For whatever reason, you are no longer able to meet your financial obligations as you once were. Now, you have creditors calling you, sending you letters and making threats or following through with legal action. More than likely, you have tried everything you can think of to deal with your financial situation, but to no avail. Like other Texas residents, you probably did not automatically consider filing for Chapter 7 bankruptcy as a debt relief option, even though it could be your best option.
Upon filing a bankruptcy petition, an automatic stay goes into effect that prevents your creditors from continuing their debt collection efforts. When creditors call you for your daily dose of harassment, you can tell them you have filed for bankruptcy and give them your case number. They can no longer contact you during the course of your bankruptcy.
If you own a vehicle for which you have not been able to make payments, your lender cannot repossess it during the bankruptcy unless you voluntarily surrender it. If your mortgage lender has threatened foreclosure, it cannot move forward without the permission of the bankruptcy court. Garnishments must stop as well. The U.S. Bankruptcy Code not only gives you relief from your debts, but relief from the chaos you find yourself in prior to filing. It gives you time to breathe and figure out how to correct your financial woes.
Many Texas consumers attempt to avoid Chapter 7 bankruptcy for a variety of reasons. They may not feel the time is right, have a moral objection to it or do not think that their debts are "big" enough to file. The only way to dispel any doubts and gain a clearer understanding of the process is by discussing the situation with a bankruptcy attorney.