When Texas residents feel that the time has come to face their financial struggles, it can be frightening. However, individuals should feel proud that they are willing to address their problems rather than allowing them to get worse. For some, Chapter 13 bankruptcy may be the avenue that helps them get back on track with their finances.
When considering bankruptcy, it is important to know about the different types for consumers. With Chapter 13, qualifying individuals generally have the ability to generate an income, and rather than liquidating assets, a repayment plan is used that allows parties to address their outstanding balances over the course of three to five years. Some people may want to put off following this route, but in reality, taking action sooner rather than later may help avoid additional difficulties.
It is also common for parties to think that bankruptcy will put them in a position where they can never obtain a loan or rebuild their credit scores. Fortunately, that is not the case. There are multiple ways in which individuals could rebuild credit after bankruptcy, such as utilizing bank programs aimed at building credit and making monthly payments on small loans.
If Texas residents feel uncertain or anxious about potentially applying for Chapter 13 bankruptcy, it may help them feel more at ease to know that they do not have to face the process alone. Bankruptcy attorneys specialize in this area of law and could provide useful information and assistance to interested parties. Obtaining reliable facts about this method of debt relief could allow individuals to understand its benefits more clearly.
Source: thestreet.com, "Back on Track: Recovering From Bankruptcy", Brian O'Connell, March 22, 2018