Many consider bankruptcy a mistake. You can use debt consolidation … bankruptcy makes it so you can never buy a new home or car again … you can use credit counseling to get out of it. There are many myths.
However, debt consolidation companies are a mistake because you have no legal protection and you’re paying them to do what can be done by yourself. They are also becoming less and less honest.
You can in fact buy a new home and car again after filing bankruptcy; maybe not the next month, but soon. If you rebuild your credit, you can buy a new car too. You just may have high interest rates.
Finally, credit counseling is good, and bankruptcy requires you to take it. But learning how to save and spend money only matters after you have discharged debt. If you owe $20,000, credit counseling will not absolve you of this debt, only help with the strategy in discharging it (which then requires bankruptcy).
Now, the best person to help you successfully file bankruptcy, discharge your debts, protect your assets, and understand the process is a Texas bankruptcy lawyer. While many discount how bankruptcy works, a professional lawyer can explain whether it’s right for you.
Eligibility
In order to be eligible for Chapter 7 bankruptcy, in all 50 states you must take the means test. The means test determines if you make too much money to file. Also, if you filed Chapter 7 less than 8 years ago, you have to wait until the time you reach a full 8 years. Though second bankruptcies are not common, they do occur.
Your income as a Texas resident is how you will be considered for Chapter 7. The means test shows the current income for an individual or family on average across the state. If you make less than the average person makes, you are eligible. If you make more, you are not. A lawyer can be invaluable in helping you determine eligibility.
Documents and Proof
In order to successfully file bankruptcy, there is a lot of paperwork. A good Texas bankruptcy lawyer can help you fill out the proper documents, show proof of eligibility, show what income you have, and then show what debts you are eligible to have discharged.
Discharge Major Debts
Chapter 7 bankruptcy is not just you standing in front of a judge asking for a second chance. An experienced Texas bankruptcy lawyer is invaluable in filling out documents, handling creditors, protecting your rights, and being your voice in court.
If You’re Not Eligible
If you’re not eligible for a Chapter 7 bankruptcy, a professional Texas bankruptcy lawyer can best explain your options. Sometimes you may be eligible if you wait a few months. For example, you might have recently lost a high paying job, have a $25,000 debt, and because you were making so much you cannot discharge this debt. But, if you waited long enough to where your past six months income is less than average, not difficult if you have little to no money coming in, you can become eligible again. There are many legal tricks for doing this, just like in protecting your assets.
Protecting Property and Assets
It’s rare to have nothing of value we cannot afford to lose. You may have a car to get you from the home to work. A home you spent $50,000 rebuilding and renovating. These are understandably important to you.
A good bankruptcy lawyer can help you protect them. It may in fact be in your best interest to file for Chapter 13 bankruptcy if you have a lot of property and assets to protect. The best part about a good lawyer is that you can ask as many questions as you want. There is no limit.
