3 Common Bankruptcy Questions

Bankruptcy has long had the stigma of being a last resort, and an admission of failure for a business. This is simply untrue. Bankruptcy is often a useful tool for climbing out of the financial holes that debt has left people in, helping them start a new chapter in their lives. If you need a fresh start, don’t be afraid to consider bankruptcy. Here are a few answers to the most common questions people ask about bankruptcy:

1. Will I lose my possessions? Bankruptcy exists so that people can have their debts cancelled before they sell everything they own in an attempt to pay off the debts. If you have a number of nonessential possessions that you have purchased since you’ve been in debt, then those items are likely to be taken and sold, but your car, home, and all of your clothes will likely remain yours.

2. What happens to my debts? If you have nonessential assets or possessions, they will be seized by the court and used to settle as many of your debts as possible. The rest will be discharged by the bankruptcy court and you will never have to pay them. The debt will disappear from your credit report, though your bankruptcy will be listed on your credit report for up to ten years.

3. Can I file for bankruptcy multiple times? You can only file for most types of bankruptcy one time in a specific number of years. This is to prevent you from taking advantage of the system.

Don’t be a victim of bad circumstances. If you are drowning in debt, consult with a Texas bankruptcy lawyer about your options.