Consumers Can Still File Bankruptcy, Dallas Morning News Reports

Although the mainstream media has recently been full of reports on subprime mortgage lending, credit crisis, and the housing market woes, that same reports often overlook the obvious solution to some of those problems for consumer–bankruptcy relief. As Peter Orville noted, so-called money experts often fail to mention Chapter 13 as an option to stop foreclosure. Some have even gone so far as to report, erroneously, that bankruptcy is no longer an option. Refreshingly, the Dallas Morning News gets it right, reporting “Consumers can still file for bankruptcy, but it’s harder now.”

The report notes that bankruptcy is still available to consumers who need its protection, though the changes in the law require more time and paperwork.

Some consumers believe that bankruptcy is no longer available to anyone, attorneys said.

“If someone qualifies for it, they should be allowed, as long as they’ve exhausted every avenue,” Mr. Ross said.

The bankruptcy law requires debtors to undergo credit counseling before filing for bankruptcy.

When meeting with a financial counselor or a bankruptcy attorney, be honest about your financial situation.

“It really depends on how easily you can pay these creditors off,” Mr. Chesnutt said. “If you think you can pay them off in five years or less, then you may consider not filing bankruptcy. If you can’t pay it, you should consider bankruptcy.”

Like most media reports on bankruptcy, there are some details I could quibble with, but it’s a fairly well balanced piece, and in contrast to many of it’s media brethren, the Dallas Morning News accurately reports that bankruptcy is still available to those who need it.