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Recent Blog Posts
Foreclosure Defense: Saving Your Home
Although the housing market is showing some signs of recovery, millions of Americans still struggle with their monthly mortgage payments. Texas is a non-judicial foreclosure state, so in most cases, the lender does not need a court order to foreclose on a residential mortgage. As a result, most Texas foreclosures are processed in under a month, leaving limited time for foreclosure defense.
Most South Texas families have very little savings, so if they fall even one or two months behind on their mortgage, it can be very difficult to catch up. Although most lenders participate in government-sponsored loan modification programs, such assistance may not come in time to save your house, and may not even come at all.
What Bankruptcy Can Do
The Poverty Prejudice
What do attitudes about the nature of poverty tell us about bankruptcy filings?
In 1995, 60 percent of Americans said that poor people did not show enough initiative to lift themselves out of poverty, while only 30 percent acknowledged that circumstances beyond the person’s control caused wealth or poverty. 19 years later, these figures had shifted to 44 percent and 46 percent, respectively.
When asked to identify these external factors, some pointed to low-wage jobs that do not pay enough for people to get ahead, while others observed that wealth or poverty was essentially a matter of being born into a wealthy or poor family. Still others blamed the high number of government assistance programs that, they claim, encourage people to remain poor.
Will I Lose My Security Clearance If I File Bankruptcy?
Workers at Lackland Air Force Base, Fort Sam Houston, and Randolph AFB, as well as the defense contractors in and around the Alamo City, sometimes hesitate to file bankruptcy because they are afraid they may lose their security clearances. First of all, it is never a good idea to let fear dictate your financial and legal decisions. Second, and more importantly, a voluntary Chapter 7 or Chapter 13 petition does not mean the end of your security clearance, according to both federal law and Department of Defense regulations.
Federal Law
Bankruptcy exists to give people a fresh financial start, and not to punish them for “mistakes” they may have made in the past or to pile misfortune on top of misfortune. So, under 11 U.S.C. 525, it is illegal for any governmental or private employer to make an adverse employment decision on the basis of a bankruptcy filing. In other words, your boss cannot refuse to hire you, refuse to give you a promotion, or fire you simply because you were a debtor in a voluntary bankruptcy.
Should I Use Savings to Pay Off Debt?
Making ends meet when facing steep amounts of debt can be a struggle—especially if you have a family. The truth, however, is that most Americans are in some kind of debt, which often involves expensive mortgages, high-interest credit cards, or student loans.
Many Americans want to end the burden of debt as soon as possible, which is why some of them dip into their savings accounts to pay off lenders. This article will discuss whether or not this is a smart idea.
Weighing the Options
According to U.S. News, one way to reach a decision as to whether or not to pull money out of a savings account is to analyze the long-term effects of debt interest. If the overall interest rate will end up costing you more money in the future, making payments with savings may be a smart decision.
The Real Number One Reason for Bankruptcy Filings
Historically, filing for bankruptcy was typically not considered an option for many people who found themselves struggling with mounting and uncontrollable debt. The stigma attached to bankruptcy was one of shame and failure. However, over the past decade or so, that stigma began to fade as many people realized that bankruptcy was often the only solution to the financial crisis they found themselves in.
In 2012, over 1.2 million people in this country filed for bankruptcy. Prior studies have shown that the leading causes of bankruptcy are medical expenses, unemployment, unexpected life events, and credit card debt.
But just how much of role do medical expenses play in causing people to have to file for bankruptcy? Is it actually one of the leading reasons as we have been led to believe? Many analysts and studies point to the high price of medical care–not only for people who have no medical insurance–but also for people who do have medical coverage as the number one leading cause. It has been cited as the cause of sixty percent of bankruptcy filings each year. However, this statistic was actually garnered from a 2007 Harvard University study. A recent study reached different a conclusion.
Fewer Bankruptcies Now, But Are More Coming?
San Antonio bankruptcy filings are at their lowest rate since 2006, but the decrease may be short lived.
New case filings in the San Antonio Division of the Western District of Texas, which covers Atascosa, Bandera, Bexar, Comal, Dimmit, Frio, Gonzales, Guadalupe, Karnes, Kendall, Kerr, Medina, Real and Wilson Counties, fell 10 percent last year. Volume has declined every year since the Great Recession’s end in 2009. Observers cited a stronger economy fueled by high energy prices as the primary reason for this most recent decline. But, given that oil prices have fallen sharply to their lowest level in years, the area’s economic prosperity may be short lived.
The last oil bust, in the 1980s, triggered a ripple effect that plunged the state into recession.
Understanding Wage Garnishment Laws in Texas
Most Americans have some form of debt, and many struggle to make payments. Some are fortunate enough to get by with responsible budgeting, consolidation, and other financial strategies. However, unexpected circumstances, such as a suffering an injury or losing a job, can cause a debtor to fall behind. In some cases, creditors will garnish a debtor’s income to pay debt.
Although wage garnishment can severely limit a person's financial freedoms, certain requirements must be met in order for wage garnishments to be legal. This article will briefly discuss how wage garnishment laws work in Texas.
Texas Laws Regarding Garnished Wages
For citizens of Texas, creditors cannot garnish wages to pay consumer debt, according to NPR. However, debts involving taxes, student loans, alimony, and child support may lead to wage garnishment.
RadioShack Receives Large Bankruptcy Loan Offer
For the last several months, news stories across the nation have profiled RadioShack’s financial troubles. The electronics retailer has struggled to remain relevant and compete with chains like BestBuy, and over the last few years, RadioShack has reported significant losses.
Recent news has suggested that despite RadioShack's insistence that it does not intend to file for bankruptcy, the company might have to make some drastic financial choices in the coming year. How does a business understand when it is appropriate to file for bankruptcy? Much of it depends on understanding industry trends and knowing how different forms of bankruptcy affect a business.
For businesses considering bankruptcy, discussing the financial state of the company with a bankruptcy attorney may be helpful. Depending on the options available, bankruptcy can be either a positive or negative choice.
A Brief Guide to Managing Credit Card Debt
Although most Americans have some form of debt, many could have avoided financial hardship by responsibly managing credit cards. Having funds instantly available is a great convenience, but overspending can put a person in a world of trouble.
Minimizing expenses is the first step for getting debt under control. Then, develop a budget that incorporates personal income, assets, and expenses. This can be a difficult task, which is why you should consider consulting a financial advisor or an attorney. If the debt amount is too great to pay off in a reasonable time period, consider discussing the situation with a bankruptcy lawyer.
Reasons and Alternatives to Canceling Credit Cards
According to one source, the most common reason for a person to close a credit card account is to achieve greater financial control. However, closing an account can actually harm your credit score.
How to Deal with the Debt of a Deceased Family Member in Texas
A death in the family is always a difficult time for loved ones. Add to that the financial costs of a funeral, and times of mourning can become even more challenging.
If the deceased has debt, it is important to know if relatives are responsible for paying creditors. When a person leaves behind debt from credit cards and other sources, it may be wise to contact a bankruptcy attorney for guidance.
No two debt cases are alike. If the debt was from an account that a living relative owned, the debt will be theirs to pay regardless of the situation. Debt from joint accounts and co-signed loans may also transfer to living relatives.
Selling Off Assets
When a person dies, it is common to sell assets to pay for debts. In some cases, though, the value of the deceased’s assets is not enough to cover the debt. In these cases, it may be wise to consult a bankruptcy attorney to discuss the options.
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