Bankruptcy isn’t dinner table conversation, water cooler talk at work, good to talk with the spouse about, or proper to speak to children about. Well, sometimes it just seems that way. That’s a shame, because although filing bankruptcy has immense benefits, it seemingly creates a stigma of either not being able to handle money or even worse having to ask for financial help from others. This is all wrong. Your rights, the reason you pay taxes,the reason you work – these make it clear bankruptcy is a good option. You have a right to file if you’re a U.S. tax paying citizen. If you work, be it at home or at in day job, you also have rights. You may make mistakes. You may not pay your bills on time. This does not mean you are a bad person or necessarily terrible with money.
Texas bankruptcy is all too often kept a secret, or worse, not filed soon enough. It’s common for people to avoid the issue for weeks if not months longer than they should. Why? Because sometimes it’s like admitting defeat – getting fired from the job of handling your own finances. It’s quite common for people to stall on this key issue until it’s too late. The most important thing to be said is, when it comes to bankruptcy, making the decision soon and with guidance is the best step you can take.
You do not always have a right to file Chapter 7 or Chapter 13 bankruptcy. For one, you might make too much money or owe too much. The great majority of Texans are eligible for at least some form bankruptcy help. Even if you make too much money to file Chapter 7 – where the income limit is based on the median Texas income – the great majority have the right to file Chapter 13.
Chapter 7 bankruptcy filing makes clear your rights. You can discharge debt, legally, and in a court of law. You need not be harassed by creditors any more. You need not pay on debts you simply cannot afford. In most cases, it is your right to keep all property or to negotiate in order to keep it. In some cases, by law your assets can be liquidated, but the majority of filers lose absolutely nothing. Why is bankruptcy like this, yet still has a stigma? All that can really be said is it’s not rational.
You almost always have a right to file Chapter 13 bankruptcy, where you pay some or all your debts in manageable installments set up by the courts. It is your right to keep the home you’ve paid on for years if not longer. It is your right to keep all other assets.
You also have the right to get legal representation. Bankruptcy lawyers quite often get a bad name by the so called “bankruptcy mills” who work on the cheap and offer little if any guidance. You can query as many professional lawyers as you want, fire one at any time, and do this at your own pace. If you can find the right lawyer, hold onto them. They may cost a bit more – it’s their right to charge more for a professional service – but it sure helps when you’re trying to save your financial future.
