you make too much money, a good lawyer can go over the advantages of Chapter 13. If, on the other hand, you are worried about losing your home, an experienced attorney can explain exemptions.
5-Know the Advantages and Disadvantages
Chapter 7 is best for discharging unsecured debts, monies owed for credit and medical. Chapter 13 is best for avoiding problems with secured debts, monies owed on your home and car. There are numerous more advantages. Keep reading and keep asking questions — those are the best action steps.
