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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 Posted on October 04, 2023 in Chapter 7

When filing for Chapter 7 bankruptcy in Texas, consider reaffirming your auto loan to keep the vehicle. Reaffirmation can allow you to retain an asset while upholding payment obligations. A Texas lawyer can help you with the proper steps to ensure you are going through the process correctly.

What Happens to Debts in a Chapter 7 Bankruptcy

Chapter 7 bankruptcy provides the filer relief by liquidating most unsecured debts like credit cards and personal loans. This gives the filer a fresh start financially. However, filing Chapter 7 means you have a choice regarding secured debts, like car loans or mortgages tied to a vehicle or home as collateral. 

You can either reaffirm the loan agreement and continue making payments or surrender the collateral to the lender. If the car loan is not reaffirmed, the lender can repossess the vehicle even if all payments are current.

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 Posted on September 29, 2023 in Pre-bankruptcy Planning

Facing financial hardship is undoubtedly a stressful situation. For people and businesses considering bankruptcy as a solution, it is essential to understand the duration of the bankruptcy process. Knowing that the process is unpleasant but that it does come to an end can help you maintain perspective and optimism. If you are interested in pursuing bankruptcy as a way to get the financial help you need, contact a skilled lawyer to get the process started today.

Factors Affecting the Duration of a Bankruptcy Case

In Texas, several factors contribute to the length of a bankruptcy case. The complexity of the financial situation, the type of bankruptcy filed, creditors' cooperation, and the court's caseload are significant variables that must be considered. Chapter 7, Chapter 13, and Chapter 11 bankruptcies each have their unique features and timelines. 

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 Posted on September 26, 2023 in Bankruptcy Options

When facing grim financial challenges, individuals often wonder whether bankruptcy is right for them. Bankruptcy is a legal process that provides individuals with a new start by eliminating or restructuring their debt. However, pursuing bankruptcy as an option is not a decision to be taken lightly. If you are considering bankruptcy, contact an experienced lawyer to ensure you know what the process entails and can also be sure to understand the pros and cons of pursuing bankruptcy so you can make as informed a decision as possible. 

You Must First Assess Your Financial Situation

Before you decide to file for bankruptcy, you must thoroughly assess your financial situation. Evaluate your income, expenses, and debt obligations. If you find that your debt is unmanageable, bankruptcy may be a viable option. 

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 Posted on September 22, 2023 in Tax Debts

When faced with financial difficulties, people may find themselves subject to IRS tax levies, where the Internal Revenue Service (IRS) seizes assets to satisfy outstanding debts. However, the automatic stay provision in bankruptcy law can have significant implications on the enforcement of tax levies. It is essential to understand that an automatic stay does indeed stop an IRS tax levy. But remember, if you are going through difficult financial times and are wondering how to most effectively navigate bankruptcy, contact a lawyer to ensure your rights and interests are protected at all times as you seek debt relief through bankruptcy. 

Understanding the Automatic Stay

The automatic stay is a fundamental provision of the bankruptcy code that goes into effect as soon as a bankruptcy petition is filed. It acts as a powerful legal shield, temporarily halting most collection actions against the debtor, including lawsuits, wage garnishments, and asset seizures. The automatic stay aims to provide debtors with breathing space to reorganize their finances and work towards a fresh start. 

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 Posted on September 20, 2023 in Foreclosure

Filing for Chapter 13 bankruptcy allows people to restructure their debt and regain control of their financial situation. One of the most common concerns people have when considering this type of bankruptcy is whether they will lose their home. When it comes to Chapter 13 bankruptcy, as long as you comply with the terms of your Chapter 13 repayment plan, your home will be protected from foreclosure. If you are interested in pursuing Chapter 13 bankruptcy in Texas, contact an experienced lawyer to ensure you have the legal guidance to make informed decisions regarding your financial future.

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