Putting off filing for bankruptcy is a normal reaction. The process isn't easy and you probably have many fears and misgivings about taking what seems like a drastic step. But many of the things you hear from friends and relatives about entering bankruptcy simply aren't true. Take a look at some of the myths surrounding bankruptcy-and remember, they're just that. Myths.
There is no question that bankruptcy can have a negative impact on debtors’ credit scores. Once a bankruptcy is discharged, however, people are encouraged to begin rebuilding their credit scores. At The Law Office of Douglas J. Powell, PC, we know that one of the most common ways people can enhance their credit report is to obtain a credit card. However, there are some important things people should keep in mind when rebuilding their credit.
Student loan debt continues to climb, taking a bigger chunk of income as people try to get their finances back on track. Over 40 million Americans carried student loan debt in 2014, up from 29 million in 2008. It emphasizes the growing problem that faces citizens of all ages.
In addition to helping you emerge from your heavy financial expenses, the bankruptcy process has steps in place to help you learn money management skills. Whether you are filing for Chapter 7 or Chapter 13 in Texas, you are required to complete a credit counseling course at least 180 days prior to filing for bankruptcy, as well as a debtor education course after submitting your paperwork. A certificate for both courses is needed before your bankruptcy can be ultimately approved and your debts discharged. Once you choose a credit counseling course that has been approved by the Department of Justice’s U.S. Trustee Program, you may learn some useful information that you can use to better your overall situation.
When people become overwhelmed with credit card debt, medical expenses, mortgages and other excessive costs, they may choose to file for bankruptcy as a way to end their financial turmoil. Chapter 13 bankruptcy is just one option when it comes to filing for debt relief in Texas. However, Chapter 13 allows the debtor to organize a repayment plan that allows them to pay back all or a portion of their debt to creditors. According to U.S. Courts, debtors have three to five years to make payments to the reorganization plan, and at the end of the installments, they should be relatively debt free.
Whether you have already filed for bankruptcy or you are simply considering beginning the bankruptcy procedure, you might know what it is like to be inundated with harassing calls from creditors. Creditors in Texas and across the country often use a variety of measures to contact debtors in an attempt to retrieve owed funds. In addition to constant phone calls to your home, cellphone and work, you may get threatening letters in the mail. Ultimately, you may avoid answering your phone or stop getting the mail in order to bypass all of the negative creditor harassment.