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san antonio bankruptcy lawyerBeing in debt is not uncommon. According to Bankrate, consumer debt across the United States has reached $14.2 trillion, with the average American being nearly $93,000 in total debt. There are many different types of debt, including credit card debt, student loans, car loans, or personal loans. When you are in debt over your head, you have a couple of options when you are seeking assistance. Both debt settlement and bankruptcy can help you get out of debt, but the method through which they do that could not be any more different.

Debt Settlement

Debt settlement is an alternative to bankruptcy that may be right for some people. Debt settlement occurs when you or a representative from a debt settlement company contact your creditor to negotiate a settlement amount that is typically much lower than the original amount you owed. In some cases, you may be able to negotiate the settlement so that you are only left responsible for 50 to 70 percent of what your total debt was. The upside to debt settlement is that it is not a legal process. You do not have to file anything with the court. Furthermore, debt settlement does not have the same long-term effect on your creditworthiness as bankruptcy. 


Filing for bankruptcy can be a much longer and complicated process than debt settlement. Bankruptcy is the process of declaring that you cannot pay your debt and you want the government’s help. There are two different types of consumer bankruptcies: Chapter 7 and Chapter 13. In a Chapter 7 bankruptcy, all of your debts and liabilities are forgiven after the bankruptcy is successfully discharged. In a Chapter 13 bankruptcy, your debts are reorganized into a payment plan that is manageable for you, while the remaining debt is forgiven at the end of your repayment period. Bankruptcy has a significant impact on your credit score and the bankruptcy stays on your credit report for up to 10 years after the bankruptcy is discharged.


Posted on in Bankruptcy

san Antonio bankruptcy attorneyHaving health insurance is extremely important. Both Chapter 7 and Chapter 13 bankruptcy can help you get and keep your health insurance.

Last week we discussed the 6 months of free health insurance provided by the recent American Rescue Plan Act.  It may apply to you if you lost your job and your health insurance with it. If this applies to you please check out that blog post. 

Today’s blog post gets into the broader topic of health insurance and bankruptcy. 


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Paying your stimulus money to various combinations of creditors, in the hopes of avoiding bankruptcy or before a planned one, is dangerous.

Before You Make Decisions That Hurt You

Last week we introduced the radical idea that the best use of your upcoming or already received $1,400 stimulus payment might be to pay for a bankruptcy case. We focused then on how to figure out when you should throw in the towel and decide to file bankruptcy. One clue is if you find yourself making questionable decisions. That can mean that you are starting to feel desperate. Then the bad decisions can turn your situation even worse.


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You no doubt have countless uses for the next stimulus payment. But if you are like some people, the very best use is to file bankruptcy. Like who?  

Last week Congress passed the American Rescue Plan Act and President Biden signed it into law. Among its many parts is the $1,400 per person stimulus payment—officially called the Economic Impact Payment. On Friday, March 12, 2021, the IRS put out a news release about these payments. This provides general information about qualifying for the payments, and the amounts individuals and families will receive. There are more details in this IRS Fact Sheet. For information on your own payment, “[b]eginning Monday [March 15], people can check the status of their third payment by using the Get My Payment tool . . .  .”


TX bankruptcy lawyer, Texas chapter 7 attorney, The decision to file for personal bankruptcy is not one that is easily made. Moreover, the days, weeks, and months following the decision can also be difficult, as there may be feelings of fear or concern. Then there is still the stress of preparing for the bankruptcy process. The following may be able to help alleviate some of that stress and provide guidance on how to find the assistance you need.

Start by Contacting an Attorney

While there are many steps to take during the bankruptcy process, your first should be to contact an experienced bankruptcy lawyer. Not only does this help you prevent missteps during the bankruptcy process, but it can also expedite the next steps. By contacting a lawyer, you can get you on your way to less stress from the creditor calls and collection letters.

Cancel Your Automatic Payments

If you are like most consumers, you have automatic payments that are drafted from your account. Some might be for subscriptions while others might be with creditors, all should be eliminated. This can help you start to step forward and manage your debt more responsibly. It also gives you more control over what you are paying in the weeks leading up to the bankruptcy filing.


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