Great news! June 15 is National Smile Power Day, and we have plenty of reasons to make you smile. Smiling, says VeryWellMind, helps you live longer, elevate mood, relieve stress, and boost your immune system. Can bankruptcy make you smile? Sure, because of these three great benefits!
Creditor harassment is a leading cause of stress and discord in Texas families. Sure, Texas laws protect you from the most egregious creditor collection behaviors, but a bankruptcy stops all contact cold. Stays are issued on:
- Creditor lawsuits
- Wage garnishment
- Creditor collection calls and mailings
Even so powerful an agency as the Internal Revenue Service (IRS) has to honor a bankruptcy court's order to stop wage garnishment. Imagine the relief you will feel when you get your entire paycheck at every payday. Think of the smile that will bring.
For many Texas families facing a steady stream of calls during allowable hours, this benefit alone will put a smile on a lot of faces. But you can also look forward to two more great reasons to smile.
Debts can be discharged, which means you are relieved of the obligation to pay back those debts under Chapter 7 bankruptcy. This applies to unsecured loans:
- Credit card debt
- Medical bills
- Payday loans
- Store card obligations
- Any loans unsecured by collateral
Even some secured loans and back taxes can disappear within around three months of declaring personal bankruptcy. You need to work closely with an experienced bankruptcy attorney and be brutally honest about your financial situation. But, with time, patience, and your attorney's hard work, you can see the end of a lot of burdensome debt. That's a reason to smile ear to ear.
Keep the Family Farm (Or Condo, or Whatever)
Bankruptcy is not magic, despite your unsecured debts seeming to disappear. You might be put on a repayment plan based on your disposable income (that's Chapter 13 bankruptcy).
Still, your assets are not automatically tossed on the lawn and sold by a sheriff. You need not fear the tears in your little children's eyes as their toys are ruthlessly carted away.
Exemptions from liquidation under the Texas Property Code include:
- Books of sacred religious writings
- Most furniture, including family heirlooms
- Tools of your trade
- Bicycles and sports equipment
- Domestic animals plus their food, not to exceed two horses, mules, or donkeys and their tack; 12 head of cattle; 60 head of any other livestock; and 120 fowl in total
- Farming and ranching vehicles and implements
- Some firearms
- Jewelry (not to exceed $25,000 in value for the family)
- Burial plots
- Medical devices
- Retirement accounts
- Life insurance policies
- College savings plans
- Workers compensation
- Most of your earnings
As you can see, most of what you hold near and dear will still be yours. Your children may sigh with relief, your spouse may hug you from happiness, and you will definitely feel that smile spread across your face.
As if those three benefits are not enough to put a smile on your face, you get to rebuild your credit, and you get a clean slate to start a fresh financial future.
You can learn a lot more about many more benefits of personal bankruptcy by meeting with a Texas bankruptcy attorney. Your confidential, private complimentary 40 minute strategy session is a call or click away. Reach out to The Page Law Firm today, or telephone our Frisco offices at 214-618-2101. We will give you great reasons to smile!