One of the most intense financial planning decisions a person can make is whether to file for bankruptcy. As with much of bankruptcy law, this process is complicated and can be emotionally and financially draining. There are also myths about bankruptcy that can make the decision even more complicated when an individual makes decisions based on false information. To cut through some of the confusion, hiring an experienced Midlothian bankruptcy lawyer is essential to getting the most accurate information and best possible outcome.
At Steele Law Firm, our Texas-based bankruptcy lawyers have decades of experience representing clients in many bankruptcies. While this may be your first time considering or filing for bankruptcy, it is not ours. We have seen every type of bankruptcy case and can draw on our past experience to set you up for the best financial chance at a successful outcome.
An individual or business can file different types of bankruptcy, each with its own set of rules and procedures. The most common types of bankruptcy are:
These three options are the most common types of bankruptcy, but other types can be filed in specific situations. It is highly suggested to consult with an experienced Midlothian bankruptcy lawyer to determine what type of bankruptcy is right for you.
There are many myths about bankruptcy that can prevent people from taking advantage of this legal process. Some of the most common myths are:
Myth: You will lose every possession you own if you file for bankruptcy.
Fact: This is not true. In a Chapter 7 bankruptcy, you can keep certain “exempt” property. This can include your home, car, clothing, and other necessities.
Myth: Bankruptcy will ruin your credit.
Fact: This is also not true. While bankruptcy does stay on your credit report for up to 10 years, it is possible to begin rebuilding credit right after filing. Sometimes having a long-term approach using the avenue of bankruptcy to repair your credit works better than trying to keep up with high monthly payments you cannot afford.
Myth: You can only file for bankruptcy once.
Fact: This is not the case. You have the right to file for bankruptcy more than one time, but certain time limits must be met. For example, you must wait eight years after filing a Chapter 7 bankruptcy before filing for another Chapter 7.
Myth: Only businesses can file for bankruptcy.
Fact: This is not true. Individuals, businesses, and even municipalities can file for bankruptcy. The most common bankruptcy filed by individuals is Chapter 7, while businesses often file for Chapter 11.
Myth: Bankruptcy will solve all of your financial problems.
Fact: While bankruptcy can provide much-needed relief from debt, it is not a “cure-all” for financial problems. You will still need to be careful with your spending and budgeting after you file for bankruptcy.
Myth: All debts are forgiven in bankruptcy.
Fact: This is not the case. While some debts can be discharged in bankruptcy, others cannot. For example, student loans, child support, and alimony cannot be discharged in bankruptcy.
If you might make the move to file for bankruptcy, it is important to speak with an experienced Midlothian bankruptcy attorney to dispel any myths you may have about the process.
There are many financial benefits to filing for bankruptcy in Midlothian, including:
These are just some of the frequently cited benefits of filing for bankruptcy that can help you get a fresh start financially.
If you are considering making the financial move to file for bankruptcy, speak with an experienced Midlothian, Texas bankruptcy lawyer. The right attorney can help you understand your options and determine if bankruptcy is right for you. At Steele Law Firm, we have helped countless clients navigate bankruptcy and get the fresh start they need. Contact us today to schedule a consultation and begin discussing your case.
We look forward to speaking with you and demonstrating how we may be able to help.