When finances are out of control and no amount of budgeting or changing spending habits makes a dent, the only alternative is to talk to an attorney about filing for bankruptcy in Arlington, TX. While the idea of doing so is not all that appealing, taking this course of action may be the best hope for a better future. Here is what the debtor can expect once the bankruptcy is filed.
Impact on Credit Ratings
There’s a good chance that the credit rating of the debtor has already taken a hit prior to filing for bankruptcy in Arlington, TX. Even so, expect that in the months following the filing the credit rating will decrease even more. Whether the filing involves a chapter 7 or a chapter 13 bankruptcy, the day will come when the credit rating begins to level off and starts to increase once more. Even with the latter type of bankruptcy, the client is likely to have a more favorable rating by the time the commitment to the court is fulfilled and the bankruptcy is discharged.
Living on a Cash Basis
For people who are used to rely on credit, learning how to live on a cash basis can take some doing. As part of the court’s requirements for accepting the bankruptcy petition, the client successfully completed courses in financial management. Now is the time to put what was learned in those classes to good use.
While it will be rough at first, staying within the budget will be a little easier each month. By the end of the first year, the satisfaction that comes from making ends meet without using credit will make the effort worth it.
Acquiring New Debt
Chapter 13 filers should remember new debt should only be acquired with the express permission of the court. If the family car dies or a medical emergency arises, contact the trustee immediately. In many cases, allowances can be made for any serious situations.
For anyone who thinks that bankruptcy may be the best option, visit to our website today to arrange a consultation. Together, it is possible to determine what type of personal bankruptcy the client can file, go over the pros and cons, and come up with a solution that is in the best interests of the client.
