Many people in Houston are struggling with debts. Some of these individuals may find themselves stressing over how to pay their car notes, mortgages and household expenses each month. As stressful as it is dealing with debt and not knowing where your next dollar may come from, there is hope in the form of bankruptcy.
There is nothing wrong with considering bankruptcy as the solution to your financial problems. It is essential for you to understand that it can put an end to creditor harassment and give you some relief so that you can get your debts under control. It is not something that everyone qualifies for. Take some time to review the following myths about bankruptcy so you can better determine your next steps.
Both parties in a marriage must file
It may surprise married couples who have an interest in bankruptcy protection to learn that their spouses do not necessarily need to file. If one person in the marriage has debts he or she incurred before marriage, he or she may be eligible to file bankruptcy without his or her spouse. Keep in mind that if one spouse files to have joint debts restructured or discharged, the creditors may go after the other spouse for those debts.
Gives a pass for frivolous spending before filing
Some people may feel they can max out their credit cards and blow their money on needless things in the months before they file for bankruptcy. However, that kind of behavior constitutes fraud, which is unlawful and can result in penalties. Once a person files for bankruptcy, the courts will assess all their financial activities to determine their eligibility.
Many people who do not initially consider bankruptcy believe they should pay off their debts. This may be problematic for individuals who do not make enough money or are facing extenuating circumstances to do so. If you have more debt than you can reasonably pay off within three to five years, it may be more beneficial for you to file bankruptcy.