Bankruptcy is a common solution to debt problems but simply filing for protection from the court will not solve all of your problems. It is important to know what Filing Bankruptcy in Jacksonville TX can and cannot do for you before you file. An attorney can explain the process to you and may answer all of your questions before filing the paperwork with the court.
Before you can file, you must meet with a credit counselor to discuss your options. The rules allow you to do this in person, over the Internet or over the phone. The credit counselor will examine your financial situation and help you determine if Filing Bankruptcy in Jacksonville TX is the best choice for you. If there is a better alternative, the counselor may officially recommend it and the judge will take it into consideration.
Chapter 7 and Chapter 13 personal bankruptcy are very different and the best one for you will depend on the types of debts you have and the assets you own. If you use Chapter 7 when Filing Bankruptcy in Jacksonville TX, you may have to give up some of your personal assets. A lawyer may explain how exemptions work and let you know if you would have to forfeit any of your property to the trustee. Another disadvantage of Chapter 7 is that you cannot include family debts or student loans.
By going with Chapter 13 instead, you can keep your assets but you’ll have to repay your debts. The advantage of Filing Bankruptcy in Jacksonville TX under Chapter 13 is that your payment plan will be based on your ability to pay. After three or five years, the unsecured debts that haven’t been repaid through the agreement may be discharged in the same way debts are in a Chapter 7 bankruptcy.
Both options can give you relief from debt in different ways. Your attorney or credit counselor may explain other ways to reduce your debt without going through the courts. While bankruptcy offers debt relief, it will also appear as a public record on your credit report and make it more difficult to get credit in the future.