Posted on June 24,2024 in Creditor Lawsuits

Filing for bankruptcy is often a challenging decision, but it can provide a fresh financial start. However, what happens when a creditor obtains a new judgment against you after you have initiated the bankruptcy process? This situation can be confusing and stressful, but understanding your rights with a Texas lawyer can help you through this difficult time.

Legal Actions You Can Take When a Creditor Obtains a Judgment Against You

When a creditor obtains a judgment against you following your filing for bankruptcy, you have several legal options at your disposal.

• Notify the Court: Immediately inform the bankruptcy court about the new judgment. This step is crucial as it allows the court to take appropriate action.

• File a Motion to Enforce the Automatic Stay: The automatic stay is a powerful tool in bankruptcy that halts most collection activities. Filing a motion to enforce this stay can stop the creditor from pursuing the judgment.

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 Posted on June 18,2024 in Bankruptcy

Financial hardships can strike unexpectedly, leaving homeowners struggling to keep up with their mortgage payments. When faced with foreclosure, many homeowners consider alternative options, such as short sales. While short sales can be a viable solution for some homeowners, it is important to understand when this option is most appropriate. A Texas lawyer can help you determine if this is the best route for you.

What are Short Sales?

When homeowners sell their property for less than their mortgage balance, it is called a short sale, and the lender accepts the proceeds as full payment. In a short sale, the lender essentially forgives the remaining debt, allowing the homeowner to avoid foreclosure and its negative consequences. Remember that in certain cases, a lender may require you to pay the remaining balance after a short sale, which is typically the difference between the sale price and the initial loan amount.

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 Posted on June 13,2024 in Bankruptcy

Are you facing the threat of repossession in Texas? If so, you are not alone. Many individuals struggle with financial challenges that can lead to repossessing their vehicles or other assets. Fortunately, bankruptcy filing can be a powerful tool to halt repossession and protect your property. A Texas lawyer can help you understand how bankruptcy works and what you need to know to take advantage of this legal option.

What to Know About Repossession in Texas

When you finance a vehicle or other asset, the lender typically has the right to repossess the property if you fall behind on payments. In Texas, lenders can repossess your vehicle without a court order if they do not breach the peace in the process. If you default on your auto loan, your car could be taken away quickly and without warning.

How Bankruptcy Can Help

Filing for bankruptcy can stop repossession in its tracks. Filing for bankruptcy immediately triggers an automatic stay, preventing creditors from pursuing any collection activities against you. This includes repossession, foreclosure, wage garnishment, and more. The automatic stay allows you to explore your options and develop a plan to get back on track financially.

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 Posted on June 10,2024 in medical debt

Medical debt can be a heavy burden, especially when it becomes overwhelming and unmanageable. If you are struggling with medical debt and considering bankruptcy as a potential solution, make sure you understand your options and eligibility. A Texas lawyer can help you understand how bankruptcy can provide relief when you face significant medical debt.

What You Should First Know About Medical Debt and Bankruptcy

Medical debt is an ongoing issue that affects countless individuals and families across the United States. Be sure you understand that you are not alone in this struggle. A study conducted by the American Journal of Public Health found that nearly 67% of all bankruptcies in the U.S. are tied to medical expenses. This staggering statistic highlights the significant impact that healthcare costs can have on personal finances.

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 Posted on June 05,2024 in Bankruptcy Procedure

Facing financial hardship is never easy, but know that you are not alone. If you are considering bankruptcy, meeting with a Texas lawyer is a critical first step to reclaiming your financial future. This initial consultation is your chance to get professional advice, learn about your options, and start charting a course forward.

Gather Your Financial Documents

Before your consultation, compile all the documents that paint a clear picture of your current financial situation. This includes:

• Recent pay stubs or proof of income
• Bank statements
• Credit card statements
• Loan documents
• Collection notices and court documents related to debts
• Tax returns for the past two years
• Valuations or appraisals of major assets like your home or vehicles

Having this information handy will allow your attorney to assess your circumstances quickly and provide more specific guidance. Do not worry if you cannot find every single document—just bring what you have and be ready to answer questions about anything that might be missing.

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 Posted on May 31,2024 in Wage Garnishment

You work hard to make ends meet and suddenly notice that your wages are garnished due to outstanding debt. Wage garnishment can be a shocking and stressful experience, but understanding which types of debts can lead to this situation is crucial for protecting your income and getting through financial challenges. An Illinois lawyer can help you when you are facing this type of situation.

Unpaid Child Support is a Priority Debt

One of the most common types of debt that can result in wage garnishment is unpaid child support. The state takes child support obligations seriously, and if you fall behind on payments, the Attorney General’s office can issue an administrative writ of withholding. This writ allows your employer to withhold up to 50% of your disposable earnings to satisfy your child support debt. If you face difficulties meeting your child support obligations, you should communicate with the court and seek a modification if necessary.

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 Posted on May 24,2024 in Bankruptcy

If you recently filed for bankruptcy, you might be worried about the long-term impact on your credit score. While it is true that bankruptcy can initially hurt your credit, it is important to remember that it is not a permanent black mark. You can see improvements over time with the right strategies and a commitment to rebuilding your credit. However, what if, despite your best efforts, your credit score never seems to bounce back? A Texas lawyer can help you explore this concern and provide some insights based on bankruptcy law.

Make Sure You Understand the Impact of Bankruptcy on Your Credit Score

When you file for bankruptcy in Texas, whether Chapter 7 or Chapter 13, it will be reported on your credit report for up to 10 years. This can cause an immediate drop in your credit score, as bankruptcy is considered a significant negative event by credit scoring models. The extent of the drop will depend on various factors, such as your credit history before filing and the type of bankruptcy you filed for.

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 Posted on May 17,2024 in Bankruptcy

When facing overwhelming debt, you may consider filing for bankruptcy as a way to gain a fresh financial start. However, figuring out if you should choose a Chapter 7 or Chapter 13 bankruptcy can be daunting. A Texas lawyer can help you determine the differences between these two types of bankruptcy and help you understand why your choice matters.

Understanding Chapter 7 Bankruptcy

Chapter 7 bankruptcy, also known as “liquidation” bankruptcy, is designed to help individuals quickly discharge most of their unsecured debts, such as credit card balances, medical bills, and personal loans. To qualify for Chapter 7 in Texas, you must pass a means test comparing your income to the state’s median income. The process typically takes three to six months to complete if you qualify. Additionally, the process has strengths and weaknesses, including:

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 Posted on May 13,2024 in 341 Meeting

When filing for bankruptcy, selecting the right trustee is important to ensure a smooth and successful process. A bankruptcy trustee is responsible for overseeing your case, managing your assets, and distributing funds to creditors. A Texas lawyer can help you understand the dos and do nots of choosing a bankruptcy trustee.

Do: Understand the Role of a Bankruptcy Trustee

A bankruptcy trustee is an impartial party appointed by the court to administer your bankruptcy case. Their primary duties include:

• Reviewing your bankruptcy petition and schedules
• Conducting the 341 meeting of creditors
• Investigating your financial affairs

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 Posted on May 08,2024 in Bankruptcy Advice

Financial troubles can be incredibly stressful for anyone. If you are struggling with debt, you may be wondering if bankruptcy is the solution. Bankruptcy is a legal process that can help eliminate or reorganize your debts, but it is not right for everyone. A Texas lawyer can help with some factors to consider when determining if bankruptcy might be the best path forward.

Severity of Debt Burden

One of the primary indicators that bankruptcy could be appropriate is if your debt load has become unmanageable. Ask yourself if you are consistently behind on minimum payments, being charged late fees, or receiving collection calls. If debt payments are consuming a significant portion of your income each month, making it difficult to afford other necessities, bankruptcy may provide relief.

No Feasible Debt Repayment Plan

Before filing for bankruptcy, you should attempt to negotiate with creditors and create a structured repayment plan. However, if your financial situation makes repaying the full amounts owed unrealistic, even with debt consolidation or settlement, bankruptcy allows a fresh start.

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