Posted on November 21, 2023 in Bankruptcy Law

If you are struggling with making mortgage payments and considering bankruptcy, a short sale of your home can be a favorable option. A Texas lawyer can help you determine how you can properly have a short sale for your situation.

Make Sure You Qualify for a Short Sale

You must have sufficient equity in the home and valid financial hardship to convince the lender to allow a short sale. Hardship examples include job loss, divorce, unaffordable mortgage rate resets, or heavy medical debts. The lender will typically require a current appraisal showing you are underwater.

Gather All Required Documentation

Lenders will request extensive financial records from you, such as tax returns, bank statements, income documentation, hardship evidence, and past-due mortgage notices. Organize everything thoroughly. Missing paperwork can torpedo the short sale approval.

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 Posted on November 16, 2023 in Debt Collection

Being served with a lawsuit from a debt collector can be alarming. However, it does not necessarily mean you are out of options. There are different ways a Texas lawyer can respond when faced with debt litigation.

Evaluate the Claims in the Lawsuit

Read the lawsuit paperwork carefully. Do you recognize the debt being claimed? Is the amount accurate? Is it still within the statute of limitations? Be aware that debts can be bought and sold multiple times, so the plaintiff may not be the original creditor. If you dispute the main details of the lawsuit, make sure to contact a lawyer about possible defenses.

Negotiate Directly if Appropriate

If you do not contest the validity or amount of the debt, you may be able to negotiate directly with the plaintiff or their attorney. They may agree to a payment plan or lump sum settlement for less than the amount owed. Get any deal in writing before paying or admitting liability. However, be cautious about negotiating without guidance.

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 Posted on November 10, 2023 in Bankruptcy

Filing for bankruptcy is a major decision with long-term consequences. However, for some individuals facing extreme financial distress, it can provide much-needed relief and a chance to rebuild. When weighed carefully, there are scenarios where the benefits of bankruptcy outweigh the drawbacks. A Texas lawyer can help you decide if bankruptcy is in your best interest.

Gain Immediate Protection from Creditor Harassment

Once you file, you receive an automatic stay that legally forces creditors to stop all collection efforts immediately. You will no longer have to worry about threatening calls or lawsuits. This period lets you focus on getting back on your feet financially.

Pause Foreclosures and Wage Garnishments

Along with halting collections, filing stops imminent foreclosures, repossessions, utility shut-offs, and court-ordered wage garnishments in their tracks. Your assets and income are shielded so you can work toward recovery.

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 Posted on November 07, 2023 in Foreclosure

Facing home foreclosure can be emotionally and financially devastating. If you have fallen behind on mortgage payments, you may be wondering - can filing for bankruptcy stop the foreclosure process and let you keep your home? A Texas lawyer could likely provide some ways to keep you in your home, depending on your specific circumstances.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy allows you to restructure debts like mortgage arrears over three to five years. You will make monthly payments to a trustee who disperses payment to creditors. A Chapter 13 bankruptcy will halt a foreclosure while you get caught up on payments through your repayment plan. But staying current on the plan is essential. If you default, the lender can resume foreclosure proceedings.

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 Posted on November 03, 2023 in Chapter 13 bankruptcy

Bankruptcy can seem like a daunting thing even to consider. However, there are some situations in which it would be best to apply for bankruptcy so you can move on with your life. Thankfully, there are better options than others if you want to make sure you keep your assets. A Texas lawyer can ensure you are going down the right path with the type of bankruptcy.

Chapter 13 Allows Keeping Property By Repaying Debts

If you face overwhelming debts but want to keep your home and other assets, Chapter 13 bankruptcy is usually the best option. Unlike Chapter 7, which requires liquidating non-exempt property, Chapter 13 allows you to keep your assets under a repayment plan.

Benefits of Chapter 13 in Texas

A major benefit of filing Chapter 13 bankruptcy in Texas is the state’s very generous exemptions that allow for the protection of substantial assets from creditors. For example, Texas has a homestead exemption allowing you to shield up to 10 acres of home equity in urban areas or up to 100 acres in rural areas.

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 Posted on October 27, 2023 in Bankruptcy And Divorce

Going through a divorce while also facing bankruptcy can add extra layers of complexity to an already difficult situation. If you find yourself in this position, you should know some key things about bankruptcy and divorce. A Texas lawyer can help you with this process.

File Divorce First

It is usually recommended to file for divorce before filing for bankruptcy when possible. This allows you more flexibility in structuring debt division in the divorce settlement. Marital debts can be divided equitably before bankruptcy discharges them.

Joint Bankruptcy Has Pros and Cons

Filing a joint bankruptcy petition with your spouse has some potential advantages. Your combined assets and debts are considered, potentially yielding a faster discharge of debt. However, this requires a high level of cooperation and trust with your soon-to-be ex-spouse, which may not be realistic.

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 Posted on October 19, 2023 in medical debt

As the medical debt piles up, bankruptcy may seem like your only option. But how do medical bills get handled in bankruptcy? It depends on the chapter you file. Understanding the nuances allows the strategic use of bankruptcy to find relief. A Texas lawyer can help you determine if this is the best option for you and how it can affect your situation.

Navigating Medical Debt in Chapter 7

Chapter 7 bankruptcy fully discharges many unsecured debts, including medical bills, credit cards, personal loans, and similar loans. Discharge legally eliminates your obligation to pay. However, not all medical debt can be discharged. Bills owed to government entities like Medicare are considered priority debts and remain payable. Ongoing obligations like child support also still must be paid. Before filing Chapter 7, categorize your medical debts to understand which could be erased so you can evaluate if liquidation bankruptcy suits your situation. An attorney can help thoroughly assess discharge-ability.

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 Posted on October 16, 2023 in Pre-bankruptcy Planning

Filing for bankruptcy can be a complex process with many steps to take beforehand. Being organized and thorough in your pre-filing preparations will help ensure your bankruptcy case goes smoothly and efficiently. Follow this guide to make sure you have completed all the necessary tasks before submitting your bankruptcy petition. A Texas lawyer can help make sure you meet all the necessary steps.

Review Your Finances

Take time to carefully evaluate your complete financial situation, including assets, debts, income, and expenses. Gather recent bank statements, bills, tax returns, and anything else that documents money going in and out. Calculate your average monthly costs for necessities like housing, food, medical care, and transportation.

Understanding the full scope of your finances allows you to determine the best type of bankruptcy filing to pursue (Chapter 7 or Chapter 13). It also helps you complete your paperwork accurately. Being realistic about your budget also helps set money aside for bankruptcy fees.

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 Posted on October 11, 2023 in Chapter 7

For Texas consumers overwhelmed with massive amounts of unmanageable debt, filing for Chapter 7 bankruptcy can provide the fresh start and financial relief they desperately need. However, you must meet certain specific criteria to legally qualify for the full debt elimination available through Chapter 7 in Texas. A Texas lawyer can help you navigate through the Chapter 7 bankruptcy process.

Satisfying the IRS Means Test

One of the main qualifying requirements involves passing the rigorous “means test” enforced by the IRS. This required test looks at your current monthly income levels and compares them to the median income averages for a Texas household of your size. You satisfy the means test if your income falls below those median thresholds based on Texan household size. The IRS adjusts these median income levels annually.

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 Posted on October 06, 2023 in Chapter 7

If you are struggling with overwhelming credit card debt in Texas, filing for Chapter 7 bankruptcy could provide the fresh start you need. Here is how the Chapter 7 process can eliminate credit card balances and how a Texas lawyer can help you.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy completely wipes out many types of unsecured debts, including credit card balances. This allows you to get out from under crushing debt and restart your financial lives.

However, some assets may be liquidated to repay creditors. A trustee sells non-exempt assets, and funds are disbursed to creditors. Exempt assets like your homestead are protected under Texas law.

Filing for Chapter 7 Bankruptcy in Texas

To file for Chapter 7 bankruptcy in Texas, you will complete a petition and schedules detailing your debts, assets, income, and expenses. The forms are submitted to a Texas bankruptcy court along with a filing fee.

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