The many reasons to overcome any reluctance to file bankruptcy make this a relatively easy question to answer. When making the decision to file, it is worth considering what the intended outcome of the bankruptcy code is for the debtor, and that is to provide relief from debts that have become unmanageable so that the individual or company can begin life afresh.
A San Antonio bankruptcy option may be for you if you are facing any of these problems:
- Burdensome consumer debt
- Inability to make even the minimal credit card payment
- Burdensome or unexpected debt related to medical expenses
- Job loss
- Pending repossession of your car
- Imminent foreclosure on your home
- Harassment by creditors and bill collectors
Filing bankruptcy protects you from the misery of harassment by creditors from the time you file as a result of the automatic stay that is activated. This can prevent the loss of a car or house if the action is taken before transfer of ownership takes place. The outcome of a successful bankruptcy action, the discharge of some or all debt depending on individual circumstances, will be a future in which you once again have control of your finances and future.
Bankruptcy laws offer protection and relief; therefore, filing a San Antonio bankruptcy does not mean that you will be stripped of all your assets. Again, this depends on individual circumstances and the type of bankruptcy procedure, but you can anticipate keeping your house and car, exempt retirement funds, personal items, and work related apparatus at a minimum. To this end it is advisable to seek legal advice.
Chapter 7 is a San Antonio bankruptcy option predicated on the liquidation of non-exempt assets. However, this does not mean that you will lose everything. Secured debts, such as mortgaged property, are protected as long as you continue to make the payments. Filing and receiving a discharge of debts, presumably, makes this easier. Many people lose none of their property, so it is worth considering filing chapter 7 if you have the considerable amounts of debt or have suffered the loss of job and income.
If you are facing foreclosure on your home, the sooner you file the better. There is a point where it will be too late for bankruptcy to assist. Both chapter 7 and chapter 13 offer relief on potential foreclosures. Chapter 7, leading to a discharge of unsecured debts, allows for the redistribution of income from those old debts to the mortgage repayments.
Chapter 13 is a reorganization approach to debt management and offers various options for restructuring of debt to make repayment possible through the generation of a court approved repayment plan. This is an option for debtors with a regular income and is intended to provide for the retention of property and assets.
From the date of filing, the procedure for chapter 7 takes four months at which point you are free of the discharged debts. The procedure for chapter 13 is different; there will be a period of 3-5 years making repayments as per the court approved plan. Debts will be discharged in a chapter 13 only after all plan payments have been made.