Will A Debt Protection Program Keep Me from Filing Bankruptcy

POSTED BY admin@texas ON THIS September 22, 2022 AT 10:52 am

Are you drowning in debt and dealing with harassment from creditors every night during dinner? If so, we understand that the prospect of filing for bankruptcy can seem like the best way to get a fresh start.

Depending on the type of bankruptcy you file in Texas, your debt may be forgiven, and you might even be able to keep some of your assets. Further, there are several tactics that a debt resolution attorney can use to your advantage, such as fighting for your student loan to be discharged or fighting for your rights if a creditor commits stay or discharge violations. However, the process can be incredibly complicated, with several nuances and pitfalls.

Working with a debt resolution attorney or bankruptcy attorney can help ensure that the filing process for bankruptcy runs smoothly. Daniel Ciment of Ciment Law Firm, PLLC, is an experienced debt resolution attorney who developed a highly successful debt protection program to help his clients break free from debt and begin anew. In this article, he explains some critical things to know when considering bankruptcy in Texas.

The Pros And Cons Of Filing For Bankruptcy In Texas

If you’re on the fence about whether filing for bankruptcy is the best solution for your situation, this list of pros and cons could point you in the right direction.

Benefits of Filing for Bankruptcy

  • Some or all of your debts could be erased
  • Creditors will stop contacting (harassing) you
  • You can usually keep your car, tools of your trade, and educational materials
  • Government pensions, retirement benefits, public benefits, insurance, etc. are exempt, meaning you can keep them
  • Homesteads up to a specific acreage are also exempt
  • You can stop foreclosure proceedings and get caught up on mortgage payments
  • Wage garnishment stops
  • Employers cannot discriminate against candidates who have filed for bankruptcy

Benefits of Filing for Bankruptcy

1. Lying about your finances: As you prepare to file for bankruptcy, you’ll need to get your financial information together to give to your bankruptcy attorney. This includes an inventory of your income, debt, assets, financial transactions, and more. If you attempt to exclude information, your bankruptcy case could be dismissed.

2. Hiding assets: People think they’re clever when they “gift” cash, property, and other assets to friends and family members to avoid having them taken and liquidated to pay creditors. These transactions will be an instant red flag, and they often result in the debtor losing these assets permanently when, in fact, they might have had the opportunity to preserve them.

3. Going on a shopping spree: If you know your debt will be erased, why not max out the credit cards and treat yourself to luxury goods and exotic vacations? Tempting as that sounds, unusual and excessive spending could thwart your goal of erasing credit card debt. Further, most credit card companies will not waive the 90 days of charges that occurred before your filing date.

4. Not working with a bankruptcy attorney:Bankruptcy is a complicated process. First, you must determine if Chapter 7 or 13 is best for you. Because each option has its advantages and disadvantages, an experienced law firm can guide you in best practices that allow you to walk away with more of your assets – legally.

5. Repeating the same behaviors: Having all or most of your debt forgiven can feel like the weight of the world has been lifted off your shoulders. However, you must adopt responsible financial habits after surviving a bankruptcy. Seeking credit counseling, formulating a budget, and learning how to live within your means can help to secure your financial future.


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