The Law Office of Douglas J. Powell, P.C.
Helping Clients Throughout The Austin Metro Area

What you should know about bankruptcy

Are finances becoming a struggle for you? Have you fallen behind on your mortgage? Do you have significant credit card of medical debt? If you are having trouble making ends meet, you are probably under a great deal of stress. You want to know what you can do to improve your financial situation.

Filing for bankruptcy is one way that you can change things for the better. Bankruptcy provides a fresh start by eliminating your dischargeable debts. This posting discusses some of the things that you need to know about bankruptcy, so that you know what to expect after you file for Chapter 7 or Chapter 13 protection. 

Deciding if bankruptcy is right for you

This is perhaps the most difficult part of the process for individuals. You must ask yourself if you are in a situation that will continue to spiral out of control. If you cannot see a path to financial freedom, it might be time to seriously consider bankruptcy as an option.

But, how do you know when you are in over your head? Well, take a close look at your money problems. Do you owe more money per month than you bring in? Are you just making the minimum payments on credit card or other bills? Are you trapped in an underwater mortgage? If the answer to any of these questions is yes, it is time to seek assistance.

Understand how bankruptcy will impact your debt

There are expenses that a bankruptcy proceeding will not eliminate. Child support, alimony and student loans will still remain as your responsibility. Creditors such as credit card companies can fight the bankruptcy and ask for their money, slowing down the process and possibly causing you more harm in the long run.

Make sure you work with a professional throughout the process

When you have decided that bankruptcy appears to be the only way out of your money problems, you should contact an attorney who is experienced in these kinds of proceedings for support and information that can help protect your interests and future.

An attorney will be able to help you prepare a plan that meets your specific needs, allowing you to emerge from the process in a more stable financial position. If you try to file on your own, you may not realize all of the advantages that are available to you, and you could make mistakes that severely threaten your ability to recover from your debt problems. 

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