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Unlike most bankruptcy firms in the Dallas / Fort-Worth area, Allmand Law Firm, PLLC spends the time to understand the complete financial picture for every one of our clients. We provide resources, tools and advice to address the unique needs of North Texans.

What's Holding You Back From Filing For Bankruptcy?

Posted By Allmand Law Firm, PLLC || 6-Feb-2017

You're getting squeezed by your debtors. There's not an hour that goes by when you don't receive harassing phone calls from collections agencies. Every time you open your mailbox, you are met by a cascade of final demands and urgent notice letters, all of which document exactly how much you owe and to whom.

If this sounds familiar, we only have one question to ask you: What is holding you back from filing for bankruptcy?

Common Reasons People Are Scared to File Bankruptcy

Below, we have listed many misconceptions about Chapter 7 and Chapter 13 bankruptcies:

Bankruptcy Will Hurt My Finances

Credit card bills, medical debts, and other loan demands are more likely to hurt your finances as they are designed to have you pay off as little as possible over a maximum time period (that's how creditors make their money!). That means without bankruptcy, you will always be struggling with poor credit. With bankruptcy, you can immediately eliminate the old debt and start fresh. So which seems better: a lifelong struggle with bills, or just a couple of years rebuilding a great credit score?

Bankruptcy will Ruin My Credit For a Decade

Not likely. While there's no denying that getting a loan or credit card after bankruptcy will be harder, think of it this way: what is the likelihood of you getting a loan or credit card now? Besides, with regular payments on your utilities, mortgage/rent, and other debts, your credit rating will bounce back a lot faster. Some individuals even report getting credit card offers and loan approvals within a couple of years after filing for personal bankruptcy.

I'll Lose My Home

In personal bankruptcies (like Chapter 7 ) where your assets are sold to pay your debts, there is a possibility that your home will be used. However, stronger federal exemptions have made this less likely. Additionally, if you file for a Chapter 13 bankruptcy, you won't lose your home at all.

Now that we've addressed your misconceptions about bankruptcy, ask yourself this: why haven't you met with a bankruptcy attorney? Our team of Dallas bankruptcy lawyers at Allmand Law Firm, PLLC can fight for your rights and future. Call us today!

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