Posted on April 26, 2023 in Bankruptcy

Filing for bankruptcy in Texas can offer a fresh financial start for those struggling with overwhelming debt.

While bankruptcy can discharge many types of debt, understanding that not all debts qualify for discharge is essential.

Debts bankruptcy does not discharge

Bankruptcy proceedings, regardless of whether you file for Chapter 7 or Chapter 13 bankruptcy, do not discharge certain types of debts. For example, bankruptcy does not discharge student loans in most cases. However, if you can prove that repaying your student loans would cause you undue hardship, you may be eligible for a discharge. To do this, you must demonstrate that you have made a good-faith effort to repay the loans and that your financial situation is unlikely to improve in the future.

Furthermore, bankruptcy generally does not discharge some tax debts, such as recent income tax debts, payroll taxes and tax penalties. In certain circumstances, bankruptcy may discharge older income tax debts if you meet some specific requirements, such as the debt being at least three years old and the tax return filed at least two years before filing for bankruptcy.

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 Posted on January 26, 2023 in Creditor Harassment

People who owe someone money may begin to receive phone calls and other communications from the person, company or third party seeking their money. However, sometimes collectors cross the line into harassment, which may include communications containing threats and incessant calls very early in the morning or late at night. Fortunately, there are places where people can turn if they experience harassment by a collector.

If you believe you are the target of creditor harassment in Texas, what are some of the entities that you can contact regarding the matter?

The Federal Trade Commission

The Federal Trade Commission has a rule in place that creditors cannot exhibit abusive behavior in the process of trying to collect a debt. If a creditor is harassing you, filing a complaint with the FTC is a wise first step to take. In addition to harassment, debt collectors are also forbidden from lying in order to intimidate a debtor.

The Consumer Financial Protection Bureau

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 Posted on November 08, 2022 in Bankruptcy

When you file for bankruptcy, it will remain on your credit report for seven to 10 years.

While filing for bankruptcy does damage your credit, there are ways to rebuild after bankruptcy.

Get a secured credit card

With a history of bankruptcy, you become a risk to credit card companies. They do not want to issue a line of credit to people with poor credit scores or a history of non-payment. A secured credit card is an option because it requires a cash deposit from you. Your borrow limit is typically the amount you deposited. This is less risky for the credit company because if you do not pay, they keep your deposit.

Make consistent payments

To help improve your credit score, show that you are a responsible borrower by consistently making payments on time. In addition to making consistent payments for any credit cards or loans you have, also make consistent payments to utility companies.

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 Posted on November 08, 2022 in Bankruptcy

Chapter 7 bankruptcy is helpful if you cannot get out of debt. However, it is not a foolproof solution. There are many mistakes you need to avoid if you decide Chapter 7 is right for you.

According to the United States Courts, 335,886 people filed for Chapter 7 in 2021. If you believe Chapter 7 is the right choice, avoid the mistakes described below.

Do not transfer assets

You cannot change the title on your assets before filing for bankruptcy. Doing so puts you in danger of bankruptcy fraud. Before you file, do not change the title on your car, bank accounts, home or business venture. Chapter 7 does not necessarily mean you will lose all your assets, and committing fraud will not help your situation.

Do not use credit cards

Stop using your credit cards before filing for Chapter 7. If you can, use debit cards and cash only. Creditors might object to a debt discharge if they notice you bought a new watch before filing. You can use a credit card to purchase essential items.

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 Posted on March 09, 2022 in Chapter 13 Bankruptcy

There are a lot of misconceptions about bankruptcy in general. Chapter 13 Bankruptcy, which is a more complex and involved process than Chapter 7 bankruptcy, confuses many people.

Some people assume that if they don’t qualify for a Chapter 7 bankruptcy based on the means test, then it isn’t worth pursuing a Chapter 13 filing. However, Chapter 13 bankruptcy has helped countless Americans regain control over their finances and address insurmountable levels of personal debt.

If you have ever wondered about the answers to any of the three questions below, learning the answers might change your perspective on Chapter 13 bankruptcy.

Will I lose any of my property in a Chapter 13 filing?

The liquidation of personal assets is not typically a requirement in a Chapter 13 filing. Rather than needing to cash out the equity in your home or sell off your valuable possessions to repay creditors, you have to create a repayment plan. Chapter 13 bankruptcy is a great solution for people with a lot of debt but also a lot of property that would be at risk in a Chapter 7 filing.

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 Posted on December 15, 2021 in Foreclosure

The impact of the COVID-19 pandemic is still being felt as variants breach the border of the United States. The near two-year crisis continues to impact not only physical health but also financial stability. Thankfully proactive measures were put into place early on to help those who lost their jobs and struggled to make ends meet.

For homeowners in programs to stave off foreclosure actions, the bill may be due sooner than expected.

Promising statistics

The third quarter of 2021 saw new foreclosures increasing by nearly a third from the second quarter. When looking at the same time last year, that number represents a 67 percent increase. Nationally, Texas ranks second with 2,827. Even with that surge, lenders continued to pursue what is termed “aggressive modifications,” a strategy that should keep foreclosure numbers relatively low and allow people to remain in their homes.

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 Posted on October 05, 2021 in Bankruptcy

People say that knowledge is power, and when you understand how certain systems work, you can use them for your own benefit. Misinformation, on the other hand, could prevent people from taking the right steps to protect themselves.

There is plenty of confusing or inaccurate information floating around about bankruptcy. If you believe any of the myths listed below, you might want to rethink your objections to filing for bankruptcy, as it could be the solution you need for your unsecured debts.

You will permanently destroy your credit

There is no question that filing for bankruptcy will drag down your credit score. You may see your score drop by as much as 200 points immediately after you file. However, having one blemish on your credit report from bankruptcy will do less damage to your credit score than multiple past-due lines of credit and judgments. You will be surprised to see how quickly your credit begins to recover after your discharge since you are eliminating debt.

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 Posted on August 07, 2021 in Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a form of liquidation bankruptcy that may help you get out of debt and back into a more financially secure position in your life. Chapter 7 bankruptcy is great for dealing with issues such as judgments, lawsuits, co-signer debt liability, medical bills and credit card debt.

When you choose this kind of bankruptcy, you may be asked to liquidate some of your assets, but for the majority of people, there are exemptions that help them protect much of what they’ve earned for themselves over the years. With the right help, it may be possible to go through bankruptcy without liquidating anything at all.

What happens when you file for Chapter 7 bankruptcy?

When you file for Chapter 7 bankruptcy, the first thing that happens is that an automatic stay goes into place. An automatic stay makes it so that creditors may no longer seek out payments during the bankruptcy. They are also forced to stop collections activities, so that you don’t have to continue receiving harassing phone calls or letters.

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 Posted on June 10, 2021 in Bankruptcy

A variety of circumstances may lead to someone being encumbered in debt, such as an unexpected medical procedure or job loss. You may find it relatively easy to tackle a few of your smaller bills but struggle to pay off the other, larger ones.

Your creditors will generally try to reach you by phone and mail with notices. They may eventually seek out the assistance of a debt collection agency to attempt to collect your debt if in-house efforts fail. Your creditor may turn to a collections attorney as a last resort. Your creditor’s attorney may then file a lawsuit against you. If they’re successful in doing so or you fail to respond, then the court may enter a judgment in your case.

A judgment may give your creditor an option for garnishing your wages, repossessing your assets, placing a lien on property or tapping into your bank account. You may wonder what rights you have aside from filing bankruptcy.

What should you do if a creditor secures a judgment against you?

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 Posted on April 12, 2021 in Bankruptcy

Running a restaurant has its good times and bad. In the last year or so, the economy has been struggling. For many restaurant owners, this has meant an immense amount of financial pressure.

As a small business owner, you may be interested in finding out more about what you can do to get out of debt and if bankruptcy could be beneficial to you as you wait for the economy to recover. The good news is that there may be options to help.

To start with, there are two main kinds of bankruptcy that small business owners use. These are Chapter 7 bankruptcy and Chapter 11 bankruptcy. Chapter 7 is liquidation-based, meaning that the business will close its doors. Chapter 11 is a type of reorganization bankruptcy, which allows businesses the time needed to restructure and find a way to become profitable despite a heavy debt load or low profits.

Which kind of bankruptcy is right for your business?

The type of bankruptcy you want for your business will vary based on your goals. Do you want to stay open or are you willing to shut your doors? If you want to close your restaurant and walk away, then Chapter 7 bankruptcy may be a good option. It gives you the opportunity to liquidate your business assets and to have the remaining debts discharged.

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