Blog
Law Offices of Chance M. McGhee

Call Today for a FREE Consultation

210-342-3400

Archive for the ‘New Braunfels bankruptcy lawyer’ tag

Signs Filing For Bankruptcy Might Be Your Best Option

December 7th, 2018 at 12:05 am

Texas bankruptcy attorneyIn today’s society, bankruptcy still has a stigma surrounding it. Many people think that if they file for bankruptcy they are failures or irresponsible for having to resort to such tactics. In reality, all kinds of people file for bankruptcy – rich and poor alike – for reasons beyond their control. Filing for bankruptcy can be a life-changing decision, which is why it should not be taken lightly. It is always a better choice to repay your debts than filing for bankruptcy, but for many people, their best option is to file for bankruptcy and start a clean slate. Making the decision to file for bankruptcy can be difficult, which is why we have compiled a list of three signs that filing for bankruptcy might be in your best interest.

You Have Already Tried Negotiating

If you have a lot of debt, one of the things you can do is contact your creditors to try to negotiate out a repayment plan that works for you. If you have already tried to do this and your creditors are not willing to work with you, then you do not have many other choices but filing for bankruptcy.

You Have Looked Into Consolidating Your Debts

If you have debt, especially credit card debt, another option is to refinance or consolidate your debt. This means that you will take out a personal loan to cover the costs of your credit card debts, and rather than paying back the individual credit cards, you will be making one monthly payment to your loan provider. This is often beneficial because the loan interest rate is often much lower than your credit card interest rates. If you have tried to consolidate your debt but you still have credit card debt, you might need to consider bankruptcy.

Your Liabilities Are Much Greater Than Your Assets

One of the major reasons people file for bankruptcy is because they simply do not have enough money to pay their debts. For example, if you owe $3,400 a month in debts and you only make $3,000 a month, you do not have much of a choice. If your liabilities greatly outweigh your assets like this, you may need to consider a bankruptcy.

A New Braunfels Bankruptcy Attorney Can Help You Make the Decision

Deciding that you would be better off filing for bankruptcy is a serious and life-changing decision. Filing for bankruptcy does not come without its challenges and you will have to be OK with the fact that you will have to deal with these challenges for a couple of years. If you feel like you are drowning in debt and you are not sure which way to turn, you should contact a Boerne bankruptcy lawyer to help you make a decision. At the Law Offices of Chance M. McGhee, we help people make the decision to file bankruptcy every day. We know the bankruptcy process inside and out and can help you prepare for what is to come when you file. Contact our office at 210-342-3400 to set up a free consultation.

 

Sources:

https://www.investopedia.com/articles/pf/08/bankruptcy-filing.asp

https://www.thesimpledollar.com/when-does-it-make-sense-to-file-for-bankruptcy/

https://www.thebalance.com/should-you-file-bankruptcy-960627

How Bad is Bankruptcy for Your Credit Score?

July 30th, 2018 at 3:51 pm

Texas bankruptcy attorney, Texas bankruptcy lawyer, One of the first questions most people ask when considering the bankruptcy option is, “How badly will this impact my credit score?” For many, this fear becomes large enough that it prevents any action, whatsoever. In fact, when surveying any portion of the population, most people agree that the lasting impact on their credit rating is to blame. It is true that filing for bankruptcy will remain on your credit report for up to ten years; however, there are many factors to consider before determining whether bankruptcy is or is not the right solution for you.

The Impact Does Not Last for Ten Years

If you file for Chapter 13, bankruptcy will only remain on your credit score for seven years; Chapter 7 is ten years. However, with each year that passes, the impact bankruptcy has on your credit report diminishes. Recent activity influences your score far more significantly than a negative history. After filing, keep up with your budgetary plan, and you will successfully rebuild your credit quickly.

You Can Still Buy a Home or a Car

Within two years of time, you may be able to apply for an FHA loan for a mortgage payment, which is a guaranteed loan from the government and often has an interest rate lower than its conventional counterpart. Additionally, if you need to purchase a vehicle, many loans may be available to you, albeit at a higher interest rating. After filing for bankruptcy, your credit rating will drop between 150 and 250 points, which may put you in a poor credit bracket. Automobile loans for this credit ranking come with a high interest rate, which inevitably makes the applicant pay thousands more than someone with a higher credit score. A better option is to buy a relatively inexpensive automobile outright with cash for a few years until your credit score improves. If this is not an option, choose an auto loan between $4,000 and $6,000, so your monthly payment is low, despite the higher interest rate.

Your Credit Score Is Already Suffering

By the time most people consider the option of bankruptcy, they have already experienced missed payments, charge-offs, liens, foreclosures, and any number of other financial missteps. Each of these negatively impacts a credit score. Filing for bankruptcy is just another negative mark from which everyone eventually recovers. It is not life-ending, as many would have you believe. Instead, filing for bankruptcy potentially gives you a better opportunity for the future. If you were able to start fresh, you could put money into retirement or savings as you have always wanted, but maybe have never been able to accomplish.

Have Your Questions Answered

Perhaps you are just beginning to consider bankruptcy. Doing research is an essential first step. A Schertz bankruptcy attorney will help answer any questions you may have. Law Offices of Chance M. McGhee has helped clients just like you overcome financial difficulties for the last two decades. We offer cost-efficient, considerate, and compassionate counsel to all of our clients in San Antonio and throughout central Texas. Call us today at 210-342-3400 to schedule your free initial consultation to find out how we can help you.

 

Sources:

https://www.moneycrashers.com/bankruptcy-affect-credit-score/

http://www.txnb.uscourts.gov/

 

How to Get Back a Repossessed Vehicle

May 25th, 2018 at 9:17 am

repoIn the United States, 170 million consumers depend on a vehicle for daily activities. From trips to the grocery store to a daily commute to work, Americans rely heavily on having independent transportation. Unfortunately, when financial hardship strikes, lenders are quick to repossess their vehicles, even if payments are only one month behind, in some cases. The next part of ur “Surprising Benefits” series explains how filing for bankruptcy can stop a repossession from occurring or even return a repossessed car back to your possession.

If It Is Still in Your Possession

In the state of Texas, repo agents do not need to notify you before taking your vehicle. Realistically, if your payment is in default, even just by a short time, a repossession agency may already be looking for your car, truck, motorcycle, RV, or any other vehicle burdened with a loan. Filing for bankruptcy may be a viable solution to your situation. Bankruptcy places an “automatic stay” is on all collection attempts for all loans, including your vehicle. For many Americans, this stay is enough to catch up on payments, without including it in the bankruptcy process.

After It Is Repossessed

If the car is already repossessed, there is still a possibility of having the vehicle returned; but you must act fast. Lenders work quickly to send the repossessed cars to auction and often have them sold within two weeks. Once the vehicle is sold to a third party, it is too late to have it returned, and you may still owe money to your lender. Typically, the amount the car earns at auction goes toward the original loan balance and the debtor is responsible for the difference, which will include interest and repossession fees. Filing for Chapter 13 bankruptcy stops the sale of the vehicle, renegotiates the terms of the loan over the next three to five years, and returns the car to your possession. A lender may still hold the debtor responsible for the repossession fees. However, many find that preferable to losing the car entirely and still owing.

Ask an Attorney

If your vehicle loan is in default, there is a possibility that you are up for repossession. Depending on the bank and your past payment history, you may have a more extended amount of time, but this is not guaranteed. Stop the guessing game today by contacting a Schertz, TX bankruptcy lawyer. Law Offices of Chance M. McGhee understand how frustrating it is avoiding collection calls and the damaging impact losing a car can have on your career and your ability to put food on the table. Call us at 210-342-3400 today to schedule your free, no-obligation consultation to further explore your vehicle-saving options.

 

Sources:

https://hedgescompany.com/automotive-market-research-statistics/auto-mailing-lists-and-marketing

https://www.citylab.com/transportation/2014/02/9-reasons-us-ended-so-much-more-car-dependent-europe/8226/

Choosing Between Bankruptcy and Foreclosure

May 10th, 2018 at 9:04 am

foreclosureThe decision between filing for bankruptcy or foreclosing on your home is stressful. Neither is optimal when it comes to the immediate financial impact to your credit score, however, neither are late payments. Bankruptcy stays on your credit report for 10 years, while foreclosure typically rolls off in seven years. But, before you give in to losing your home, there are a few details worth considering.

Saving the Home

First, you must decide if you want to save the home. If you are behind by a month or two, contact your lender. The foreclosure process is expensive for banks. In many cases, your lender will work with you. Options to consider include:

  • Make up the late payments;
  • Restructure the loan; or
  • Request a forbearance.

The Foreclosure Option

First, consider that foreclosure is very serious to future mortgage lenders, more than a bankruptcy that did not include the house. Additionally, foreclosure will drop your credit score by 200 or 300 points. Discuss the option of a short sale instead of foreclosure with your lender. With this option, the house is worth less than the principal balance of the loan, in which case, you may owe the remaining balance. In many situations, banks waive this difference. If a short sale is not an option, some banks accept “deed in lieu of foreclosure,” where you turn the house over to the lender and owe nothing. Explore these opportunities with your lender

How Bankruptcy Can Help

There are many options when filing for bankruptcy, each with unique benefits to suit your needs. Because you own a home and have income, Chapter 13 will probably be your best option. Rather than liquidating everything, Chapter 13 allows you to restructure your debt. As soon as you file, an automatic stay is placed on all accounts, effectively stopping all debt collection attempts. The stay also halts foreclosure proceedings, which may help you catch up on payments. Next, all of the creditor and lenders then convene with an appointed trustee to create a payment plan to repay the debt. This option allows you to keep your assets, including your home, and eventually get caught up on your mortgage.

Ask an Attorney

Mortgage lenders and collection agencies send correspondence that is intimidating and overwhelming. The calls and other communication can stop now. You can begin looking forward to a brighter financial future today. Discover if bankruptcy is the right solution for you by calling a New Braunfels, TX bankruptcy attorney. The Law Offices of Chance M. McGhee will take the time to carefully examine the details of your case and give you honest feedback on which bankruptcy option is best for you. Call 210-342-3400 today to schedule your free, no-obligation consult.

 

Sources:

http://www.nbcnews.com/id/21478416/ns/business-answer_desk/t/which-worse-foreclosure-or-bankruptcy/#.WuvfQDGG_IU

http://www.txs.uscourts.gov/node

Rules of 341 Meetings in Bankruptcy

September 10th, 2014 at 10:26 am

341 meetingAll Chapter 7 bankruptcy petitioners are required to attend a creditors meeting. This is typically the only “formal” meeting the petitioner will be required to attend. This meeting is also known as a 341 meeting, named after the section of the bankruptcy code that addresses it. A 341 meeting is most often held at the office of the trustee who is overseeing the bankruptcy.

Some of the documents that your bankruptcy attorney will have you prepare ahead of time to bring to the meeting include:

  • Paycheck stubs,
  • Federal and state tax returns for the past four years,
  • Any bank or other financial account statements, and
  • Property deeds and titles.

The petitioner is required to answer, under oath, questions that the trustee or any creditors may have.  One of the purposes of the meeting is to make sure the petitioner is not lying about or hiding any assets that could be used to pay off creditors. In most cases, the meeting itself does not last any longer than 15 minutes.

However, if a trustee is not happy with a petitioner’s answers, he or she can request the petitioner provide more documentation to support their answers. Often, this documentation can be mailed to the trustee. However, occasionally, the trustee will continue the meeting for another day. According to the 314 statute, if the trustee is requesting a continuance of the creditor’s meeting, then the trustee must immediately file a written notice of when the adjourned meeting will resume.

It is that rule that protected a Chapter 7 bankruptcy petitioner’s home when the trustee handling her case attempted to object to the homestead exception the woman had filed.

In her bankruptcy petition, the woman had filed a homestead exception for the home she owned. However, she and her husband had separated and the woman moved out of the home. At the creditor’s hearing, the trustee objected to the exemption and continued the meeting to a later, unspecified time.

The trustee then filed a written objection to the homestead exemption, but because he never filed a written continuance of the creditors meeting, the court allowed the homestead exemption in the bankruptcy.

If you are struggling with debt problems in the San Antonio, Texas area due to job loss, medical issues, or any other reason, seek help from an experienced San Antonio bankruptcy attorney today. Contact the Law Offices of Chance M. McGhee for all of your bankruptcy needs, and to start the process of financial relief and recovery.

Internal Revenue Service Issues: Tax Levies vs. Tax Liens Part Two

August 29th, 2014 at 8:58 am

tax levyNeither a tax lien nor a tax levy from the Internal Revenue Service is a positive situation, and can certainly have dire consequences for you as a consumer and a taxpayer. A lien simply assigns the government’s right to your assets before any private creditor and is normally a result of unpaid income taxes and can be more than an inconvenience for anyone. In contrast, a levy is much more serious. Fortunately, there are remedies for both scenarios. A tax lien can result in high bills owed, a public filing of the tax lien, as well as attaching the label to every type of property you own.

Although selling the property can certainly help the situation in some cases, it is important to remember that all proceeds will go towards paying the lien, often leaving you in even more hardships. There are other ways to get rid of a tax lien, however, and use of a Texas attorney can make all the difference in how your case is resolved.

Consider the following options when a lien is placed on you by the Internal Revenue Service to help your case:

  • Paying off the overdue debt: Although most often easier said than done, should you have the means to do so, this is your best option. All tax liens will be removed within 30 days of the resolved debt, although this must be done in full;
  • Discharge of property: This option can make certain property that you owe exempt from the lien, and taking its equity out of the hands of the IRS and the federal government. While this will not always apply, it may help you save your residence or vehicle;
  • Withdrawal of the lien: While you are still liable to pay the full amount you owe the IRS, a withdrawal of the lien assures all other creditors that the government is not longer competing for your assets. Certain criteria must be met, such as ongoing compliance with payment plans and tax code.

A tax levy can be more complex, although there are ways to get this removed as well. The following is a short list of ways an experienced attorney can cause the least amount of hardship on you possible by getting a levy removed:

  • If you filed for bankruptcy before the levy notice was issued;
  • Proving the levy will cause undue economic hardship;
  • You did not have adequate opportunity to dispute the claim;
  • A desire to set up a payment plan of some sort;

These tax levies are no joking matter and can result in you losing your credit, property, as well as significant financial losses. A Texas bankruptcy lawyer with experience dealing with the IRS can not only help you protect your assets, but also your livelihood. Contact The Law Offices of Chance M. McGhee today for a free initial consultation regarding your economic hardships.

Call today for a FREE Consultation

210-342-3400

Facebook Blog
Back to Top Back to Top