Posted on June 12, 2015 in Chapter 7

Making the decision to file for chapter 7 bankruptcy is not easy. The thought of selling a home and other assets to pay debt is stressful to say the least. However, chapter 7 bankruptcy is often a smart option for those who want to achieve financial independence and stop creditor actions.

Before filing any chapter of bankruptcy, it is important to learn about the process and qualification guidelines. There are certain questions you must ask, and an attorney can guide you through the proceedings, address your concerns, and ensure you do not make mistakes that compromise your interests.

If you are considering bankruptcy, be sure to ask your bankruptcy lawyer these two questions:

How Will My Income Affect My Bankruptcy Options?

An applicant’s income is one factor that determines whether chapter 7 or 13 bankruptcy is the best course. If your income is greater than the state median, according to UScourts.gov, a request for chapter 7 may automatically convert to chapter 13 because the applicant will have the means to work with a structured payment plan.

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 Posted on May 29, 2015 in Bankruptcy

Most debtors face similar personal and emotional conflicts. The uncertainty that comes with insurmountable debt can cause immense stress, and many Americans feel overwhelmed with the complexities of financial recovery. Although many debtors share these concerns, each case is unique.

There are many causes of debt—from medical bills to a sudden loss of employment. One of the most common sources is credit card debt. With high interest rates and the convenience of credit, these cards land many Americans in financial turmoil. This article will shed some light on credit card debt and address some of the associated concerns.

Three Factors Determine If Your Credit Card Accounts Will Close Due to Bankruptcy

All bankruptcy filers must provide a complete record of their debts. This includes credit card debt.

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 Posted on May 22, 2015 in Bankruptcy

Filing for chapter 13 bankruptcy is a smart option for thousands of Americans who struggle to pay their debts. Choosing to file bankruptcy is a major decision, and you should only do so after evaluating alternative options. You should also be aware of the bankruptcy qualifications that apply when attempting to file for chapter 13:

Personal Income

According to Uscourts.gov, personal income is the first criteria when filing for chapter 13 bankruptcy. Proof of a stable income is essential.

Remember that chapter 13 differs from other forms of bankruptcy in that it is not an outright dismissal or liquidation of debts. Instead, this chapter offers the option to restructure and pay off debts over time. This is only possible when the filer has a stable income. The length of the payment plan depends on how the filer’s income compares to the state median.

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 Posted on May 15, 2015 in Bankruptcy

If you are considering bankruptcy, then you probably have several questions and concerns related to the bankruptcy process. There is no doubt about it: Filing for bankruptcy is a serious decision that can affect your personal and financial opportunities.

Here are the answers to three common questions about bankruptcy:

What Are the Alternatives to Filing for Bankruptcy?

In many cases, filing for bankruptcy is a smart decision that puts debtors on the path toward a debt-free life. However, it may not be the only option. Sometimes, aggressive budgeting and smart financial planning are enough to pay off debts.

Each case is unique, and there is no one-size-fits-all solution to repaying debt. Before you decide to file for bankruptcy, you should discuss the options with an attorney. Credit counseling services may also be helpful.

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 Posted on May 08, 2015 in Chapter 7

Provided that you qualify for bankruptcy, it is likely that you will only apply once in your life. If everything pans out well, the process should set you on a more financially healthy course. However, whether due to a serious injury, loss of income, or another financial hardship, some people may find themselves considering bankruptcy a second time.

Is There a Limit to the Number of Times You Can File for Bankruptcy?

For the most part, you may file for bankruptcy as many times as you wish — although this does not imply that you should. Applying for bankruptcy too soon after the first may void your ability to discharge your debts, according to the Federal Trade Commission. This is critical because, in many cases, the purpose of bankruptcy is to discharge debt to make your finances more manageable.

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 Posted on April 24, 2015 in Bankruptcy

As anyone with experience can relate, debt collectors can make life stressful. The sound of a ringing phone is enough to cause anxiety, and although some collectors may be easier to work with, their persistent efforts can feel overwhelming.

Many debtors are surprised to find out that there may be several options available to help them climb out of debt. Some of these can stop the actions of collections agencies almost immediately. In the meantime, here are three tips for dealing with collector calls:

Answer the Phone

According to Creditcards.com, one of the most important steps when dealing with debt collectors is to be responsible and answer the phone. It is equally important to respond to any written notices. Even if the debt seems like it is not yours, do not let it stagnate. Ignoring calls and attempts to contact you can hurt your ability to work out a payment arrangement.

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 Posted on April 17, 2015 in Chapter 7

A wage garnishment is a court order that requires a debtor’s employer to pay a portion of the debtor’s wages to one or more creditors. Many people consider filing for bankruptcy in order to stop or prevent wage garnishment.

According to federal bankruptcy law, only a chapter 7 bankruptcy can stop a wage garnishment. During chapter 7 bankruptcy, the filer liquidates his or her assets to pay off debts, and the court issues an automatic stay.

This immediately stops wage garnishments, as well as all other debt-collection proceedings such as foreclosures or evictions. Chapter 7 bankruptcy will only put a stop to commercial wage garnishments, such as those related to credit cards, certain loans, and mortgages, but it will not stop garnishments for child support or delinquent taxes.

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 Posted on April 10, 2015 in Chapter 7

In addition to the stress that bankruptcy can cause, there is a long list of steps that you must take before filing. However, you should keep in mind that bankruptcy can put you on the path toward a debt-free life, so completing the necessary procedures may be a smart decision.

According to the U.S. Government Printing Office, the Bankruptcy Abuse Prevention and Consumer Protection Act passed in 2005. It requires people in Texas to complete credit counseling six months prior to filing for bankruptcy. You must also complete a financial management course after filing.

Your income and expenses may determine the bankruptcy chapter that you need to file. This is why chapter 7 filers must complete a means test to determine if their income is low enough.

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 Posted on April 03, 2015 in Chapter 7

Filing for bankruptcy should not feel like an admission of guilt or defeat.  Chapter 7 and chapter 13 bankruptcies can help people stabilize their finances and work toward a debt-free life.

Bankruptcy laws are complex, which is why the guidance of an experienced bankruptcy attorney may prove invaluable. A lawyer who has handled cases similar to yours can provide advice and potentially expedite the process. You also may be more likely to avoid mistakes that could compromise your interests.

Although bankruptcy is a smart option for many, not understanding the legalities can make the process more difficult. One recent story demonstrates how not following bankruptcy laws can lead to trouble.

Judge Says Houston-Based Realty Company Circumvented Bankruptcy Laws

According to the Houston Business Journal, American Spectrum Realty, a self-storage space and assisted living center company, allegedly filed separate bankruptcy petitions in two different states. The overseeing judge ruled this action as an intentional means of circumventing specific aspects of bankruptcy law.

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 Posted on March 23, 2015 in Chapter 7

According to the Bankruptcy Code, all a debtor’s nonexempt property belongs to the bankruptcy estate and the trustee has the power to collect such property and distribute the money to creditors. These seemingly straightforward provisions can have a significant impact on a debtor’s bank account. Just because there are funds in the account does not necessarily mean that the money belongs to the debtor.

Assume that David Debtor pays his mortgage with a debit card one morning, and files a voluntary Chapter 7 petition a few hours later. Technically, that payment is still in David’s account, because the bank may take several hours, or even several days, to process the transaction. But if David spends the money, he will be overdrawn. If the trustee later files a Section 542(a) motion demanding the money, what happens?

The floating check controversy also occurs in reverse. Bankruptcy debtors sometimes get tax or escrow refunds, win the lottery, receive an inheritance, or experience some other financial windfall. Again, if the trustee files a motion for turnover, what happens?

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