Blog
Law Offices of Chance M. McGhee

Call Today for a FREE Consultation

210-342-3400

Schertz Bankruptcy AttorneyThere are many forms of financial hardship that can affect a person or family. The loss of a job may cause a person to be unable to pay certain bills, or a serious injury or illness may not only result in a reduction of income, but a family may also have large medical bills. In these situations or other cases where a person is unable to pay the debts they owe, bankruptcy can provide much-needed relief, eliminating certain types of debts and providing a family with a fresh start. However, a person may be concerned about how bankruptcy will affect their life and finances, including whether they will be able to continue owning their car.

Bankruptcy, Auto Loans, and Exemptions

Whether a person will be able to keep their car during and after bankruptcy will depend on the type of bankruptcy case, whether they have defaulted on their auto loan, and other factors. If a person still owes money on their auto loan, and they are unable to make payments, they may be able to discharge this debt through bankruptcy, but in these cases, the lender will most likely repossess the car. 

A person may be able to avoid repossession by repaying a defaulted loan through Chapter 13 bankruptcy. In this type of bankruptcy, the past-due amount and any penalties may be grouped together with other debts into a repayment plan. If the debtor makes all payments in the plan, which will last from three to five years, while also remaining current on their car loan payments, they will be able to maintain ownership of the vehicle. Chapter 13 bankruptcy may also allow for a “cramdown” of an auto loan. In these cases, the amount of the loan may be reduced to the amount that the vehicle is actually worth.

...

bankruptcyThere are over 44 million young adults in the United States who currently have student loan debt. Those 44 million people owe a combined total of $1.52 trillion, with the average borrowing being $37,000 in debt by the time they graduate. Student loan debt is a rising issue, especially since many have trouble making their payments. One of the most searched questions online is, “Can I discharge my student loans in bankruptcy?” In short, no, you usually cannot, but as with many things, there are a few exceptions to that rule.

The Brunner Test

In 1998, a law was passed that stated you could not discharge student debt unless you could prove that repaying that debt would cause you undue hardship. In 2005, that law was extended to all types of student debt, including private student loans.

...

TX bankruptcy attorneyNearly 800,000 Americans file for bankruptcy each year, while millions more struggle with the decision filing. Often, those weighing the decision to file are doing so under the pressure of constant collection calls, the stress of impending foreclosure or repossession, and without all of the information necessary to make an informed decision. Let us help alleviate some of those fears:

Concern 1: My credit will be ruined.

While it is true that you will experience a decline in your credit score initially, also consider the impact late payments have on your credit score. While it may not be an immediate dramatic decline, the slow loss of credit from delinquency can be more harmful than bankruptcy.

...

Posted on in Uncategorized

Texas bankruptcy attorney, Texas chapter 7 lawyerAlthough it is a decision that should not be taken lightly, bankruptcy is not the “end of the world” even though it can feel like it while you are busy deciding whether or not to file. With a constant and unyielding dark cloud looming over your head of unpaid debt - a detail the incessant calls from creditors will never let you forget - it may seem like there is no light at the end of the tunnel. What many consumers fail to realize is bankruptcy is that silver lining for which they have been searching, rather than an admission of defeat. For most, bankruptcy is often the beginning of a new chapter of life.

You Will Reestablish Credit

Although bankruptcy does appear on a credit report for seven to 10 years, dependant on the chapter filed, it does not mean that lenders will refuse to work with you or your spouse. Most people who file for bankruptcy can apply for a mortgage in as little as one year, so long as they work diligently to prove their picture of financial reliability.

...

Posted on in Uncategorized

Texas bankruptcy attorney, Texas chapter 7 lawyer, Texas chapter 13 attorney,Although much of the United States seems to have recovered from the Global Financial Crisis, thousands of Americans still declare bankruptcy every year. Although many are familiar with the general implications of bankruptcy, few first-time filers understand the intricate laws and how they relate to their particular case.

To shed some light on this complex legal field, here are four common chapter 7 bankruptcy FAQs:

What Makes Chapter 7 Unique?

...

Call Today for a FREE Consultation

210-342-3400

Facebook YouTube Blog
Back to Top