Call Today for a FREE Consultation
210-342-3400
Recent Blog Posts
Mythbusters: Common Credit Card Misconceptions
One of the reasons why people find themselves trapped by debt is because they have a misunderstanding about a few key issues regarding credit card debt. These credit card misconceptions or myths can set an individual up for failure by leading that person to believe he or she can tackle credit card debt easily. For some cases, the only real solution is to wipe out the debt in bankruptcy.
Many people think that any person can get credit card balances cut in half without too much effort. This is not necessarily true because credit card companies screen clients to make sure that the claimed hardship actually meets company-wide understanding requirements. Not every individual is going to be able to slice their debt in half.
Will Bankruptcy Destroy My Future Job Prospects?
More than one million people every year resort to bankruptcy to get relief from overwhelming debt. And yet there is a stigma out there that you will be unable to find a good job with bankruptcy filing in your past. However, this is not true. Bankruptcy’s impact on your future job prospects has been over exaggerated.
An employer has a right to run a credit check on applicants to see whether potential employers are stable. The reality is, not every job you apply for is going to run a credit check. If you are applying for a job with access to company finances or access to other people’s private data (like Social Security numbers), you should expect a credit check. But this does not mean that every employer vets prospects in this way.
What Do I Need to File for Bankruptcy?
The best way to prepare for bankruptcy filing is to work with an experienced attorney, as there are strict rules and guidelines for filing bankruptcy in Texas. And knowing what to expect in advance can make the process easier for you.
Failing to file for bankruptcy properly could result in your case being dismissed entirely, so it is worth your time to review filing requirements ahead of time. Bear in mind that you will need to complete a credit counseling course before you can file, so you might want to plan several months in advance.
Medical Bills & Personal Bankruptcy: An Unfortunate Trend
Even though the enrollment deadline for healthcare under the Affordable Care Act just passed, it is clear that medical bills are still a big problem for many Americans. According to NerdWallet, one in every five Americans will have difficulty paying medical bills this year. Medical bills are actually the leading cause of personal bankruptcy filings, once individuals and families have used savings, credit cards, or attempted to refinance their homes.
Debt Coping: What to Do When a Child Passes Away
Going through the process of grieving a child is devastating for any parent. However it can be even more challenging to move on when private student loan debt follows that individual after the child has passed away.
While most federal student loan debt is wiped out when a person passes away, private lenders may try to go after family members. If you are trying to cope with this situation, you may have a way out: bankruptcy.
Just ask Francisco Reynoso of California. His son died in a car accident in 2008, but Reynoso was on the line for six figures of student loan debt for which he had cosigned. With an income of just $21,000 per year, Reynoso was trying to grieve the loss of his child while avoid collection calls and demands from private lenders.
The Cost of Care: Helping Elderly Parents
Some baby boomers have done advance planning to help those who will care for them in their old age by buying long term care insurance or setting aside specific funds. A growing number of aging individuals, however, are facing mental and physical challenges by relying on their family members. Research shows that 40 percent of U.S. adults are helping to care for a family member with a major health issue. The cost of caring for elderly parents can easily spin out of control, but you can get on top of your finances again through bankruptcy.
According to the National Alliance for Caregiving and the Metlife Market Institute, adults taking care of elderly parents face an increased risk of poor health themselves and a tendency to shortchange their own finances in the process. Poor health can lead to individual medical bills for you and using your savings to help a family member can lead to reliance on credit cards or loans to purchase basic necessities.
Property Exemptions for Bankruptcy in Texas
Losing your job or getting expensive medical bills can have devastating effects on your budget. Without ample savings, it can be hard to make monthly payments, and eventually you may lose your car or even your home.
However, bankruptcy can stop foreclosure, repossession and wage garnishment through selling property or reorganizing existing debts if you are earning income. However, filing for bankruptcy does not mean losing all your worldly possessions. When filing your paperwork, you may choose to use either federal exemptions or the exemptions set out by the statutes of Texas.
Both the Federal and State exemptions allow the debtor to protect equity in their primary residence. This is called the Homestead Exemption and it does not provide any protection to rental or investment properties. Under the federal exemption, you can shield up to $22,975 of equity from a bankruptcy trustee. The homestead exemption in Texas is not limited by the amount of equity in the home, but the size and location of the property. It cannot exceed an acre if it is located in a populated city, village or town. In rural areas, the exemption can be as large as 100 acres.
Career Athletes and Bankruptcy
The 2014 Winter Olympics has just wrapped up and all eyes were on the incredible athletes from all around the world who have spent their life training for the big event. Although the Olympics is a celebration of all their hard work, it’s easy to underestimate the amount of time, energy, and financing that goes into preparing an athlete. Whether it’s the Olympics or professional sports, there’s a lot of hard work to get to the top. Some athletes struggle financially before or after their sports career, many even filing for bankruptcy.
The list of professional athletes who have gone bankrupt is longer than you might think. There are several reasons why they get there, but a primary one is poor financial planning or a series of hardships that threw them off course. Especially for younger athletes, not knowing how to properly manage their money can be a challenge too great, leading them to financial struggle mere years after their wealth accumulates.
The Link Between College and Credit Card Use
For many families, education is one of the biggest investments that parents will make for their children’s future. Even when some steps are taken to plan for this costly life goal, some expenses can creep up, leading parents and students to rely on credit cards to help. When credit card debt grows out of control, sometimes bankruptcy is the only option to get a fresh start.
According to Sallie Mae, between 3 and 5 percent of parents used credit cards to help pay for educational expenses for the years 2009-2013. In 2013, the average college student spent about $3,156 on their own credit cards, too. Whether it’s tuition, books, transportation, or other expenses, this credit card usage can add up.
The Negative Physical Impacts of Financial Stress
Many may have anxiety when thinking about bankruptcy and it’s possible impacts, but it’s important to realize that constant financial stress in your life can lead to negative ramifications, too. When you’re dealing with a mountain of financial problems, that influence can rub off on your physical well-being.
If you have been feeling like you’ll never get on top of the finances, you need to consult with a bankruptcy attorney to learn more about your options.
If you’re short on cash, you're more likely to put off getting treatment or medications for an existing health problem. This can build up, and when coupled with the worrying associated with being behind on your bills, can start to cause chronic health issues for you. You might be avoiding medical treatment because you have past due bills, too, or even feeling guilty because you can’t afford to invest in some kind of care, like braces, that your children might need. This can manifest as anxiety in your everyday life.
Contact Our Firm
The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.
I have read and understand the Disclaimer and Privacy Policy.
Call Today for a FREE Consultation
210-342-3400
