When is bankruptcy the right thing to do?

Deciding whether or not to file bankruptcy is probably the most crucial decision you need to make when you're experiencing financial problems.

Bankruptcy may be right for you if:
• You have so much debt that you will never be able to pay it off.
• You have bill collectors calling you day and night, and you just need them to stop.
• You have a lawsuit against you, and you can't afford to resolve the lawsuit and still pay      your other debts.
• You are behind on your car loan and facing repossession.
• You are behind on your mortgage and facing foreclosure.
• You owe past due property taxes, and you can't afford to pay you past due taxes and       still pay your current debts.

Bankruptcy process and timeline:
• Gather all required documents such as tax returns, check stubs and bank statements.
• Take a required credit counseling class. You can take the class online or by phone. For       most people, it takes 30 minutes to an hour.
• Meet with the attorney to sign your bankruptcy papers. Your case can be filed the same day you meet with the attorney.
• Go to court for a 5-minute meeting about 30 days after your case is filed.
• Take a second credit class called a financial management course online or by phone.
• You receive a discharge order in the mail 2-3 months after your court meeting.
• That's it. Your case is over. You can now get on with your life, debt-free.

Filing Bankruptcy in a Nutshell:
• You can get a case filed tomorrow if you want. And your case is over with about 4             months after it is filed.

Caveats about filing bankruptcy:
• You must qualify, based on your income, to file bankruptcy.
• Some people (less than 1% in Texas) have to turn over some of their assets to the             bankruptcy court (the "Trustee") to satisfy their debts.
• Bankruptcy can stay on your credit report for 7-10 years from the date it is filed.
• If you have filed bankruptcy before, you may have limited rights in a new case.

Get a bankruptcy consultation for free:
• If you have questions about the benefits, downsides, costs, or procedures for filing bankruptcy, meet with one of us. It won't cost you anything, and you'll know where you stand when you leave.

What will bankruptcy do to my credit?
If you're like most people thinking about filing bankruptcy, one of your biggest concerns is what the bankruptcy will do to your credit. The truth is: it's not nearly as bad as you think. Let's deal with a few common beliefs about bankruptcy and credit: