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Creditor Judgments: What You Need to Know

May 26th, 2014 at 4:48 pm

creditor judgments, Texas bankruptcy attorney, San Antonio bankruptcy attorney, unsecured debt, lien on your property, fiduciary accounts, post judgment debt, file for bankruptcyOne of the greatest fears people have regarding bankruptcy is due to the overall negative stigma associated with filing. Another reason for the apprehension is not knowing exactly when the right time is to file for bankruptcy. And often asked is the question, “Is it ever too late to file bankruptcy?”

The short answer is no. However, according to some experts, you will want to file before your rights are taken away because of a judgment.

A creditor has the right to take you to court for any unsecured debt. An unsecured debt is one that does not have an item of collateral attached to it such as a house or a car. This may be for a loan, or even a credit card. Once the creditor wins the case, you will then have a civil judgment against you and a new negative mark on your credit.

The creditor can collect on the judgment in several ways:

  • Federal law says that the creditor can take 25 percent of your wages after taxes. There are state regulations in some states that dictate a lower amount. The creditor can continue to garnish your wages until the debt is satisfied.
  • The creditor can place a lien on your real property such as your house or car. When you sell that real property, the creditor gets paid from the proceeds.
  • The creditor may also be able to place a levy on your fiduciary accounts. This means they can take cash from your bank accounts. They can even levy your real property to be sold at an auction.

In order to avoid a post judgment debt, you will want to file for bankruptcy before it gets to that point. One of the things that cannot be removed from your credit report is a civil judgment. In this case, waiting too long can make your credit issues worse. If you have questions about filing bankruptcy, call a Texas bankruptcy attorney today.

What Do I Need to File for Bankruptcy?

April 29th, 2014 at 7:00 am

bankruptcy file preparation, bankruptcy in Texas, bankruptcy petition, Chapter 13 repayment plan, credit counseling course, file for bankruptcy, prepare for bankruptcy, San Antonio bankruptcy lawyer, Texas bankruptcy attorney, types of bankruptcyThe best way to prepare for bankruptcy filing is to work with an experienced attorney, as there are strict rules and guidelines for filing bankruptcy in Texas. And knowing what to expect in advance can make the process easier for you.

Failing to file for bankruptcy properly could result in your case being dismissed entirely, so it is worth your time to review filing requirements ahead of time. Bear in mind that you will need to complete a credit counseling course before you can file, so you might want to plan several months in advance.

The first part of your bankruptcy file is your petition. You will also need to submit schedules, a statement of your financial affairs, a debtor statement of intention, a statement of your current monthly income, and a list of up to 20 unsecured creditors. These documents all should be submitted with your bankruptcy petition. Additional documentation to be submitted includes a pro se questionnaire if representing yourself, proof of credit counseling completion, a creditor matrix verification, and a Chapter 13 repayment plan if applicable.

It may help to gather all of the necessary materials in advance to discuss with your bankruptcy attorney. Maintaining copies of your tax returns for the last few years is also important. You will want to review your credit report in advance to match it up with your own list of debts and to verify whether there are any mistakes on the report. The more knowledgeable you are about your affairs, the easier it will be to file your bankruptcy petition.

Prepare for bankruptcy by working directly with your attorney. Specific regulations will depend on the type of bankruptcy you are filing, but you can have most of your questions answered by your lawyer. If believe that filing is your best option, contact a Texas bankruptcy attorney today to discuss your bankruptcy file preparation.

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