What to Expect in Life After Bankruptcy

Life After Bankruptcy in Tarrant County, TX

Despite the overwhelming stress and financial challenges of taking care of your family when buried under a massive debt load, many people elect not to seek bankruptcy relief for a variety of reasons. Some people assume they cannot qualify for bankruptcy relief while others fear the consequences or possess concerns about the moral status of avoiding financial obligations.

Bankruptcy might not be the right debt relief alternative for everyone, but more than one million people use the bankruptcy process in the United States to reclaim their financial future each year. At Acker Warren P.C., our skilled and compassionate bankruptcy lawyers are here to help you address your concerns about filing for bankruptcy and what life will look like after bankruptcy.

What Are the Consequences of Filing for Bankruptcy?

Bankruptcy is a powerful legal tool because it can wipe out tens of thousands or even hundreds of thousands of dollars in unsecured debt. Even so, there are legitimate adverse consequences that debtors must consider before filing for bankruptcy relief.

Impact on Credit Rating

A bankruptcy discharge can remain on your credit report for up to ten years. However, this negative short-term impact is often trumped by the long-term impact of a bankruptcy discharge. Because the bulk of your unsecured debts typically will be extinguished, your income-to-debt ratio improves immediately. Soon after filing for bankruptcy, you will probably have creditors approach you with "secured credit cards" and often traditional unsecured credit cards albeit at a high interest and likely with an annual fee, or high-interest credit offerings. If you are careful about making timely payments on these credit alternatives, you will start to see offers for unsecured credit cards with more customary interest rates.

Concerns About Employment Applications

This is a concern that has become increasingly relevant because a growing number of companies now run background and credit checks on job applicants. While a bankruptcy might be viewed negatively shortly after it appears on your credit report, it likely will not have any more impact than a credit report full of delinquent accounts and write-offs. If you obtain a bankruptcy discharge, you can build a positive post-bankruptcy credit history that shows a record of timely payments.

Morality of "Dodging" Financial Obligations

Some debtors may be uncomfortable with the moral implications of avoiding payment of legitimate financial obligations. However, many people forced into bankruptcy have limited control over their situation. Examples of reasons that some debtors file bankruptcy include:

• Overwhelming medical bills from a serious illness or injury
• Job loss due to a downturn in the economy
• Business failure
• Family tragedy, such as the death of or catastrophic injury to a breadwinner

These are situations that confront some of the most successful and responsible people throughout the country. Bankruptcy is deeply rooted in our founding documents as envisioned by those who embodied the moral principles upon which our country was established. Despite the legacy of bankruptcy protection in U.S. history and our founding principles, you can always file Chapter 13 bankruptcy and repay your debts over a longer period of time if you still have moral concerns.

Why Bankruptcy Is Worth the Potential Consequences

Unless you desire to be a "financial martyr" suffering forever because of a period of inadvisable financial decisions or unforeseen circumstances, the benefits of bankruptcy are too significant to ignore. If you file bankruptcy, you can experience some or all of the following benefits:

• Keep your assets because your assets qualify under the generous exemption laws in Texas. Almost all Chapter 7 cases in Texas are "no-asset" cases.
• Relief from most unsecured debts or the ability to repay such debts over a three year-to five-year period.
• Injunction against most debt enforcement, such as repossession, foreclosure, lawsuits, wage garnishment and harassing phone calls or letters.
• Participation in credit counseling to avoid future problems.

Contact Our Firm to Get Started Today

The team at Acker Warren P.C. recognizes that filing bankruptcy is a big and potentially scary step for many consumers. However, millions of people like you wake up in the morning without the fear of being served with a lawsuit or having their car repossessed because they obtained bankruptcy relief. If you have questions about bankruptcy, we invite you to contact our office and schedule a free consultation. Call 817-752-9033 for an appointment today.