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How Bankruptcy Can Halt Repossession

 Posted on June 13, 2024 in Bankruptcy

Kerrville bankruptcy lawyerAre you facing the threat of repossession in Texas? If so, you are not alone. Many individuals struggle with financial challenges that can lead to repossessing their vehicles or other assets. Fortunately, bankruptcy filing can be a powerful tool to halt repossession and protect your property. A Texas lawyer can help you understand how bankruptcy works and what you need to know to take advantage of this legal option.

What to Know About Repossession in Texas

When you finance a vehicle or other asset, the lender typically has the right to repossess the property if you fall behind on payments. In Texas, lenders can repossess your vehicle without a court order if they do not breach the peace in the process. If you default on your auto loan, your car could be taken away quickly and without warning.

How Bankruptcy Can Help

Filing for bankruptcy can stop repossession in its tracks. Filing for bankruptcy immediately triggers an automatic stay, preventing creditors from pursuing any collection activities against you. This includes repossession, foreclosure, wage garnishment, and more. The automatic stay allows you to explore your options and develop a plan to get back on track financially.

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Bankruptcy Eligibility for Medical Debt: Are You Covered?

 Posted on June 10, 2024 in medical debt

San Antonio bankruptcy lawyerMedical debt can be a heavy burden, especially when it becomes overwhelming and unmanageable. If you are struggling with medical debt and considering bankruptcy as a potential solution, make sure you understand your options and eligibility. A Texas lawyer can help you understand how bankruptcy can provide relief when you face significant medical debt.

What You Should First Know About Medical Debt and Bankruptcy

Medical debt is an ongoing issue that affects countless individuals and families across the United States. Be sure you understand that you are not alone in this struggle. A study conducted by the American Journal of Public Health found that nearly 67% of all bankruptcies in the U.S. are tied to medical expenses. This staggering statistic highlights the significant impact that healthcare costs can have on personal finances.

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How to Prepare for Your Bankruptcy Consultation

 Posted on June 05, 2024 in Bankruptcy Procedure

Boerne bankruptcy lawyerFacing financial hardship is never easy, but know that you are not alone. If you are considering bankruptcy, meeting with a Texas lawyer is a critical first step to reclaiming your financial future. This initial consultation is your chance to get professional advice, learn about your options, and start charting a course forward.

Gather Your Financial Documents

Before your consultation, compile all the documents that paint a clear picture of your current financial situation. This includes:

  • Recent pay stubs or proof of income
  • Bank statements
  • Credit card statements
  • Loan documents
  • Collection notices and court documents related to debts
  • Tax returns for the past two years
  • Valuations or appraisals of major assets like your home or vehicles

Having this information handy will allow your attorney to assess your circumstances quickly and provide more specific guidance. Do not worry if you cannot find every single document—just bring what you have and be ready to answer questions about anything that might be missing.

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What Types of Debts Can Lead to Wage Garnishment

 Posted on May 31, 2024 in Wage Garnishment

Boerne Bankruptcy LawyerYou work hard to make ends meet and suddenly notice that your wages are garnished due to outstanding debt. Wage garnishment can be a shocking and stressful experience, but understanding which types of debts can lead to this situation is crucial for protecting your income and getting through financial challenges. An Illinois lawyer can help you when you are facing this type of situation.

Unpaid Child Support is a Priority Debt

One of the most common types of debt that can result in wage garnishment is unpaid child support. The state takes child support obligations seriously, and if you fall behind on payments, the Attorney General’s office can issue an administrative writ of withholding. This writ allows your employer to withhold up to 50% of your disposable earnings to satisfy your child support debt. If you face difficulties meeting your child support obligations, you should communicate with the court and seek a modification if necessary.

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What if My Credit Score Never Improves After Bankruptcy?

 Posted on May 24, 2024 in Bankruptcy

Boerne bankruptcy lawyerIf you recently filed for bankruptcy, you might be worried about the long-term impact on your credit score. While it is true that bankruptcy can initially hurt your credit, it is important to remember that it is not a permanent black mark. You can see improvements over time with the right strategies and a commitment to rebuilding your credit. However, what if, despite your best efforts, your credit score never seems to bounce back? A Texas lawyer can help you explore this concern and provide some insights based on bankruptcy law.

Make Sure You Understand the Impact of Bankruptcy on Your Credit Score

When you file for bankruptcy in Texas, whether Chapter 7 or Chapter 13, it will be reported on your credit report for up to 10 years. This can cause an immediate drop in your credit score, as bankruptcy is considered a significant negative event by credit scoring models. The extent of the drop will depend on various factors, such as your credit history before filing and the type of bankruptcy you filed for.

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Does it Matter if You Choose Chapter 7 vs. Chapter 13 Bankruptcy?

 Posted on May 17, 2024 in Bankruptcy

Schertz Chapter 7 Bankruptcy LawyerWhen facing overwhelming debt, you may consider filing for bankruptcy as a way to gain a fresh financial start. However, figuring out if you should choose a Chapter 7 or Chapter 13 bankruptcy can be daunting. A Texas lawyer can help you determine the differences between these two types of bankruptcy and help you understand why your choice matters.

Understanding Chapter 7 Bankruptcy

Chapter 7 bankruptcy, also known as “liquidation” bankruptcy, is designed to help individuals quickly discharge most of their unsecured debts, such as credit card balances, medical bills, and personal loans. To qualify for Chapter 7 in Texas, you must pass a means test comparing your income to the state’s median income. The process typically takes three to six months to complete if you qualify. Additionally, the process has strengths and weaknesses, including:

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The Dos and Do Nots of Choosing a Bankruptcy Trustee

 Posted on May 13, 2024 in 341 Meeting

New Braunfels bankruptcy lawyerWhen filing for bankruptcy, selecting the right trustee is important to ensure a smooth and successful process. A bankruptcy trustee is responsible for overseeing your case, managing your assets, and distributing funds to creditors. A Texas lawyer can help you understand the dos and do nots of choosing a bankruptcy trustee.

Do: Understand the Role of a Bankruptcy Trustee

bankruptcy trustee is an impartial party appointed by the court to administer your bankruptcy case. Their primary duties include:

  • Reviewing your bankruptcy petition and schedules
  • Conducting the 341 meeting of creditors
  • Investigating your financial affairs

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How to Tell if Bankruptcy is Right for You

 Posted on May 08, 2024 in Bankruptcy Advice

San Antonio bankruptcy lawyerFinancial troubles can be incredibly stressful for anyone. If you are struggling with debt, you may be wondering if bankruptcy is the solution. Bankruptcy is a legal process that can help eliminate or reorganize your debts, but it is not right for everyone. A Texas lawyer can help with some factors to consider when determining if bankruptcy might be the best path forward.

Severity of Debt Burden

One of the primary indicators that bankruptcy could be appropriate is if your debt load has become unmanageable. Ask yourself if you are consistently behind on minimum payments, being charged late fees, or receiving collection calls. If debt payments are consuming a significant portion of your income each month, making it difficult to afford other necessities, bankruptcy may provide relief.

No Feasible Debt Repayment Plan

Before filing for bankruptcy, you should attempt to negotiate with creditors and create a structured repayment plan. However, if your financial situation makes repaying the full amounts owed unrealistic, even with debt consolidation or settlement, bankruptcy allows a fresh start.

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Steps When Applying for a Mortgage After Bankruptcy

 Posted on May 06, 2024 in Mortgage

Boerne bankruptcy lawyerDeclaring bankruptcy can offer significant debt relief, yet it also affects your credit score and the potential to secure new credit lines, such as mortgages. Keep in mind that bankruptcy does not indefinitely prevent you from acquiring a home in Texas. With the right preparation and guidance from a Texas lawyer, you can improve your chances of mortgage approval after bankruptcy.

Make Sure You Understand Waiting Periods

Under Texas law, you must observe specific waiting periods after bankruptcy before applying for certain types of loans, including mortgages backed by government programs like FHA, VA, and USDA:

  • Chapter 7 Bankruptcy: You should wait two years from the discharge date for FHA, two years from the discharge date for VA, and three years from the discharge date for USDA

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How Bankruptcy May Affect Future Loans

 Posted on April 29, 2024 in Bankruptcy

San Antonio bankruptcy lawyerFiling for bankruptcy can provide much-needed debt relief, but it also has consequences that may impact your ability to obtain future loans. In Texas, the bankruptcy laws aim to help honest debtors get a fresh start while ensuring creditors receive fair treatment. Understanding how bankruptcy affects future lending is crucial when considering this option. A Texas lawyer can help you determine how future loans may affect you.

Credit Score Impact

One of the most significant effects of bankruptcy is the damage it can cause to your credit score. Your credit report will reflect the bankruptcy filing for seven to ten years, depending on the type of bankruptcy you filed. Lenders typically view bankruptcy as a high-risk factor, which can make it challenging to obtain new credit or loans at favorable terms. However, it is important to note that the impact on your credit score diminishes over time, and responsible financial behavior after bankruptcy can help rebuild your credit rating. 

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