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Steps When Applying for a Mortgage After Bankruptcy

 Posted on May 06,2024 in Mortgage

Boerne bankruptcy lawyerDeclaring bankruptcy can offer significant debt relief, yet it also affects your credit score and the potential to secure new credit lines, such as mortgages. Keep in mind that bankruptcy does not indefinitely prevent you from acquiring a home in Texas. With the right preparation and guidance from a Texas lawyer, you can improve your chances of mortgage approval after bankruptcy.

Make Sure You Understand Waiting Periods

Under Texas law, you must observe specific waiting periods after bankruptcy before applying for certain types of loans, including mortgages backed by government programs like FHA, VA, and USDA:

  • Chapter 7 Bankruptcy: You should wait two years from the discharge date for FHA, two years from the discharge date for VA, and three years from the discharge date for USDA

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How Bankruptcy May Affect Future Loans

 Posted on April 29,2024 in Bankruptcy

San Antonio bankruptcy lawyerFiling for bankruptcy can provide much-needed debt relief, but it also has consequences that may impact your ability to obtain future loans. In Texas, the bankruptcy laws aim to help honest debtors get a fresh start while ensuring creditors receive fair treatment. Understanding how bankruptcy affects future lending is crucial when considering this option. A Texas lawyer can help you determine how future loans may affect you.

Credit Score Impact

One of the most significant effects of bankruptcy is the damage it can cause to your credit score. Your credit report will reflect the bankruptcy filing for seven to ten years, depending on the type of bankruptcy you filed. Lenders typically view bankruptcy as a high-risk factor, which can make it challenging to obtain new credit or loans at favorable terms. However, it is important to note that the impact on your credit score diminishes over time, and responsible financial behavior after bankruptcy can help rebuild your credit rating. 

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Filing for Bankruptcy to Stop Foreclosure on Your Home

 Posted on April 24,2024 in Foreclosure

New Braunfels bankruptcy lawyerIf you are facing foreclosure on your home in Texas, you may be wondering if filing for bankruptcy can help you keep your property. The answer is yes, but the effectiveness of this strategy depends on your specific circumstances and the type of bankruptcy you file. A Texas lawyer can help you determine how this option can stop foreclosure and what you need to know before making a decision.

The Automatic Stay

Filing for bankruptcy triggers an immediate automatic stay. This legal measure temporarily stops all collection activities against you, such as foreclosure processes. It provides a period of relief to restructure your finances and formulate a plan to manage your debts.

Chapter 7 Bankruptcy and Foreclosure

Chapter 7 bankruptcy, also known as liquidation bankruptcy, can temporarily stop foreclosure. However, it does not eliminate your mortgage debt or provide a long-term solution for keeping your home. Once the bankruptcy case is closed, the lender can resume foreclosure proceedings if you are still behind on payments.

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The Role of Bankruptcy Trustees in Texas

 Posted on April 16,2024 in Bankruptcy

San Antonio bankruptcy lawyerIf you are overwhelmed by debt, filing for bankruptcy is often a great way to get some breathing room again. However, bankruptcy is not simply filling out forms and attending a court hearing. It involves various parties, each with particular roles and responsibilities, working together to ensure that the case is handled fairly and in accordance with state and federal laws. One of the most important players in this process is the bankruptcy trustee. A Texas lawyer can help you figure out the steps and how a trustee is beneficial.

What is a Bankruptcy Trustee?

A bankruptcy trustee is an impartial individual appointed by the court to oversee the bankruptcy process. In Texas, the United States Trustee’s Office appoints bankruptcy trustees for Chapter 7 and Chapter 13 cases. These trustees manage the debtor’s assets, review financial documents, and ensure the bankruptcy case proceeds smoothly.

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Dealing with Creditors During the Bankruptcy Process

 Posted on April 11,2024 in Bankruptcy

Kerrville bankruptcy lawyerOne of the most daunting aspects of facing financial hardship and considering bankruptcy is dealing with creditors. It is essential to understand your rights and the proper steps to take when communicating with creditors throughout the bankruptcy process. A Texas lawyer can help you effectively handle creditors as you go through your bankruptcy.

What is the Automatic Stay?

Once you file for bankruptcy in Texas, an automatic stay goes into effect. This legal protection prohibits creditors from continuing collection efforts, including phone calls, letters, wage garnishments, and lawsuits. The automatic stay provides a temporary reprieve, allowing you to focus on the bankruptcy process without the constant pressure from creditors.

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Bankruptcy Fraud: Pitfalls to Avoid During Your Case

 Posted on April 09,2024 in Bankruptcy

Boerne bankruptcy lawyerA bankruptcy filing can offer a new financial beginning to individuals overwhelmed by debt. Yet, the process can be complex, and inadvertent errors can have repercussions, such as accusations of bankruptcy fraud. A Texas lawyer can help you learn about the common pitfalls to avoid during your bankruptcy case.

What Exactly is Bankruptcy Fraud?

Bankruptcy fraud is a federal crime that occurs when an individual knowingly and fraudulently conceals assets, makes false statements, or files incomplete forms in connection with a bankruptcy case. This can include hiding property, lying about income or debts, or intentionally filing inaccurate documents with the court. It is important to understand that bankruptcy fraud can be committed by the person filing for bankruptcy and by creditors, attorneys, or other individuals involved in the case. Committing bankruptcy fraud can result in severe penalties, including fines, restitution, and even imprisonment.

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The Impact of Bankruptcy on Tax Obligations in Texas

 Posted on April 03,2024 in Income Taxes

San Antonio bankruptcy lawyerWhen faced with overwhelming debt, bankruptcy can allow you to breathe again financially. However, it is crucial to understand the impact bankruptcy can have on your tax obligations. A Texas lawyer can help you determine how different types of bankruptcy affect your taxes and what you need to know to navigate the process effectively.

The Basics of Bankruptcy and Taxes

Bankruptcy is a legal process designed to help individuals and businesses eliminate or restructure their debts. The two most common types of bankruptcy in Texas are Chapter 7 and Chapter 13. While bankruptcy can relieve many debts, it is important to note that it does not automatically eliminate all tax obligations.

Chapter 7 Bankruptcy and Tax Debts

Chapter 7 bankruptcy, or liquidation bankruptcy, can discharge certain types of tax debts. To be eligible for discharge, the tax debt must meet specific criteria:

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Child Support and Alimony in Bankruptcy Cases in Texas

 Posted on March 25,2024 in Child And Spousal Support

Boerne bankruptcy lawyerWhen facing debt, the option of filing for bankruptcy can provide relief and a new beginning. However, for those with child support or alimony obligations, the process becomes more complex. These financial responsibilities are treated differently in bankruptcy cases, and a Texas lawyer can help you determine the specifics of your situation.

Child Support is a Non-Dischargeable Debt

One of the fundamental principles of bankruptcy law is the discharge of eligible debts. However, child support obligations are explicitly excluded from discharge under both Chapter 7 and Chapter 13 bankruptcy. This means that even after completing the bankruptcy process, the debtor remains legally responsible for paying any outstanding child support arrears or future payments.

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Bankruptcy and Co-signed and Joint Debts in Texas

 Posted on March 21,2024 in Bankruptcy

Schertz bankruptcy lawyerWhen a person files for bankruptcy in Texas, it can have significant implications for their co-signed and joint debts. Understanding how these types of debts are handled in the bankruptcy process is crucial for anyone considering filing. A Texas lawyer can help you consider different factors around co-signed and joint debts for your specific bankruptcy case.

Co-Signed Debts in Texas Bankruptcy

A co-signed debt is one where two or more people are equally responsible for repaying the obligation. This is a common scenario when a family member or friend co-signs on a loan or credit card for someone who may not qualify on their own. In a Texas bankruptcy, the co-signer is still obligated to pay the full amount of the co-signed debt, even if the primary borrower receives a bankruptcy discharge.

The primary borrower's bankruptcy filing does not eliminate the co-signer's responsibility. This means the co-signer's credit score and assets remain at risk if the primary borrower cannot make payments. However, there is an important protection for co-signers in Texas. The bankruptcy automatic stay prohibits creditors from trying to collect the debt directly from the co-signer while the primary borrower's case is ongoing. This temporary protection gives the co-signer some breathing room, but it is crucial to understand it ends once the bankruptcy is complete.

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Understanding the Automatic Stay in Bankruptcy in Texas

 Posted on March 14,2024 in Automatic Stay

Boerne bankruptcy lawyerFiling for bankruptcy provides immediate relief through the automatic stay provision. However, this powerful tool has certain limitations that you should understand. A Texas lawyer can explain the automatic stay, what it covers, and where its protections end.

What is the Automatic Stay?

The automatic stay is one of the core protections triggered as soon as a bankruptcy case commences. It serves as an automatic injunction, prohibiting most creditors from taking any further collection actions against you or your property.

The stay automatically arises by federal law operation upon filing a bankruptcy petition. It applies to all bankruptcy chapters—Chapters 7, 11, 12, and 13. No court order is required.

The Primary Benefits of the Stay

The automatic stay delivers crucial breathing room by stopping creditor harassment and providing the debtor with a temporary reprieve from collection efforts. Specifically, it stops:

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