How Do I Know If a San Antonio Bankruptcy Is Right For Me?

by San Antonio Attorney

People who file bankruptcy are ordinary people who are facing a financial crisis of some kind; often it is an entirely unanticipated crisis. After all, that is what the word crisis implies. So, if that description loosely fits you, you may be advised to file bankruptcy.

Of course it is not that easy or simple. There are different kinds of bankruptcy, some of which are more suitable than others depending on your circumstances. Take some time to consider what your particular problem is, but not too much time. When bankruptcy is impending, it is possible to make your financial situation worse by delaying taking action.

It is easy to understand why people delay, but do not procrastinate until the car has been repossessed and sold out from under you, or you have missed several mortgage payments.  If someone has a lien on your property, you need to keep them on the drip feed financially speaking, and sorting out any serious consumer debt through filing bankruptcy makes this possible.

The Bankruptcy Code regulates what can and cannot be done in terms of bankruptcy and is meant to ease the burden of debt and allow the individual to make a fresh start. Some debts can be discharged and some cannot. Some property may be at risk and some not. These intricacies mean that the decision to file bankruptcy needs to be an informed one.

Chapter 7 bankruptcy is an option for people with more consumer debt than they can service on their income. It makes it possible for people to receive a discharge of consumer debts, such as credit card debt, which they could not possibly pay off.  Even though chapter 7 makes it possible for creditors to be paid through the liquidation of property there are exemptions, so there is no need to expect to lose everything and so lose none of their property.

Chapter 13 bankruptcy is for those who have the regular income to resolve the debt crisis with the help of the provisions of the bankruptcy code. There may be some discharge of unsecured debts, but there will also be a plan created to assist the debtor to manage repayments and get their life going again.

True, it is not possible to get relief from debts such as mortgages or other loans where property has been used to secure the debt. But, the financial relief that comes through the discharge and/or restructuring of debts will mean that any income can be apportioned sensibly on secured loans making sure that property such as a house and car is retained, but only if action is taken in time to arrest the downward spiral debt can cause.

Consider talking to a bankruptcy lawyer about the options if any of the following apply:

  1. Bill collector harassment either by phone, mail or personal appearance
  2. Credit card debt so vast even making minimum payment is not possible
  3. Massive or unexpected medical expenses
  4. Inability to meet car or mortgage payments
  5. Anxiety due to the debt situation

It is to help with debt of this magnitude or unexpectedness that bankruptcy exists. In addition, once you file, the harassment must stop, and an attorney can assist if this does not happen.

If any of this resonates with you, make an appointment to discuss it with a San Antonio bankruptcy lawyer today. The first consultation should be free.

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