Debtors in Texas and throughout the nation could use bankruptcy as a way to obtain financial relief. However, it should generally be used as a final option when there are no other ways to repay balances owed to creditors. It is important to note that bankruptcy does not eliminate every type of debt that a person could have. For instance, it generally won't take care of taxes owed or back child support payments.
Chapter 7 and Chapter 13 bankruptcy are the two most common types an individual can file for. A Chapter 7 case makes it easier to get rid of eligible debts faster while Chapter 13 cases involve a debtor making payments over a course of several years. Filing for bankruptcy can have an adverse impact on a person's credit score regardless of what type of protection a person seeks.