Bankruptcy can change your life for the better, but many hurt their chances of a successful bankruptcy by making mistakes. They make no plan. They don’t go over all their options. Some don’t do the research. There are many more points. This blog guide will help you file bankruptcy successfully.
Make a Plan
Are you eligible? What sort of income do you have coming in? Will you be able to keep your home? These are the kinds of questions you should ask yourself. It’s okay to be confused, to have questions, to have concerns, as long as you write them down and start taking some action. You should plan for how you will do things like keep your home and car. You should know what kind of income you might have coming in. If you lack an income, you might consider finding ways to get one, such as applying for benefits or for a job. You may not be able to do all the points in your plan, but making one gives you a boost of confidence.
Know Your Options
You have more options than you might think. Yes, you have Chapter 7 and Chapter 13 bankruptcy, but you have far more. You have options for protecting your Texas home from foreclosure, such as with the Homestead Exemption. You have exemptions on other assets too. You can choose what lawyer you hire. You can choose what debts you intend to pay, sometimes, and what debts you intend to discharge or let go.
Research is quite important in Texas bankruptcy. For example, the Texas Homestead Exemption has some unique rules, namely the fact only the lender has the right to take your home. There are eligibility rules for Chapter 7 and Chapter 13 bankruptcy unique to Texas. Also, all states are different in terms of what value your assets can be in bankruptcy.
Hire the Right Lawyer
If you are considering bankruptcy, you definitely need to consider hiring an experienced Texas bankruptcy lawyer. It’s his or her job to help you with questions, with your options, with research, and it’s your lawyer’s job to protect your rights. There are thousands of bankruptcy lawyers across the country and in the state of Texas, but not all are equal. Be picky here. Hire a lawyer with experience. Hire a lawyer you can communicate with. Hire one you can afford. And hire one who has the knowledge to help you.
Avoid Filing Second Time
The best way to avoid a second bankruptcy is to use your first one the right way. You should file at a time where it will have the most affect, being the time you owe the most money. If you have a large bill coming in, it’s obvious you want to wait for that to arrive before you file. You should also rebuild your credit in the right way after bankruptcy. There are many proven ways to do this. You should start paying all your bills early. You can rebuild credit by opening up a new credit card, such as a secured credit card, and making large purchases you can afford with it.
If you follow all the tips in this guide, you have an advantage over many who file Texas bankruptcy. The first step is to start considering legal representation. Then you’ll know your options.