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Strategies for Balancing your Budget
With the economic downturn that has taken place in the United States over the past few years, some people are still struggling to get back on their feet. A recent article listed a few easy tips that could make balancing your budget and getting a handle on debt a much simpler task.
- Spend extra money on credit card and loan balances. USAA member Nikki Tracht and her family had been dealing with extreme levels of debt. One of the things she learned was to start using any extra money on bills and loan balances. With her new system, Tracht makes minimum payments on all bills…except the one with the lowest balance. Her extra money goes toward that one, so one bill is getting paid off completely at a time.
- Selling or returning what you’re not using. Many other members of USAA say that they usually sell their extra unneeded items online, because every dollar you get back counts. The money earned can go towards your credit card bill and any other unpaid loans.
Texas Homestead Exemptions Good for Ranchers
One of the most common forms of consumer bankruptcy is a Chapter 7, in which debts are eliminated through the repossession of certain assets. In a Chapter 13 bankruptcy, debt is reorganized so that assets can be protected, and in some cases even saved. Not all assets have to be eliminated in a Chapter 7 bankruptcy, however, and Texas has one of the most lenient bankruptcy exemption codes in the country. 
One such exemption is the Texas homestead exemption, which allows debtors to keep their homes, providing that the home is less than 10 acres in a metropolitan area and 100 acres in a rural area. According to the Texas Comptroller’s Office, only a debtor’s principal residence qualifies for the homestead exemption, and the house must be used as the debtor’s principal residence on January 1 of the tax year for which bankruptcy is being filed.
Filing chapter 13 bankruptcy in Texas
If you are considering filing for bankruptcy, one option that you have is to file under Chapter 13 bankruptcy. If you choose to do so, you will be able to create a payment plan with supervision of the bankruptcy court. After creating the payment plan, you will have between two and five years to repay all of your creditors.
To File for Chapter 13 Bankruptcy, you must follow the steps listed below. To ensure that you file correctly, it is best to hire a competent Texas bankruptcy attorney.
- Define the Texas bankruptcy district that you live in. You must file your case in the correct district according to the Bankruptcy Code and the local rules of bankruptcy court in Texas. The four districts in Texas are: Northern, Southern, Eastern and Western. The boundaries are available online.
Social Security Benefits to be Protected in Bankruptcy
When it comes to bankruptcy in America, there is rarely an occasion that it is coupled with good news. However, there is a cause for a sigh of relief for millions of consumers.
The Ninth Court of Circuit Appeals has protected Social Security benefits from creditors that seek to retrieve any penny they can from bankrupt consumers. Most people who are bankrupt are already facing financial hardships which are not made any easier when faced with a fixed income. Many of these people are disabled or elderly. The court has determined that Social Security income would not be used or considered in a Chapter 13 repayment plan.
Bankruptcy attorneys all over the country are applauding this latest court decision. What this means to you, the consumer, is that when faced with the decision to file bankruptcy, you do not have to worry about losing your fixed income nor having it compromised by having it considered when determining the best bankruptcy plan for your situation.
What to Do When You Are In a Financial Crisis
Going through a financial crisis can be one of the most difficult things you can go through in your life. It can cause so much stress and uncertainty. From losing a job to not being able to pay bills in a timely manner because of unexpected medical expenses or uncontrollable circumstances, you can never predict when the crisis will hit. When it does, here are some simple tips to keep your head afloat.
First, understand it is totally normal to feel stressed and overwhelmed – but do not let that get to you! Keep a level head and try your best to keep a positive outlook. Times may be rough but your focus on the positive will help you and your emotions. You just do not want to get all uptight and stressed. Talk to people who can support you and give you a good outlook and perspective to your situation.
Second, take a step back and look at the situation – see what it really looks like and what it all means. Taking emotions out can benefit you to understand more clearly. You want to be able to assess the whole situation and be able to strategize your solution to the issues. Ask yourself what your priority is and what is the total amount due to each creditor? Mark due dates and payment amounts – a spreadsheet might be a great tool to utilize to get you started and organized.
Lastly, figure out how you will get the money to move in the right direction. Will it be staying on a strict budget? Less spending? Getting another job? Maybe selling some of your unneeded things in a rummage sale or online? You might even have to look at what is a want and what is a need – do you really need cable at this time? Evaluating all your expenses will help you understand where you can cut and use that money to pay-off debt.
Contact a San Antonio attorney today if you are in serious debt and not sure how to go about getting rid of it. We can help you to reverse your financial crisis and get a fresh financial start.
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Bankruptcy May Be Better Than Consolidation
Debt consolidation has long been hailed as an alternative to bankruptcy. Consolidating debt can make large debts manageable, enabling the debtor to wrap his head around the money that he owes and conceive of a plan to pay it off. Yet lately many debt consolidation companies have come under fire for shady practices, meaning that in the end of the day, it might be better to file bankruptcy. According to US News and World Report, “debt consolidation loans are like a politician during an election year—they make a lot of promises, but don’t always deliver.” Some of these promises include (but are not limited to): convenience, lower interest rates, and lower monthly payments. Yet most debt consolidation companies fail to mention that many plans leave debtors with “high fees, greater debt and potentially more interest payments,” according to US News and World Report. 
Student loan debt may soon be eligible for discharge in bankruptcy.
The Fairness for Struggling Students Act of 2013 would forgive private student loan debt when an individual files for bankruptcy protection. The bill, cosponsored by Sens. Dick Durbin (D-Ill.), Sheldon Whitehouse (D-R.I.) and Jack Reed (D-Ill.), would reverse 2005 legislation that makes it almost impossible to have private student loan debt discharged in bankruptcy.
According to an article in the Huffington Post, student loans total $1 trillion, or nearly $25,000 per borrower, on average, nationally, each year, yet they are the only loans not eligible for bankruptcy protection. Federal student loans have been protected from bankruptcy claims since 1978. However, those loans typically have lower interest rates, income-based repayment plans and more deferment and forbearance options. Like credit cards, private student loans typically have double-digit, variable interest rates that are highest for the people who can least afford them and have no income-based repayment options.
Bankruptcy Filings Dropped in February, But Remain High Overall
February 2013 showed a 16 percent decrease in South-Central Texas bankruptcy filings over February 2012, but when measured on a month-over-month basis, filings remain up 41 percent. The San Antonio Express-News is reporting that in the San Antonio division of the U.S. Bankruptcy Court for the Western District of Texas last month, there were 288 bankruptcy filings, as opposed to 343 filings in February, 2012.
In terms of the types of bankruptcy actions being filed, the number of Chapter 7 bankruptcy filings has dramatically decreased. Only 105 Chapter 7 bankruptcies were filed in February, 2013, which is only two thirds of the 158 bankruptcies that were filed in the same time period last year. In a Chapter 7 bankruptcy, an eligible debtor can liquidate many debts altogether, thus giving him or her a fresh financial start. Although some debts are not eligible for discharge through Chapter 7 bankruptcy proceedings, some debtors will be able to discharge all of their debts, depending on their specific financial situations.
Means Test for Bankruptcy | San Antonio Bankruptcy Lawyer
Many people who find themselves in overwhelming debt often consider filing for bankruptcy. In order to qualify, a person must past what is known as the “means test”. The United States Department of Justice discusses means testing on its website.
When getting documentation ready, you should gather all sources of income:
- wages, salary, tips, bonuses, overtime, and commissions
- gross income from a business, profession, or a farm
- interest, dividends, and royalties
- rental and real property income
- regular child support or spousal support
- unemployment compensation
- pension and retirement income
- workers' compensation
- annuity payments
- state disability insurance
The Zombie Title: A New Foreclosure Nightmare
Since the housing collapse of 2007, foreclosures have been occurring rapidly across the nation. Banks have been accused of lending to those who should not qualify for mortgages. There is evidence that they have also been up to other shady practices. Now, in 2013, there is a new horror in the housing market.
Thousands of homeowners are finding themselves trapped by a zombie title. A zombie title is when homeowners are legally liable for “foreclosed” homes that have literally came back to life. Banks issued notice of foreclosure only to later decide that it would be too expensive to reclaim the home, in turn transferring the title back to the homeowner. It is an action that mirrors how homeowners abandoned their mortgages during the housing collapse.
These titles are becoming more prominent in the foreclosure process. There is no national database to track these zombie titles but lawyers, housing court judges, code enforcement officials and others involved in foreclosures have noticed the increase.
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