Posted on August 15,2024 in Chapter 7

Financial distress can be overwhelming, but there are legal solutions available. Chapter 7 bankruptcy offers a path to eliminating unsecured debts and regaining financial stability. A Texas lawyer can help you understand what Chapter 7 is all about and how it may benefit you.

What You Should Know About Chapter 7 Bankruptcy

At its core, Chapter 7 bankruptcy is designed to discharge most unsecured debts, giving individuals and businesses a fresh financial start. This type of bankruptcy eliminates the legal obligation to repay discharged debts. However, it is important to note that not all debts can be wiped clean through this process. Debts typically eligible for discharge include:

• Credit card balances

• Medical bills

• Personal loans

• Past-due utility bills

• Certain business debts

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 Posted on August 08,2024 in Taxes

Receiving a notice from the Internal Revenue Service (IRS) threatening wage garnishment can be a frightening experience. This situation arises when you have unpaid tax debts, and the IRS decides to collect by taking a portion of your paycheck directly from your employer. However, there are steps you can take to address this issue and protect your financial stability. Based on your situation, a Texas lawyer can point you in the right direction.

What to Understand About IRS Wage Garnishment

When the IRS garnishes your wages, they can legally require your employer to withhold a significant portion of your paycheck and send it directly to the IRS. This process continues until your tax debt is paid in full or alternative arrangements are made. The amount garnished depends on various factors, including your filing status and number of dependents. However, it can be substantial enough to cause significant financial hardship.

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 Posted on August 05,2024 in Qualifying For Bankruptcy

Financial distress is overwhelming, but bankruptcy provides options to people suffering from a burden of debt which they feel they may never get out from under. Understanding the qualifications for bankruptcy in Texas can help you make informed decisions about your financial future. A Texas lawyer will walk you through the factors determining bankruptcy eligibility. With legal guidance, you can move forward with the most strategic option for your situation.

Make Sure You Understand the Bankruptcy Types in Texas

Before discussing qualifications, you should understand the two primary types of personal bankruptcy available in Texas:

• Chapter 7 bankruptcy: Individuals can wipe out the majority of their unsecured debts through Chapter 7 bankruptcy, commonly known as "liquidation bankruptcy.

• Chapter 13 bankruptcy: Reorganization bankruptcy, also known as Chapter 13 bankruptcy, allows individuals to develop a three- to five-year repayment plan for their debts.

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 Posted on July 31,2024 in Chapter 13 bankruptcy

Chapter 13 bankruptcy serves as a lifeline for many individuals seeking to regain control of their finances. This form of bankruptcy, often called a "wage earner’s plan," offers a structured approach to debt repayment. But who exactly stands to benefit most from this option? A Texas lawyer can help you understand the ideal candidates for Chapter 13 bankruptcy and how it can provide a path to financial recovery.

Potential Candidates for Chapter 13 Bankruptcy

Chapter 13 bankruptcy suits those with a steady, reliable income. This could include salaried employees, self-employed individuals with consistent earnings, or retirees with regular pension or Social Security payments. Homeowners facing foreclosure find Chapter 13 especially beneficial, as it allows them to stop foreclosure proceedings and catch up on missed mortgage payments over time.

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 Posted on July 25,2024 in Bankruptcy

Bankruptcy often carries a stigma, conjuring images of financial ruin and long-lasting consequences. However, the reality is far more nuanced. Facing a substantial debt can make it seem like there is no way out, and bankruptcy can be a powerful tool for financial recovery. A Texas lawyer can help you understand four key reasons bankruptcy might be a more positive option than initially thought.

Think Of it As a Fresh Financial Beginning

Bankruptcy offers a chance to reset your financial situation. When you file for bankruptcy, many unsecured debts, such as credit card balances and medical bills, can be eliminated. This immediate relief from debt burden allows you to start rebuilding your finances. An automatic stay goes into effect upon filing, providing legal protection that halts most collection efforts, including foreclosures, repossessions, and wage garnishments. This gives you breathing room to address your financial situation without constant pressure from creditors.

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 Posted on July 18,2024 in Bankruptcy

Bankruptcy is a complex legal process that often carries a stigma because of widespread misconceptions. It is important to dispel these myths and provide accurate information to those facing financial hardships. A Texas lawyer can help break down some of the most common misconceptions about bankruptcy and shed light on its realities.

Myth 1: Bankruptcy Means You Have Failed Financially

Many people view bankruptcy as a sign of personal failure or irresponsibility. However, this perception is far from the truth. Bankruptcy is a legal tool designed to provide relief to individuals and businesses facing overwhelming debt. It can be triggered by various factors, often beyond one’s control, such as:

• Medical emergencies and unexpected health costs
• Job loss or significant reduction in income
• Economic downturns affecting businesses
• Divorce or separation leads to financial strain

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 Posted on July 12,2024 in Creditor Lawsuits

Receiving notice of a lawsuit from your creditor can be devastating, but understanding your options and taking prompt action is vital. A Texas lawyer can help you with the steps you should take if you are served with a lawsuit, helping you through this challenging situation effectively.

Make Sure You Understand the Lawsuit

When you receive a lawsuit, you will be served with two key documents:

• Citation: This official court document informs you that you are being sued and provides a deadline for your response.

• Petition: This document outlines the creditor’s claims against you and the amount they are seeking.

Read these documents carefully and note the deadline for your response, typically 20 days from the date you were served in Texas.

Steps to Take When Served with a Lawsuit

Do not ignore the lawsuit. Failing to respond can cause a default judgment against you, allowing the creditor to garnish your wages or seize your assets. Gather all relevant financial documents, including account statements, payment records, and correspondence with the creditor.

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 Posted on July 08,2024 in Tax Debts

Facing overwhelming tax debt can be a frustrating experience that you feel you may never climb out of. Many individuals and businesses struggle to meet their tax obligations, leading to mounting pressure and financial stress. However, bankruptcy may offer a solution to alleviate this burden. A Texas lawyer can help you understand how bankruptcy can potentially help with tax debt and provide insights into the process.

Can Bankruptcy Get Rid of Tax Debt?

The short answer is: it depends. While bankruptcy cannot eliminate all types of tax debt, it can provide relief for certain tax obligations under specific circumstances. Here are some factors that determine whether your tax debt may be dischargeable:

• Age of the tax debt: Generally, income tax debt must be at least three years old to be eligible for discharge.

• Timely filing: You must have filed a tax return for the debt in question at least two years before filing for bankruptcy.

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 Posted on July 03,2024 in Building Credit

Rebuilding your credit after bankruptcy might seem daunting, but it is achievable with the right approach. A Texas lawyer can guide you through four essential steps to help you regain financial stability and improve your credit score following bankruptcy. When you have the right professional on your side, bankruptcy can be advantageous.

Bankruptcy Is Not Always Bad

Contrary to popular belief, bankruptcy is not always a negative experience. For many individuals, it serves as a fresh start and an opportunity to reset their financial situation. In Texas, bankruptcy laws provide protection and a structured process for debt relief. While it does impact your credit initially, bankruptcy can also be the first step towards a more stable financial future.

Step 1: Understand Your Credit Report

After your bankruptcy discharge:

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 Posted on June 27,2024 in Chapter 13 bankruptcy

Child support obligations are a serious responsibility, and falling behind can lead to significant legal and financial consequences. If you are having difficulty with overdue child support payments, Chapter 13 bankruptcy may offer a path to regain control of your finances while fulfilling your parental duties. A Texas lawyer can help you determine if this is the best path to take for your circumstances.

What Exactly is Chapter 13 Bankruptcy?

There are different types of bankruptcy, and it is helpful to know which may have the potential to help your situation the most. A "wage earner's plan," commonly known as Chapter 13 bankruptcy, enables individuals with consistent income to establish a three to five-year plan for repaying their debts. Unlike Chapter 7 bankruptcy, which involves liquidating assets, Chapter 13 enables debtors to keep their property while making manageable payments.

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