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What Does Bankruptcy Mean?

Posted by Chris Peterson | Aug 10, 2014 | 0 Comments

What Does Bankruptcy Mean?

What Does Bankruptcy MeanBankruptcy is a word that has traditionally carried a stigma. For many, it suggests financial irresponsibility. However, especially in these economically depressed times, many people find themselves burdened with financial difficulties through no fault of their own. This is where a Bryan Texas bankruptcy attorney can help.

Is a Bankruptcy Really a “Fresh Start”?

High healthcare costs, unemployment, and other issues have led to a considerable rise in the number of individuals who find themselves having to declare bankruptcy. It is no mark of shame for a person who has worked hard all their lives but become saddled with a mountain of debt due to loss of job to file for bankruptcy protection. Your bankruptcy attorney can attest to the fact that most people who file are simply struggling to find a way to start over.

But does bankruptcy really provide a fresh start? It does, but not without certain loss. The downside of a bankruptcy, as your bankruptcy attorney will tell you, is that your credit rating will suffer as a result of filing. However, it is likely if you are considering bankruptcy that you already have late payments. Filing can result in dismissal of your debts, which can be a virtual lifesaver.

Keep in mind that not all debts are dischargeable. Student loans and unpaid child custody payments, for instance, cannot be eliminated.

What Type of Bankruptcy Am I Qualified for?

Most people file either a Chapter 7 total liquidation or Chapter 13 restructuring. The type you qualify for depends largely upon your income. If your yearly salary falls below the state mean, then you will be eligible for a Chapter 7.

Work with a Bryan Bankruptcy Attorney if You Need to File Bankruptcy

The bankruptcy process can be quite complex, and there are many steps you must complete correctly. You will find it in your best interests to hire a Bryan TX bankruptcy attorney if you plan to file. Call Peterson Law Group today to arrange an initial meeting at 979-703-7014.

About the Author

Chris Peterson

Chris Peterson is the owner of Peterson Law Group. He practices primarily in the areas of wills, trusts and estate planning; probate and trust administration; elder law; and business law. Chris is also the owner of Brazos 1031 Exchange Company.


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