What is Bankruptcy?

bankruptcyA bankruptcy is often one of the final steps that a person or business will take once they reach a point where they know they cannot possibly pay back the money they owe, and they can also no longer keep up with their monthly payments.  Bankruptcy is a fairly common process and many people seek protection from having their assets seized or wages garnished by filing for bankruptcy.  While bankruptcy will protect your assets and keep your wages from being garnished there is a major downside to it as well.  Bankruptcy is very damaging to your credit and once you file it will usually be several years before your credit recovers.  While that may sound a bit intimidating, the truth is that it’s a far better option than being buried under a mountain of insurmountable debt.  Carrying a huge amount of debt will not only be stressful, it also impacts your credit in a negative way.  When you combine this with the impact that late and miss payments have, bankruptcy no longer is such a bad option for you to consider.

If you decide that you want to file bankruptcy it’s best to hire an attorney that specializes in this field.  There are many different types of bankruptcy that you can file, so choosing the right one is important.  It’s also important that you include all of the debt that you want to be relieved of, anything not inculded in your bankruptcy filing will likely be debt that you are still responsible for.  With all of the intricacies of the process, and the huge negative potential involved in making a mistake, hiring an attorney should be an obvious choice.

After you have filed bankruptcy you may feel depressed, but this isn’t the end of the world.  Bankruptcy filings are common, and the important thing is that you learn from your mistakes and fix them going forward.  Take a better accounting of your finances, and write a budget and stick to it.  When you are able start to get credit cards and other small loans and then make the payments on time.  You can rebuild your credit after bankruptcy if you are smart and responsible.  Once you have made the often difficult choice to file bankruptcy make sure that you do it the right way by hiring an experienced attorney to walk you through the process. If you have further questions ans would like to speak to a bankruptcy attorney in Houston, Texas then contact us at 713-750-9038.

How to Avoid Bankruptcy

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