Posted on November 10, 2022 in Bankruptcy

If you are struggling with debts, it can seem like you need to dig yourself out of a hole, and the prospect of facing multiple years of financial difficulties can cause a great deal of stress. Fortunately, options for debt relief are available, including bankruptcy. However, the decision to file for bankruptcy may not be easy, and the bankruptcy process can add additional stress and complications to an already difficult situation. As you consider your options, you will want to look at some key factors that may indicate whether you are a good candidate for bankruptcy.

Signs That You Need Debt Relief

The first thing to remember about bankruptcy is that it is not meant to be a moral judgment against a person. While people are often embarrassed about debt and financial struggles, most bankruptcy cases involve situations where families encountered difficulties through no fault of their own. A layoff or other issues that affect a person's income can put a family in a precarious financial position, and large, unexpected expenses can also cause difficulty, such as when a serious injury or illness requires costly medical treatment. Bankruptcy is an option for debtors regardless of the reasons they have accrued debts, and seeking debt relief should not be seen as an opportunity rather than a failure.

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 Posted on November 03, 2022 in Bankruptcy

If you are experiencing financial hardship, you may be wondering if bankruptcy is right for you. However, bankruptcy can often seem like a drastic step, and you may be unsure about how it will affect your credit and other aspects of your life. There are some other ways to address the debts you owe, and you may be considering various alternatives to bankruptcy. However, you will need to understand the benefits and drawbacks of these different methods, and by consulting with a bankruptcy lawyer, you can determine the best options that will work for you.

Alternatives to Bankruptcy

Some non-bankruptcy options that you may be considering include: 

• Debt management plans - Credit counseling agencies offer services to help debtors set up payment plans, and they may be able to negotiate interest rates and reduced monthly payments. This can be an option for those who will be able to make ongoing payments toward their debts. However, if you are struggling financially and unable to make payments, this may not be a good solution.

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 Posted on October 31, 2022 in Bankruptcy

If you have significant debts, you may be considering the options for debt relief that may be available to you, including filing for bankruptcy. This may be an especially urgent concern if you are dealing with harassment from creditors or if you have been served with a lawsuit attempting to collect the amounts you owe. As you address these concerns, you may have come across the terms "collection-proof" or "judgment-proof," and you may be unsure if they apply to you. By understanding what these terms mean and by working with an attorney to learn more about the options for addressing your debts, you can determine the best ways to resolve your debt problems.

Collection-Proof and Judgment-Proof Defined

A person may be considered to be judgment-proof if their assets are exempt from seizure by creditors. That is, a creditor may be able to file a lawsuit against a debtor, but even if a judge rules in their favor, they may be unable to collect the amount owed. Because of this, "collection-proof" may be a more useful term. A creditor will usually be able to obtain a judgment as long as they can demonstrate that they are owed money by the debtor, but they may be prevented from collecting that judgment for a variety of reasons.

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 Posted on October 28, 2022 in Bankruptcy

If you are considering filing for bankruptcy, you are probably feeling overwhelmed and anxious about your financial future. It is important to understand that bankruptcy is a tool to give you a fresh start, not a punishment for anything that happened in the past. Depending on the type of bankruptcy you choose, you may be able to eliminate most or all of your debts relatively quickly by filing for Chapter 7, or you may consolidate your debts and repay some of what you owe over several years through a Chapter 13 repayment plan. After you have discharged your debts through bankruptcy, you will want to make sure you can maintain financial stability, and it is a good idea to take steps to avoid problems with debt in the future. With that in mind, here are some tips on how to avoid problems with debt after you have filed for bankruptcy:

1. Get Organized

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 Posted on October 26, 2022 in Chapter 13

If you are considering filing for bankruptcy, you may be wondering how your creditors will react. Since bankruptcy will remove the obligation to repay some of your debts, it is likely that creditors will not be happy about the loss of money they will experience. However, since bankruptcy is a right that is provided to people in the United States, creditors often will be unable to do anything about a bankruptcy filing. There are some situations where creditors may be able to object, and if you are planning to file for Chapter 13 bankruptcy, you will need to be aware of the possible reasons for the objection to the confirmation of your repayment plan.

Chapter 13 Objections to Confirmation

When you file for Chapter 13 bankruptcy, you will propose a repayment plan to pay off some or all of your debts over a three- to five-year period. The bankruptcy court will review this plan and may make changes before confirming it. Once the repayment plan is confirmed, you will begin making payments according to the terms outlined in the plan. During the repayment plan, you will make payments to the bankruptcy trustee, who will then distribute the payments to different creditors who are included in the plan.

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 Posted on October 20, 2022 in Exemptions

If you are considering bankruptcy, you will want to determine how to receive relief from your debts while retaining as much of your money, property, or other assets as possible. If you are planning to file for Chapter 7 bankruptcy, certain assets may be subject to liquidation, meaning that you will need to surrender them so they can be sold to repay some of the debts you owe. However, certain types of exemptions will apply, and you will not be required to surrender assets that are exempt. When planning for bankruptcy, it is important to know how to maximize your exemptions while also avoiding any fraudulent actions that could affect your case.

Making the Most of Bankruptcy Exemptions in Texas

Debtors who file for bankruptcy in Texas will use the state's laws to determine what assets will be exempt from liquidation. It is important to understand what types of property will be exempt. Texas has some very generous exemptions, including a homestead exemption that allows property owners to keep the full value of the equity they own in their family home. Exemptions are also available for personal property, including one vehicle for each member of a family who has a driver's license, household items, clothing, family heirlooms, athletic equipment, bicycles, tools of the trade, two firearms, jewelry (as long as it does not make up more than 25 percent of the total value of exempt assets), and family pets. Retirement savings accounts will also generally be exempt.

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 Posted on October 05, 2022 in Foreclosure

If you are a homeowner who may potentially be at risk of foreclosure, you may be wondering about your options. If you have encountered financial difficulties that have caused you to miss one or more mortgage payments, you may be concerned about your ability to pay what is owed, including any late fees or penalties, while also making ongoing monthly payments in the future. In this situation, refinancing your mortgage may seem like a good idea, since it could potentially lower your monthly payments. However, there are some risks associated with refinancing, and you will want to explore all of your options to determine the best approach to take.

How Refinancing Works

When you refinance your home, you replace your current mortgage with a new one. This new mortgage will have different terms than your old mortgage, and they could include a lower interest rate, a different loan term, or other changes. Depending on the specifics of your new mortgage, this could reduce your monthly payments and make it easier for you to stay current on your loan. For example, if you have a 30-year fixed-rate mortgage with an interest rate of 6 percent, refinancing to a new 30-year fixed-rate mortgage with an interest rate of 5 percent will allow you to save money on interest each month.

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 Posted on September 30, 2022 in Bankruptcy

If you are experiencing financial problems, or if you are struggling to repay large debts, you may be considering filing for bankruptcy. This is a solution that is available to most people in the United States, and it will allow you to receive relief from your debts. This can often be the best way to end harassment by creditors and ensure that you will be able to put the money you earn toward meeting your family's ongoing needs and saving for the future. However, when preparing to file for bankruptcy, there are a few things you should avoid doing. Failure to follow the laws that affect the bankruptcy process could result in your case being dismissed, and you may be unable to discharge your debts and receive the financial relief you need.

1. Do Not Put Off Bankruptcy Longer Than Necessary

If you are struggling to make ends meet, you should not ignore the warning signs that you may need to file for bankruptcy. The sooner you seek help, the better off you will be. Putting off the inevitable will only make your situation worse, and it will put even more stress on you and your family. Delaying bankruptcy could lead to creditors obtaining a legal judgment against you, the garnishment of your wages, the repossession of one or more vehicles, or a home foreclosure. These issues can complicate the bankruptcy process and make it more difficult to address the debts you owe. If bankruptcy is the best option for dealing with your debt, you should be ready to take that step before your problems get worse.

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 Posted on September 26, 2022 in Bankruptcy

People can encounter issues related to debt in a variety of situations, and when debts become overwhelming, or when financial problems affect their ability to repay what is owed, bankruptcy may be the best option. Filing for bankruptcy can be a confusing and overwhelming process, and different bankruptcy laws may apply in each state. For those who recently moved to Texas from another state, it is important to understand how this will affect their ability to file for bankruptcy and receive relief from their debts.

The 180-Day Rule and the 730-Day Rule

The venue where a person may file for bankruptcy will depend on where they have lived during the previous six months. A person must file for bankruptcy in the state where they lived for the majority of the 180 days before the date they file. That is, if a person recently moved to Texas, they may file for bankruptcy in Texas as long as they have lived in the state for at least 91 days during the six months before they file. Otherwise, they will be required to file for bankruptcy in the state where they previously lived.

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 Posted on September 02, 2022 in Chapter 13

While debtors have multiple options for addressing debts through bankruptcy, many people may choose a Chapter 13 bankruptcy, which will allow them to avoid the loss of certain types of property. In a Chapter 13 case, the debtor proposes a repayment plan to the bankruptcy court that details how they will repay some of their debts over a three- to five-year period. However, even though a repayment plan may make sense at the time a person files for bankruptcy, financial difficulties may arise in the future that can affect their ability to make ongoing payments. In these situations, debtors will need to understand what will happen if they fail to make the required payments.

Addressing Late or Missed Payments in a Chapter 13 Case

During a Chapter 13 bankruptcy, a debtor will be required to make all payments in their repayment plan on a monthly basis. If payments are late, or if the debtor misses one or more payments, the bankruptcy trustee may take action to address this issue. In some cases, the bankruptcy case may be dismissed. This means that the bankruptcy protection that the debtor was enjoying will be ended, and creditors may resume seeking collection of debts. In addition, if a foreclosure was halted by the bankruptcy, the mortgage lender may resume the foreclosure process.

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