Chapter 7 is the most popular type of personal bankruptcy. That’s because, unlike chapter 13, those who use chapter 7 don’t have to repay their debts. Qualified debts may be discharged right away and people who were once in a lot of debt have the ability to get a fresh start. There are some downsides to filing chapter 7 bankruptcy in Fort Worth but, for most people, the advantages far outweigh the disadvantages.
For example, bankruptcy can have a significant negative effect on a person’s credit score. However, by the time an individual or couple are ready to file for federal debt relief, their credit score has typically fallen about as far as it can go. Late payments, collections and judgments can have a huge impact on credit scores. When they are that low, there’s nowhere for them to go but up. After filing for bankruptcy and getting unsecured debts discharged, many people are able to start rebuilding their credit right away.
Of course, major credit card companies and auto manufacturers typically will not extend credit to people who have recently filed chapter 7 bankruptcy in Fort Worth. There are several companies, though, that cater to the high-risk market and will offer credit cards and car financing to someone who recently filed for bankruptcy. These customers tend to be a better credit risk for them than those with a lot of unpaid bills because they have fewer monthly expenses than other people with similar credit scores.
Another disadvantage of filing for chapter 7 bankruptcy is that a person has to give up some assets. In many cases, people who are in serious financial trouble don’t have more assets than the bankruptcy court will let them keep. Since they don’t have this issue holding them back, there’s really no reason a person or married couple who is in serious financial trouble shouldn’t visit website and make an appointment to talk to a lawyer right away. Simply filing the paperwork with the court will stop all collection calls, garnishments, and late fees. It’s in a family’s best interest to learn about their options before it’s too late and they lose everything.
Connect with us on Google+!
