Another look at Chapter 7 bankruptcy

On Behalf of | May 12, 2015 | Chapter 7 Bankruptcy |

Many people living in Texas struggle with high levels of debt. These individuals may seek various types of debt relief, including credit counseling, debt settlement and other types of repayment plans. While these efforts sometimes work, many people find that filing for Chapter 7 bankruptcy is a good option. More importantly, some individuals realize that filing for bankruptcy is something that they should have done sooner rather than later.

Many consumers struggle to eliminate debt without filing for bankruptcy. Unfortunately, doing this is not always easy. High interest rates and fees can grow exponentially even as an individual continues to make payments. Even more concerning is that while that person continues to repay debt, they are not saving or investing money that could be used to secure their financial future.

In addition to considering long-term financial recovery, consumers may also want to consider the short-term advantages of Chapter 7 bankruptcy. When an individual files for bankruptcy, the automatic stay goes into effect. This prevents creditor harassment, which can have a significant positive effect on the individual’s stress level. In addition, the cost of filing for bankruptcy is often far less than what the individual might be paying in interest on a consolidation or settlement plan.

Individuals who are overwhelmed by debt may benefit by seeking a consultation with an experienced lawyer. An attorney may be able to review the client’s financial situation and make recommendations regarding the advisability of filing for bankruptcy. In addition, the attorney may be able to assist in protecting the clients exempt assets, making financial recovery and easier process.