It can be very difficult to decide that bankruptcy is the right decision for you in your specific financial situation. However, there’s no denying that there are some advantages to filing for Chapter 7 bankruptcy in Montgomery County, TX when you get overloaded with debt to the point that every bill is a new hardship.
Here are just a few examples of some of those advantages you should consider as you ponder whether filing for bankruptcy is the best decision for you:
- Efficient process: The time it takes for you to complete the entire bankruptcy process, from your filing date to your debt discharge, is only about three to six months. This means that once you make the decision that filing for bankruptcy is the right move for you, it is over relatively quickly, at which point you’ll be able to get relief from all the bills you’re piled under. It may take years for the bankruptcy to come off your record, but the sooner you begin, the sooner you can work on repairing your unavoidable credit hit.
- Exemptions: Most of the state exemptions available in Chapter 7 bankruptcy allow you to hold on to enough that a significant portion of the items you own will be exempted from the bankruptcy process. Plus, you get to keep any income you earn or property you purchase after you file for Chapter 7.
- Options: You have additional options if Chapter 7 doesn’t completely cure your situation. You’re only able to file Chapter 7 bankruptcy once every six years, but you still have the potential to file a Chapter 13 bankruptcy repayment plan if you experience another financial disaster before you’re eligible to file for Chapter 7 again. In fact, you can file for Chapter 13 repeatedly, though you do need to be conscious about what that does to your credit record.
- Stop creditor harassment: One of the biggest benefits associated with Chapter 7 bankruptcy is that it will prevent your creditors from continuing to harass you with aggressive collection actions. They’ll no longer be able to call you or any of your family members, whether you’re at home or work, or send you any threatening mail or digital communications. There’s an automatic stay put in place when you file for bankruptcy, and violating that stay could result in your creditors being punished by the government.
- Rebuild your credit: As previously mentioned, you cannot escape the fact that you’re going to take a big hit to your credit rating after you file for bankruptcy. However, many people find that they’re able to rebuild their credit significantly faster after filing for bankruptcy than they would have been had they attempted to weather the storm. It does have to get worse before it gets better, but you do come out of bankruptcy with a clean slate, so to speak. As long as you are financially responsible moving forward, which includes paying bills on time and being responsible with credit, then you’ll slowly but surely built up a reliable credit rating once again over the course of the coming years.
For more information about the biggest benefits associated with filing for Chapter 7 bankruptcy in Montgomery County, TX, we encourage you to contact James R. Jones, Attorney at Law. We’d be happy to answer any questions you have about the filing process.