How does bankruptcy help rebuild your credit? If you owe $50,000, then discharge the debt with Chapter 7, won’t that hurt your credit? It will hurt your credit as bad as defaulting on the loan. You have a much better chance of rebuilding your credit after filing bankruptcy rather than doing nothing. A bank will feel more confident in giving you a loan if you owe nothing rather than if you owe a huge medical or credit card bill.
Discharge Medical Debt
Speaking of medical bills, this form of debt is the most common reason for filing Dallas Chapter 7 bankruptcy. You get sick, go to the hospital, have no insurance, and get a $25,000 medical bill. You get hurt, have to get medical attention, then find your insurance does not cover this type of injury. A loved one might get sick or hurt,and because you lack insurance, you’re faced with an impossible bill. It happens every day. Your best option may be to discharge the debt with a Chapter 7 bankruptcy.
Discharge Credit Card Debt
Credit card debt is the second leading cause of bankruptcy in Dallas. If you owe so much you cannot pay your mortgage, if you lost your job and ran up some debt, if you or your spouse made some buying mistakes – these can all result in impossible debts. The answer is not always to file Dallas Chapter 7 bankruptcy, but to eliminate the debt, it’s one of the best.
Protect Your Income
If you owe money because of a medical or credit card debt, you may fear wage garnishment. In the state of Texas, only the lender can take your home to repay the mortgage, but creditors can have your wages garnished. Bankruptcy stops this.
Discharge Your Mortgage
If you simply cannot afford to pay on your Dallas home mortgage, Chapter 7 bankruptcy can discharge the debt. If you fall behind in payments, you can buy yourself some time to find a new residence by filing.
Who likes creditor harassment? First off, there are rules to be followed – you can, for example, stop harassment by writing your creditors a letter. While Chapter 7 bankruptcy should not be filed simply because of harassment, stopping collections is one major benefit. Creditors will have no more reason to harass you. If they continue, you can get your lawyer to help.
The Dallas Fresh Start
Texas has not been hit as hard by unemployment, bankruptcy, and foreclosure as some other states, but the reality is our nation’s economy has had better days. You have options beyond Chapter 7 bankruptcy, but if you have unsecured debts like credit and medical, this is a good option. In a matter of months, you can start rebuilding your credit and get a fresh start.