Bankruptcy is the determination of the debts one has and whether or not to discharge them. While the result immediately grants legal freedom from paying those accumulated bills, other consequences come with filing for bankruptcy in Dallas, TX. While it may help your situation, it also may hurt it; those who are considering filing for bankruptcy should seek the advice of a professional to determine the outcome of filing. There are four aspects to bankruptcy that those filing should keep in mind:
- It affects your credit score. Having a high credit score will show creditors that you can purchase big-ticket items and pay them off. Having a history of bankruptcy will affect your credit score and make it harder to buy things such as a car, home, or even a new stove for your home. While you will not have outstanding bills to pay, you may not be eligible to acquire the new things you want. Having a lawyer understand your situation can help you determine how to live with your lower credit score.
- It will follow you for years. Filing for bankruptcy does not stop after the declaration – it stays on your credit report for a minimum of seven years. If you are considering purchasing something large that would require a loan or mortgage, realize that your credit report will not look clean for a long time. If you are considering something like acquiring a new credit card, you may not be able to do this for years as you wait for your credit report to improve unless you have professional help.
- Bankruptcy costs money. Though you are working to eliminate the bills you own, it costs money to file for bankruptcy in Dallas. If you hire someone to help you file, you must pay the attorney fees that come with that assistance. Whether or not you have a lawyer, you need to pay filing fees. This fee, though, may be worth it when it comes to the recovery process after filing for bankruptcy.
- You may lose property. There are different subcategories of bankruptcy, and knowing which one works best for you will help you in your filing process. Applying for chapter 7 bankruptcy means that you may lose non-exempt property to repay certain debts, which may include a second car, home, or welfare. Filing for chapter 13 bankruptcy will allow you to keep your home, but this option is only for those whose debt does not exceed a certain monetary amount.
While bankruptcy may be your best – or only – option, it is by no means a small decision. When filing for bankruptcy in Dallas, TX, let the professionals at Collins & Arnove help you determine your next best move for your financial future. For more information, call 972-516-4255 or visit their website at https://www.northtexasbankruptcy.com/.
Collings and Arnove | Bankruptcy Dallas TX | 972-516-4255