Many people who have found themselves in financial ruin have exhausted all other options before resorting to bankruptcy. This might be considered noble or righteous behavior, but it is also unnecessary and can be dangerous. People can struggle to pay back debts for much longer than is necessary, and bring themselves to a financial point far beyond where bankruptcy would have left them. Contrary to the name, bankruptcy does not literally mean that a person has no money left, but rather that the repayment of all debts would make them unable to pay for basic living necessities.
If you have debts that far exceed your income, and even by selling all of your possessions you cannot pay back what you owe, don’t wait any longer before declaring bankruptcy. You will only let the debts grow larger, and in their attempts to get money, your lenders may take from you more than you can afford to give. A Texas bankruptcy court exists to make sure that does not happen.
By declaring bankruptcy early, you turn your finances over to the bankruptcy court and ask that they discharge the debts you are unable to pay. If you do this while you still have most of your assets, the court will protect those possessions from your lenders and you may find after the case has been settled that you are able to keep those assets. This doesn’t mean you should declare bankruptcy at the first sign of trouble, but rather that you should be careful to not let yourself reach rock bottom in your attempt to pay back the money you owe.