Before you file for bankruptcy in Texas, you need to understand what it means to file for bankruptcy. With so many myths surrounding bankruptcy, many people opt out when it could be their best option. Nerdwallet explains that there are many different myths that surround bankruptcy.
Some shy away from bankruptcy, in fear that they will lose everything. You may believe that to file for bankruptcy means that you have to lose your home, your car and all of your assets. The truth is that you will likely be able to retain most of your possessions. On one hand, you can keep basic assets. On the other, most people do not have high value possessions. Creditors are not interested in your appliances or electronics. If you own luxury cars or designer clothing, however, those may be subject to auction.
Others fear that to file for bankruptcy means that they failed. The truth is that most bankruptcies occur due to medical debts that are beyond a person’s control. It does not matter why you file for bankruptcy. In some instances, bankruptcy can be an appropriate tool to control your debt. Do not worry about bankruptcy destroying your financial future either. You may have limited access to credit cards for seven to 10 years, but your credit score does rebound.
Some might believe that paying off the debt is better. In some instances, it is. If your debt is over half of your income, however, and if you do not see yourself rising out of debt in five years or less, then you may need bankruptcy.
The above is not intended to be legal advice. It is for educational purposes only.