If you are struggling with overwhelming debt, you may feel you have no options left. Like many Americans, you may think of bankruptcy as a last-resort option that will mean losing your home, your car and any chance of rebuilding your credit.
However, state and federal bankruptcy laws offer important protections for those filing. Far from losing everything, applying for either Chapter 7 or Chapter 13 bankruptcy may help you gain the fresh financial start you need.
Myth 1: You will lose everything you own
When filing for bankruptcy, Texas exemptions may protect most or even all of the personal property you wish to keep. In addition to items like jewelry and furniture, this may include your vehicle, professional tools and equity in your home.
Myth 2: Your credit score will never recover
Filing for bankruptcy may have an immediate impact on your credit score. However, a Chapter 7 or Chapter 13 bankruptcy only remains on your credit report for a certain number of years, and you may be able to begin rebuilding your credit even sooner.
Myth 3: Filing for bankruptcy is irresponsible
Federal and Texas state bankruptcy laws exist for a reason; to help Americans who need financial relief get back on their feet. Far from a financial failure, bankruptcy may be the financial tool you need to plan a better path forward.
From constantly struggling to pay the bills to facing daily creditor harassment, living with overwhelming debt can feel hopeless. Instead of falling further behind, know that filing for bankruptcy may provide you with immediate relief from creditors and a chance to put your life back together.