Bankruptcy Avoidance in Texas Helps Consumers Pursue Other Debt Relief Options
Insightful lawyers look for alternatives to help clients struggling with debt
Some people with serious debt problems believe that bankruptcy is the only effective solution and rush into that process without understanding the longstanding consequences of such a decision. Years after filing, you might still have trouble getting the home or car you wanted because of a previous filing. At Tom Thomas Legal, P.C., our Texas attorneys concentrate on debt relief and can often guide clients toward financial stability while avoiding the process and negative effects associated with a bankruptcy filing.
What you should know before filing for bankruptcy
In a Chapter 7 bankruptcy, non-exempt debts are discharged. This has appeal to debtors who want to make a new start. However, after a thorough review of the situation, an individual or family might realize that bankruptcy does not offer a new beginning after all. Even after the bankruptcy process is completed, you might have to deal with:
- Damaged credit — Typically, a Chapter 7 debt discharge remains on the filer’s credit report for 10 years after they file for bankruptcy. Even a Chapter 13 action, where you would have to submit to a strict repayment plan, likely will affect your credit rating for ten years. You could benefit by learning about the ways you can stop creditor harassment without hurting your ability to get a loan or credit card for a long time after your current debt issues are resolved.
- Liquidation of assets — As part of a Chapter 7 bankruptcy, some of your assets might be taken and used to help pay off your creditors. While some items are spared from liquidation, it’s possible that you could lose property that you never thought was at risk.
- Debts exempted from bankruptcy protection — Not every type of debt is dischargeable during a Chapter 7 proceeding. Student loan obligations, back taxes and other debts are exempted unless extreme circumstances exist. Before you make a serious decision about the best way to deal with your financial difficulties, you should be sure you understand exactly which debts would remain.
Our accomplished Texas debt defense attorneys will give you a clear perspective on your options, including possible alternatives to bankruptcy.
How skillful debt negotiation can prevent the bad effects of bankruptcy
One reason that people file for bankruptcy is to establish an automatic stay that halts lawsuits and other collection actions. However, with a strong attorney by your side, you might be able to get the case against you settled or dismissed without having to resort to bankruptcy. Through skillful negotiation and effective litigation advocacy when necessary, our firm gives you the chance to lessen or eliminate what you owe without going to Bankruptcy Court. Moreover, once your matter is resolved, you can look to the future without having to worry how much longer it will take to remove a bankruptcy from your credit score.
Contact a Texas lawyer to talk about ways to avoid bankruptcy in a free consultation about
Tom Thomas Legal, P.C. advises Texans who are struggling with debt but looking to avoid bankruptcy. To schedule a free initial consultation with a proven debt relief attorney, please call 855-898-3328 or contact us online. Our offices are in Dallas, Houston, Austin, San Antonio, El Paso and Fort Worth.