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 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 Bankruptcy Procedure

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
• Liquidating non-exempt assets (in Chapter 7 cases)
• Distributing funds to creditors

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 Posted on May 08, 2024 in Bankruptcy

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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 Posted on May 06, 2024 in Mortgage

Declaring 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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 Posted on April 29, 2024 in Bankruptcy

Filing 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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 Posted on April 24, 2024 in Foreclosure

If 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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