The Bankruptcy Attorneys at Rubin & Associates P.C. understand the stress experienced by individuals in the Dallas Fort Worth area who are struggling with debt. Our goal as Bankruptcy Lawyers is to find a solution to relieve your financial stress.

1. Dallas Bankruptcy Lawyers,Fort Worth Bankruptcy-Mark Rubin Lawyer
Author : Jim Knight
The Bankruptcy Attorneys at Rubin & Associates P.C. understand the stress experienced by
individuals in the Dallas Fort Worth area who are struggling with debt. Our goal as Bankruptcy
Lawyers is to find a solution to relieve your financial stress.
Address
Dallas Frisco
13601 Preston Road, Suite 500E 2591 N. Dallas Parkway, Suite 300
Dallas, TX 75240 Frisco, TX 75034
(214) 760-7777 (214) 747-4004
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Bankruptcy Your Credit Score Down the Road
Bankruptcy is a proceeding in a federal court in which an insolvent debtor's assets are liquidated
and the debtor is relieved of further. It is classified into two categories, liquidation and
reorganization. There are four chapters in total which include from Chapter 7 to Chapter 13.
Chapter 7 of the Bankruptcy Reform Act stands for liquidation, whereas Chapter 11 deals with
reorganization. Bankruptcy is something which individuals try to avoid, as it devastates one’s
credit and stops the borrowing channel.
A lot of individuals think that paying off debts is a better option rather than filing for bankruptcy,
as it affects the emotional life of the concerned individual. A feeling of regret and failure envisages
the life of the individuals who file for bankruptcy, even several years after the filing. Before
considering filling for bankruptcy people should consider their options very carefully.
Firstly, the debtor should sit down with the creditor and settle a debt with them rather than filling
for bankruptcy. If the debtor is already a few months late on the payment the negotiation process
becomes much easier. If the debtor is lagging in making payments to the creditor on time, then
the creditor has no choice but to negotiate and bring the amount of debt payable per month
down, in order to recover the lion share of the money owed.
The debtor should turn to a consumer credit counselor if he is unsuccessful in negotiating with the
creditors. These professionals are capable of bringing down the interest rates and monthly
payments. They know very well about how to get the job done. Under the new bankruptcy
legislature, the debtor has to go through credit counseling, six months before filling for
bankruptcy. This is done so that the concerned individual may explore it as an alternative to
bankruptcy declaration.
Declaring bankruptcy also affects the credit score of an individual. In such cases most creditors
stop lending money. This is because of the severe risk of non payment that person represents
based on his or her past. Bankruptcy lowers the credit score of an individual by a full 100 points,
and sometimes even more. So initially, these are the risks involved. But eventually the degree of

2. risk mitigates with time.
If the creditor has got judgments against the debtor and has garnished that individual’s wages,
then declaring bankruptcy could stop the wage garnishment. By adopting this process, the debtor
might also get some help in retrieving the garnished money. If someone is not in possession of
any assets or the assets they own are worth very little compared to the debt they owe, then they
might consider filing for bankruptcy. Also, if the assets of the debtor are secured with a loan, then
he or she can file for bankruptcy in order to keep the assets such as a house or a car.
Every situation is unique in its own way. If the debtor is seriously considering, filling for
bankruptcy, then he or she should get in touch with a consumer law attorney to discuss their
bankruptcy options. Consumer law attorney’s are professionals who review the facts of the
concerned person’s situation and then help them decide whether or not filing bankruptcy is the
appropriate option for them.
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Five Rules of Bankruptcy
“Bankruptcy is a legal proceeding in which you put your money in your pants pocket and give your
coat to your creditors.”
- Joey Adams (1911-1999), American comedian, actor and
author.
Bankruptcy is one of the most difficult events one can ever face in one’s life. The inability to repay
one’s debts is a heavy cross to bear, and many suffer from the moral implications of filing for
bankruptcy. However, in many ways, it gives one a second chance to stand on his or her feet
again.
If you have been assailed by the ongoing recession and have decided to file for bankruptcy, you
need to be aware of the following five important rules of bankruptcy:
1. Know the difference between Chapter 7 and Chapter 13 bankruptcy
Chapters 7 and 13 of the US Bankruptcy Code are the most common forms of individual
bankruptcy filings. However, there is a lot of difference between them.
While the former is a liquidation process where all debts are discharged, the latter is a
reorganization of debt with a specified repayment plan. Also, under Chapter 7, only some property
can be kept while the rest is liquidated, but under Chapter 13, most of the property can be
retained as long as regular repayments are made. Additionally, a Chapter 7 bankruptcy remains
longer in the credit report (10 years) as compared to one filed under Chapter 13 (7 years).
In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) was passed to
make Chapter 7 filings more difficult to reduce abuse of the provision. Now, the debtor's income is
calculated and then the resultant figure is compared to the median income of the state where he
or she resides. Only if the debtor's household income falls below the median income for the state
does the debtor qualify to file for Chapter 7 bankruptcy.
2. Know which bankruptcy to file for
Now that you know the difference between Chapter 7 and Chapter 13 bankruptcy, you can decide
which chapter to file under. If you are heavily in debt with practically no assets to speak of,
Chapter 7 seems to be the better option, provided you qualify under the new restrictions. On the

3. other hand, if you have temporarily fallen behind on repayments due to an unexpected event like
loss of job or medical expenses, you should opt for Chapter 13.
3. Know how to file for bankruptcy
Once you’ve finalized your decision to file for bankruptcy, it is recommended you approach a
lawyer who deals with such cases. Although technically you can file without a lawyer, the former is
a better option so that all the formalities are adhered to. You can choose between a lawyer who
charges a flat fee and one who charges a percentage of the debt.
4. Know the implications of filing for bankruptcy
Realize that the record of bankruptcy will remain on your credit history for 7 to 10 years, making
it extremely difficult for you to get any kind of loans. Even if you get one, the interest rate will be
very high.
5. Know what to do after filing for bankruptcy
After filing for bankruptcy, live within your means, do not incur additional debt, and make any
scheduled payments the Bankruptcy Court orders.
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