When Chapter 13 Bankruptcy Is Not The Best Option For You

Obviously, filing for bankruptcy is the very last resort you can take to, but in some cases it can actually get you out of a lot of financial trouble. If you find yourself drowning in debt, relying on your credit card to pay for the daily expenses and when your wages will be soon garnished, you will know that it is high time you went to a dallas bankruptcy attorney and told him/her about your situation and of the idea of filing for bankruptcy.

Explaining your attorney everything abotu your finances and about your struggles with them will help him/her understand better what is it that needs to be done. In some cases, there will be other things than bankruptcy to do and this is when a Dallas bankruptcy specialist will not be able to help you much. However, if you both decide that declaring bankruptcy will be more advantageous, then you will want to know under which chapter you should be filing your bankruptcy.

If you have a regular income, your lawyer may advise you to file under Chapter 13 bankruptcy laws. According to these laws, your income will be calculated and a court will decide how much you should be giving towards your lender every month. In most of the cases, this will be a much smaller sum of money than that which you had to pay before filing for bankruptcy.

In othe cases though, Chapter 13 bankruptcy will simply not be a very good idea. For starters, if you have a low income not only will you not qualify for this chapter, but you may find it very difficult to deal with everyday expenses (especially if you used to rely on your credit card, which may become useless after declaring bankruptcy).

Another case in which Chapter 13 is simply a bad idea is when the long-term effects of paying debt under bankruptcy are actually worse than what you are struggling with at present and when you may end up paying much more than you originally had to.

A Dallas bankruptcy attorney will be able to advise you for the best and you will know which chapter of the bankruptcy laws is best for you. Generally speaking, individuals file under Chapter 7, Chapter 13, Chapter 11 or Chapter 12 and each of these sets of laws has different feature your lawyer will present you with, so that you can make the best decision for you and for your finances.