The decision to file for chapter 7, chapter 11, or chapter 13 bankruptcy in McKinney, TX should not be taken lightly. There are many alternatives that do not have a lasting negative impact on credit scores, and these alternatives should be fully exhausted prior to deciding to file for bankruptcy. That being said, there are still plenty of reasons that it might be a good idea; read on to find out about just a few of them.
Avoid Foreclosure
Homeowners may find that they are able to save their homes from imminent foreclosure by choosing to file for bankruptcy. Depending on the terms of the agreement, they may be able to obtain loan modifications or even cure their mortgage arrears entirely. Filing either a chapter 11 or a chapter 13 bankruptcy also places an automatic stay on the foreclosure process, giving homeowners the time they need to get their finances in order.
Get a Fresh Start
Those who do not own homes still stand to benefit from filing for bankruptcy in McKinney, TX. Having their debts discharged allows those who choose to file for chapter 7 bankruptcy the opportunity to get a fresh start financially without having to pay off unsecured debts. Do keep in mind, however, that secured debts may still require continued payment.
Debt Restructuring
Chapter 13 and chapter 11 bankruptcies give those filing the opportunity to restructure some types of debts, often resulting in lower payments. This can help filers who have secured debts as well as unsecured debts to avoid the surrender of their properties.
Keep a Business
Business owners who file for chapter 13 or chapter 11 bankruptcy are often able to continue operating their businesses as either their sole proprietors or as part of corporations or limited liability companies while they restructure their debts. Of course, business owners should take some time to evaluate their business’s finances to determine why they are performing poorly in order to avoid future financial troubles.
Get Started Today
Are you interested in learning more about filing for bankruptcy? Contact the Law Firm of David S. Kohm for additional information, or call to schedule a consultation with a dedicated attorney today.
