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How Do I Know When Filing for Bankruptcy Is My Best Option?

April 17th, 2020 at 4:21 pm

Texas bankruptcy lawyer, TX chapter 7 attorneyBankruptcy can be a scary word and it can be even scarier if it is something you have been considering. Bankruptcy is still considered by some to be a taboo or something to be avoided at all costs. In reality, bankruptcy can be the best option for some people who are drowning in debt. Filing for bankruptcy does come with a few unfavorable consequences, which should be factored into any consideration when determining whether or not to file for bankruptcy. Speaking with a skilled Texas bankruptcy lawyer can help you understand your situation a little better.

To File Or Not to File?

It can be confusing to know whether or not you should file for bankruptcy. Every person’s situation is different, which is why every decision to file for bankruptcy is different. For the most part, you should consider filing for bankruptcy if you are unable to repay your debts after you have paid for necessities such as food, living expenses, and healthcare. However, there are a few other situations in which you may also want to consider filing for bankruptcy:


  • You have considered debt consolidation. There are steps that you can and should take before making the decision to file for bankruptcy. If you have a lot of debt that carries high-interest rates, you should look into consolidating some of your debt at a lower interest rate. In many cases, this lowers the monthly payment and allows you to get a handle on your debt. However, if you still cannot afford the consolidated payment, you may want to look into bankruptcy.
  • Your credit score is already low. Many people say that the only thing stopping them from filing for bankruptcy is the fact that your credit score and creditworthiness are impacted. However, if you already have a low credit score, you may be better off filing for bankruptcy and working on building your credit up.
  • You are at risk of losing your car or home. If you are behind on mortgage payments or car payments, you risk having your property foreclosed on or taken from you. When you file for bankruptcy, the automatic stay is put into place which prevents any and all debtors from collecting from you while your bankruptcy case is processed. The automatic stay does not protect your home and vehicle forever, but it can be useful to help you get back on track after a bankruptcy.

A Kerrville, TX Bankruptcy Attorney Can Help You Assess Your Situation

If you are wondering if filing for bankruptcy could be right for your situation, you should speak with a skilled San Antonio, TX bankruptcy lawyer today. At the Law Offices of Chance M. McGhee, our team is here to help you determine whether or not filing for bankruptcy is in your best interest and if so, the right bankruptcy for your situation. Call our office today at 210-342-3400 to schedule a free consultation.



Small Business Bankruptcy in Texas

July 16th, 2018 at 11:52 am

bankruptcyThe modern business world is tough, especially for smaller firms. If your small business has run into serious financial distress, you are far from alone. Right now, it may be time for your company to review its available options, to work towards shedding or restructuring some of that overly burdensome debt. Bankruptcy is one option that is on the table for your company. However, it is certainly not the only option and it is not always the best option. Here, our experienced San Antonio business bankruptcy attorneys offer tips for weighing whether or not it is time for your small business to file for bankruptcy protection.

Know Your Situation, Know Your Finances

When your business is facing financial distress, it is time to take a very hard look at the books. You need to know your finances, your assets, your debts and your projected future revenue like the back of your hand. Indeed, the key to making the best possible decision is knowing the true financial standing of your company. It is imperative that you enter the debt restructuring process with full knowledge and a clear head.

Always Consider Non-Bankruptcy Options First

Filing for business bankruptcy is a big step. It is neither right nor necessary for every financially distressed Texas small business. Our firm focuses on helping businesses find the best available solution for their individual needs. We always carefully consider all available non-bankruptcy options first. Your company may be able to get back on firm, stable financial footing with a less disruptive method, such as debt consolidation or voluntary debt restructuring. If you go down this road, our attorneys can help you negotiate the terms of these agreements.

Make an Honest Assessment

Finally, small business owners will need to make an honest assessment of the state of their business. While bankruptcy is not the appropriate legal tool for every financially distressed company, it is necessary in many cases. Further, waiting too long to file for bankruptcy may result in your business falling into an even bigger financial hole, making it very difficult to restructure and dig yourself out. The bottom line: If your small business is facing serious financial troubles, you need to take action now. The sooner you address the problem, the better off your company will be.

Request Your Free Business Bankruptcy Consultation

At the Law Offices of Chance M. McGhee, our passionate San Antonio business bankruptcy attorneys have extensive experience serving the unique needs of small businesses. If your small business is facing significant financial distress, we can help. Please do not hesitate to contact us today to set up a free review of your case.



Warning Signs of Financial Trouble

September 24th, 2014 at 7:30 am

Bankruptcy Financial TroubleAll of us struggle with finances at one time or another. However, for many people, that struggle may become overwhelming and feel as if it is never-ending. For those people, bankruptcy can often be the first step to gain control over their financial future.

There are certain signs that financial advisors point to as red flags that your debt has become unmanageable and bankruptcy should be considered. These signs include:

  • The balance of your credit card debt continues to increase, yet your monthly income is either staying the same or has decreased;
  • You pay only the minimum amount due on your credit cards. Some months, you pay even less than the minimum or completely miss the payment;
  • You have multiple credit cards and they all have balances on them;
  • When you receive an offer for a new credit card, you immediately apply;
  • You are using credit cards to pay credit card bills. If you have applied for a credit card, only to take cash advances in order to pay other credit card bills, that is a definite red flag to serious financial trouble;
  • You are close to or at the limit on most or all of your credit cards;
  • You are charging more each month on your cards than you are sending in for your monthly payment;
  • You are using your cards to purchase food, gas, utility bills and other life necessities;
  • Your credit cards are no longer used for ‘extras’ or for convenience sake. Instead, you are using them because you do not have any money;
  • The phone is ringing and letters piling up in your mailbox about your late bill payments;
  • You do not know the true amount of what your total credit card debt is, and you do not want to know.

If you recognize your situation in this list, then it may be time to consult with an experienced San Antonio bankruptcy attorney. Find out what your best options may be to help and get you back on the road to financial recovery.

San Antonio Bankruptcy Options

October 18th, 2013 at 11:00 am

san-antonio-bankruptcyWhen bills start piling up and you don’t have the income to cover them, life gets complicated. Most minds turn right to bankruptcy as a last resort, but there are other options.

Simple ways to avoid going into debt from Money Management include:

1. Have sufficient insurances. Many studies show that bankruptcies are often caused by medical reasons. When something out of the ordinary comes along, such as an unexpected surgery that is not covered by medical insurance.

2. Adjusting spending according to income. There are many items that people buy that could be exchanged for less expensive items and other items may not be in a new budget that is created to pay off debts.

3. Try to settle debts. Sometimes debts can be settled for less than the full value, which could be an important step in diminishing debts.

4. Create cushion of savings. When at all possible, put some money away in a savings account for rainy days. Try to maintain an amount equal to three to six months’ worth of living expenses. This can be a safety cushion for an unexpected change such as losing your job or an expensive medical emergency.

5. Manage your debt. It’s suggested to keep debt under 20 percent of income after taxes have been subtracted. When debts exceeds 20 percent, it tends to become much harder to manage and bankruptcy may be the best option.

If you have tried to maintain a low debt and simply cannot pay off the money that is due to your debtors, you may have to turn to bankruptcy to relieve you of your debts. Contact a Texas bankruptcy attorney before making any final decisions. An experienced lawyer can help you through the process in the best way.

Attorney Chance M. McGhee can help you resolve your debt issue in a San Antonio, Texas bankruptcy court today.

Bankruptcy May Be Better Than Consolidation

April 16th, 2013 at 11:49 am

Debt consolidation has long been hailed as an alternative to bankruptcy. Consolidating debt can make large debts manageable, enabling the debtor to wrap his head around the money that he owes and conceive of a plan to pay it off. Yet lately many debt consolidation companies have come under fire for shady practices, meaning that in the end of the day, it might be better to file bankruptcy. According to US News and World Report, “debt consolidation loans are like a politician during an election year—they make a lot of promises, but don’t always deliver.” Some of these promises include (but are not limited to): convenience, lower interest rates, and lower monthly payments. Yet most debt consolidation companies fail to mention that many plans leave debtors with “high fees, greater debt and potentially more interest payments,” according to US News and World ReportBankruptcy May Be Better Than Consolidation IMAGE

There are warning signs to watch out for if you’re considering debt consolidation, according to US News and World Report. The first is to not use consolidation as a “cure-all.” It can be likened to fad dieting—it may work for a while, but at the end of the day, only dedication and persistence (likened to financial chastity and responsibility) can relieve one of debt. “Estimates suggest that at least 70 percent of those who consolidate their debt end up with as much or more debt a few years later.”

Another warning sign to avoid is any consolidation company that charges a hefty fee for their service. If you’re adamant that consolidation is for you, try looking into options like no-fee, no-interest credit cards that offer 12 or 18-month no-pay plans. Another thing to be wary of is the fact that you may end up paying more interest over time, subsequently increasing your debt rather than squelching it. “While you may lower your monthly payments… the lower monthly payment may be the result of extending your payments out over more years,” according to US News and World Report. This just means you’ll end up paying more in the long run.

If you or someone you know is considering debt consolidation, bankruptcy might be a better option. Don’t go through it alone. Contact a dedicated Texas bankruptcy attorney today.

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