For some people, bankruptcy is synonymous with “financial ruin” and is something that should be avoided at all costs. While filing for bankruptcy is not something that you should take lightly, it will also not leave you destitute.
In fact, many people who file for bankruptcy are in a better place financially immediately after filing and are able to keep most, if not all, of their assets.
The Bankruptcy Discharge
One of the main benefits of bankruptcy is the discharge of debts. When a debt is discharged, it means that the filer is relieved of liability for repaying the debts.
The creditor to whom the debt is owed no longer can try to collect the debt and cannot report that debt as delinquent. Some of the categories of debt that can be wiped out through various forms of bankruptcy include the following:
- Credit card debt
- Medical bills
- Utility bills
- Unpaid rent
- Certain tax debts
- Personal loans
- Auto loans
- Business debts
- Collection accounts
- Civil penalties
- Deficiencies resulting from repossessions
Bankruptcy is not a one-size fits all solution. Whether bankruptcy is right for you depends on a number of factors, and there are various types of bankruptcy that may be available. As a result, you should not submit any paperwork to the court without first carefully evaluating your options.
In fact, in certain cases, you may not even be able to file for bankruptcy because of the “means test,” a complicated calculation that weighs the amount of money you make against the amount of your debts in order to determine whether you can afford to repay some or all of the debts.
Even if you are legally eligible to file for bankruptcy, it may not be advisable to do so in certain circumstances. The most effective way to determine whether bankruptcy is right for you is to have an experienced lawyer review your case.
Contact an Arlington Bankruptcy Lawyer Today to Schedule a Free Consultation
If you have gotten behind on your bills and are unable to keep up, you should discuss your financial situation with an experienced bankruptcy attorney.
To schedule a free case evaluation with Texas attorney Marilyn D. Garner call our office today at (817) 505-1499 or contact us online.