When Bankruptcy Isn’t the Solution, it Usually Still Is
For years, my offices have seen thousands of Texas families come through the doors, often not until they’re exhausted and feel as though there’s no other way out of a financial problem that’s ruled their lives for months and sometimes even years. The clients have filed a successful bankruptcy filing case allowed them to start anew. Many clients stated that they thought bankruptcy would not be the best solution for them, but after the filing realized that it actually was an appropriate way to discharge debt they could not pay in the foreseeable future (or ever) and receive a financial fresh start.
You may have heard about the 2005 changes in bankruptcy law. Before you file for bankruptcy, you must now do an on-line credit counseling session. You must also participate in debtor education after your case is filed. However, our clients do their credit counseling quickly, on-line before their case is filed. All of our clients fulfill the debtor education requirement by watching a great presentation (either on-line or by DVD) written by Dave Ramsey. Dave is an amazing individual. He filed a bankruptcy case himself and therefore has a unique approach to dealing with life after a bankruptcy filing. My clients all absolutely love the Dave Ramsey presentation and ask that their children and friends also watch it.
Debts Not Eligible
Here are the debts that are not discharged when you file a bankruptcy case:
- Child Support
- Debts that are incurred after you file the bankruptcy case
- Debts from personal injury while driving intoxicated
- Student loans
- Some taxes – however, many times taxes are dischargeable or the debt can be reduced or interest reduced to 4%.
Also, if any of your loans have a co-signer, you should know that your bankruptcy filing will not discharge the co-signer from the loan unless the co-signer also files a bankruptcy case.
Bankruptcy is Still a Solution
Before you decide bankruptcy isn’t an option after all, you should consider the total picture. Let’s say this is your scenario:
- $19,000 credit card debt
- $6,900 medical debt
- $14,000 outstanding balance on your car
- $1,200 signature loan from the bank
- $1,130 arrears on child support
You can eliminate all of that debt, except for the child support. This means you’re freeing up a good portion of your income each month so that you can focus on paying down those debts that can be discharged in your bankruptcy case. After your bankruptcy case is filed, you can also pay off so-signed debt if you want to make sure that the co-signer isn’t required to pay that debt. Not only that, but we have helped literally hundreds of our clients discharge their car loan and obtain a new vehicle. It’s all about starting new. It’s about wiping the slate clean and picking up the pieces without the stress of financial problems.
To learn more about how you can move forward with a better future with a fresh financial start, we invite you to contact our offices today. My staff is friendly, knowledgeable and committed. They’ll schedule you a free one hour consultation and we can explore your options – many of which you may not even know you had.