Who can help?
If you’re a Dallas resident with lots of debt, you need an experienced bankruptcy lawyer who can put your hopes and dreams to work. You need someone with experience both in and out of the court room, someone you can ask many questions and always get clear answers, and someone who won’t charge you thousands extra if your case takes longer. That’s hard to find, but there are many talented bankruptcy lawyers who enjoy helping Dallas residents file bankruptcy. It’s not to say which one to hire, but base try to base it on experience more than rock-bottom prices.

Why Dallas Chapter 7?
Chapter 7 bankruptcy is really where your “fresh start” comes into play. The big benefit here for Dallas residents is being able to discharge tens of thousands (if not far more) of credit card and medical debt. Medical debts are, not surprisingly, the main reason for filing bankruptcy.

Say for example you and your husband are both working low pay jobs, have no health insurance, and have little extra income. You are in debt with credit cards and then one of you gets sick or hurt and has to go the hospital. It’s a nightmare scenario, but one we hear quite often. You will likely be in debt for thousands of dollars of medical bills, and have few means to pay them off. In terms of eliminating credit, medical, and mortgage debt, Chapter 7 bankruptcy is the answer. It technically liquidates your assets to pay off debt, but most lose little if any assets when filing. In some cases, Chapter 13 can be better for Dallas residents.

Why Chapter 13?
Chapter 13 bankruptcy is less a discharge and liquidation, more a “pay what you can” repayment plan. Some debts you have to pay in full, some debts you can pay fractions of, and to pay these debts you typically get 3-5 years. It doesn’t sound as good, but with Chapter 13 you can avoid foreclosure, unlike Chapter 7. Chapter 13 can save your Dallas home from foreclosure, but only if you file before the bank files the paper work. If you file bankruptcy before, the bankruptcy judge puts what’s called an “automatic stay” on all your assets and debts. You can then rework your payments in the repayment plan, paying what you can afford. If you have some income coming in and you have assets you fear losing, Chapter 13 is smart.

Choosing a Form to File
So if you have more unsecured debt, debts like credit and medical bills, Chapter 7 can be better for you. It discharges you from debts in a matter of months. If you have a lot of secured debt such as a mortgage, car, and other property, Chapter 13 is good because you can repay portions of your debt over time. It’s not a race to the finish line when choosing which form of personal bankruptcy is right for you, but it’s good to know in case you run into medical problems, credit debt, or fear your Dallas home going into foreclosure.

Price?
Let’s get right to the most important question you likely have: how much will it cost? Bankruptcy is not free, but it need not be a costly affair for you. A good Texas bankruptcy lawyer will charge from $1,000 to $2,000 for most Chapter 7 and Chapter 13 cases. Some are willing to negotiate with you via a payment plan. Obviously you are not filing bankruptcy simply because you have money. If money is an issue, ask for their basic rates. Most lawyers have set rates, especially bankruptcy lawyers.

Experience?
Experience really is more important than price, mainly because of the value an experienced bankruptcy lawyer has for your case. Say you’re in danger of losing your $150,000 home you and your family have put a lot of time and capital into. In this case, filing bankruptcy may prevent the bank from taking it. That’s much more important than a minor difference in rates. A lawyer less capable, and you’ll know usually by court room experience, may do more harm than good. In many cases they charge less because they lack the experience to truly help you, or lack the time.

Time?
You may get a lawyer real “cheap” only to find they spend little if any time researching your case, preparing for court, and helping you discharge the most debt. Bankruptcy requires a lot of time and effort. True, the actual court room process is short, but any mistakes in showing debts and assets, any questions from the creditors, or at worst any laws broken can endanger your discharge.

Asking Questions
The old saying is the only bad question is the one you never ask. Well, you’ll know immediately if a bankruptcy lawyer know his or her stuff. Texas is little different than other states: good lawyers answer complex questions involving the law. Good bankruptcy lawyers can put you at ease. In order to hire the right one, ask as many questions as possible, maybe even in your first consultation. It’s a good way to hire a Texas lawyer.

Making the Call
You know some rates, some experience points look great to you, some communicate well, and others miss the mark entirely. Who do you hire? Don’t go with your gut on this one. Factor in price, it’s important. Who has the most value to your case and can put the most time into your case? Who seems easiest to work with?

In a Texas Chapter 7 bankruptcy, you’ll be discharged from debt in a matter of months. In Chapter 13 bankruptcy, the process takes longer. In either case, your lawyer needs experience both in and out of the court room. In the court room, they protect your rights. Outside the court room, they do the same, keeping creditors from hassling you and answering all your questions. At least the best ones do.

In Chapter 7 bankruptcy, saving money is less of an issue. You are discharging your debts and losing assets. In Chapter 13 bankruptcy, however, you are supposed to pay all extra money to your bankruptcy trustee.

Really, that doesn’t sound fair. Of course, you do have to follow the laws – you can’t just ignore them. But it’s not unreasonable to save some money for other expenses.

A Chapter 13 bankruptcy takes 3-5 years, much longer than a Chapter 7 bankruptcy which only takes a few months. If you cannot save money for that long, it will be hard to actually get that fresh start. But look at the advantages of Chapter 13. For Texans, it can save your home from foreclosure. It can stop a car repossession or the taking of other assets. If you owe $100,000 in debt, you can quite often pay a  fraction of that over a long period and come out free of most debts.

The problem with saving money during bankruptcy is you’re supposed to be broke. Your supposed to have little if any money. That too is unrealistic. Quite often those who file Texas Chapter 13 bankruptcy do so not because they have no money, but because they don’t have the necessary income to pay off all debts. You might owe $100,000 on your home and fear foreclosure, owe $5,000 on your car, and owe thousands more in medical and credit card debt. You also have a job which pays enough for you to avoid Chapter 7. In this case, saving money is necessary.

If you come into new debts you know you cannot afford, you can suspend your Chapter 13 debt repayment plan in order to pay off these debts. You might experience damages to your home or car which you must fix, and that’s why the laws are like this.

Can you save money in Texas bankruptcy? If you have disposable income, it may be difficult. At this point, you need to talk to an experienced Texas bankruptcy attorney. If you’re unsure of any laws, an attorney is your best source for information. Also, when you need to suspend payments on your Chapter 13 bankruptcy, it’s your attorney’s job to help with this.

If you have no attorney yet, many offer free consultations.

This blog guide will show the basics on what can of help you can get, how to get it, and how to get a new beginning financially.

Filing Help
There are many places to get help just when you’re thinking of filing. This blog is one. There are many articles online. Perhaps the best are run by the government, where you can stay up to date on any changes in the laws. You may wonder if you’re eligible for a Chapter 7 bankruptcy, or how a Chapter 13 bankruptcy can help. Government information sites, major article sites and blogs like this one, and a consultation with a lawyer can help.

Asking Questions
There are no bad questions when it comes to bankruptcy. In fact, the more questions you ask, the better. Ask a bankruptcy lawyer, ask others who’ve filed, read blogs like this one, look on government sites– your options are many. You may wonder how much this whole process costs; a lawyer may be best for that. You may wonder how much the filing fees are, for example, or how much a bankruptcy lawyer will typically charge. Ask as many questions as possible. There are many who are willing to help.

Hiring A Lawyer
Your lawyer is perhaps the biggest asset you have. Say you need a Texas bankruptcy lawyer. You can look online, perhaps on blogs and sites like this one, make some calls, and see who has real experience and a fair rate. You want a lawyer willing to take the time to answer all your questions, who won’t overcharge you, who will be honest with you, and will help you successfully file. Filing bankruptcy is not something you can do alone; hiring a bankruptcy lawyer is always a must unless this is your profession. A good Texas bankruptcy lawyer can help you save the most assets, discharge the most debt, handle any court room problems, and also help completely stop any creditor harassment you may be having.

Saving Time and Money
Bankruptcy does take time: Chapter 7 takes several months in most cases, while Chapter 13 takes much longer, typically 3-5 years. This is because Chapter 7 effectively discharges most of your secured and unsecured debt; you start fresh in a matter of months, potentially saving thousands of dollars and a lot of legal hassle. Filing Chapter 13 is quite often about saving the time and money you put into your home and car; you can keep these if you follow a payment plan.

Succeeding
Getting bankruptcy help does lead to success. After all, it can save you tens of thousands of dollars, or allow you to keep your most valued assets while buying you time to catch up on bills. The best strategy for success is to ask as many questions as possible, to hire the right bankruptcy lawyer, and to file the right form of bankruptcy for you.

Say you have $10,000 in credit card debt; you have options of filing bankruptcy, to negotiate with creditors yourself, and another option of taking no action at all – not paying on debts, not trying to protect assets. It rarely works. This blog guide will help you see if doing nothing actually works for you.

Your Options
As stated above, one option many take is to file bankruptcy in order to discharge the debt with Chapter 7 or pay on the debt with Chapter 13. You can also negotiate with creditors on your own, contacting them and negotiating a rate. There are many other options, but doing nothing is quite common, where you decide not to act on the problems because you have little if nothing to lose.

Choosing Bankruptcy
If you file Texas bankruptcy, your options are limited to Chapter 7 or Chapter 13 as an individual. Chapter 7 is the most common option for anyone with sizable debts. Chapter 7 will discharge almost all your debts, giving you a fresh start financially. Chapter 13 is less common, but allows you to keep more assets in some cases than Chapter 7; it’s also an option if you make too much money for Chapter 7.

Negotiating with Creditors
Technically, you could choose a debt counseling agency to pay on some of your debts, but they do nothing you cannot easily do yourself. You can contact your creditors and explain to them you want to start a payment plan; here you have nothing to lose, but if you miss a payment the plan might stop. Quite often they will be willing, because if you’re forced to file bankruptcy they may get nothing. However, sometimes you simply cannot afford to pay them anything close to the money owed. You are also not legally protected if you miss a payment.

Doing Nothing
Our final option, doing nothing, occurs when you decide to take no action to pay debts. It’s actually used by some in Texas and across the country. Why? If you have no assets to be taken, if you have little to no income coming in, creditors have few option in getting money back from you. The only problem is, few of us have nothing. Any assets of value can be taken. If you have a job or outside money coming in, it can be taken. That’s the key problem with doing nothing: it only works when you have nothing.

Choosing One
Bankruptcy is not always the best option, but in many cases the advantages far outweigh the downsides. At least negotiating with creditors is preferable to doing nothing as well. In the end, it’s up to you. If you need some guidance, an experienced Texas bankruptcy lawyer can guide you in the right direction.

If you’re eligible, you will go through the process of filing again. This means you’ll be hiring a bankruptcy lawyer, taking a credit-counseling course, take a means test for Chapter 7 or Chapter 13, and more.

What is the means test?
The “means test” is the same test you took in your first bankruptcy. You may wonder what it does. A means test determines eligibility for Chapter 7, or with Chapter 13 it helps create a debt repayment plan. If your income is the same as it was when you first filed Chapter 7 bankruptcy, you can most often file again. The means test is based on the Texas median income for Texas residents; if you’re above, you’re not eligible, but if below you are eligible.

How to Handle Creditors
As with your first bankruptcy, you will be informing all your creditors of your second bankruptcy. This has the advantage of again stopping any calls or notices you’re getting. With Chapter 7, creditors have the right to appeal your discharge of debts; in Chapter 13, they are quite often getting most of their money but if you are behind in mortgage payment, it can save your home.

Your Texas Lawyer
Should you hire the same lawyer or a new one? This is a common question. You likely already know what you want in stopping harassment, what debts you want discharged, and what benefits come from filing bankruptcy. In many cases, you may be unhappy with your bankruptcy lawyer, but kept him or her to save some time. In other cases, your lawyer may have been very effective and helpful, but had so little time to help you that you want a new one. You are allowed to hire a new lawyer. It’s important not to think you can do this alone simply because you filed once; no two bankruptcies are exactly alike. Hire professional representation so this process can be simple and rewarding.

This blog post points out some facts which may help you in your bankruptcy and foreclosure process. What numbers do you need to know? How can you avoid foreclosure? Let’s find out.

Numbers Which Help
According to recent studies, Texas has avoided the economic crisis caused by a significant housing slump with no true secrets. Property values have lowered, foreclosures have increased, but much less so than other states. Sales and construction have indeed slowed, but more single family homes are being bought again. If you look at the single building homes purchased in May of 2009 and compare them to May 2010 you’ll see that more building permits have been issued. This is more significant than it may sound: with families buying homes again, it portends to an economy ready to grow. Homes sales have gone up, multi-family building permits are up, and the actual value of single family homes has decreased by less than half a percent.

Foreclosures have been different for Texas. In 2006 and 2007, the beginning of our housing crisis, Texas had some of the lowest rates of foreclosures of all states. In fact, foreclosures didn’t start to really become noticeable until 2008. Foreclosure rates have increased steadily since 2008, but not as bad as other states.

Where are we at today for foreclosures? Some states are at about 1 in 100 mortgages going to foreclosure – very scary numbers. However, foreclosures for Texas are very low in comparison, being about than 1 in 850 homes going into foreclosure. That’s an incredible difference between states like Nevada, whose foreclosure rates are less than 1 out of every 100.

What This Means To You
This all does not mean we are out of the problem yet. The Texas median income for families has gone down some, as have home values. Foreclosure is still a big danger. However, there are many ways to avoid foreclosure, namely filing Chapter 13 bankruptcy. The problem is that many fail to file for bankruptcy in time. If you wait too long, you risk losing your home. If, on the other hand, you file for Chapter 7 bankruptcy, it quite often fails to save your home unless you can come up with the money. For homeowners fearing foreclosure, contacting an experienced Texas bankruptcy attorney is a very good first step.

You may lose your home through foreclosure, unless you act fast, hire a lawyer, and file bankruptcy.

You may lose your car, but in both Chapter 7 and Chapter 13 bankruptcy, you rarely lose anything.

Bankruptcy does not stay on your credit forever; it stays for 10 years via Chapter 7, and 7-10 years on Chapter 13.

You will in fact be able to get a credit card, thereby giving you the opportunity to rebuild your credit so you can get a loan.

Rebuilding Credit – What Got You Here
It’s important to realize before you even file bankruptcy why you’re filing. It can seem like a win-win situation, but be mindful of what happened to get you here. Sometimes you are not at fault, but more often than not there were some mistakes. Maybe you lacked insurance and were hurt. Or you charged up some credit cards. Or you bought beyond your means, investing in a home and later losing your job. Whatever the case, don’t dwell, but be aware.

Opening a Checking or Savings Account
One key step in proving to lenders and credit card companies your financial means is to open a checking and/or savings account. This is a small but important step in showing you can handle money, you can save money, and you can keep an account open.

Getting a Credit Card and More
One myth of bankruptcy was is that it will be impossible to immediately get a credit card. In fact, you can, namely by getting a secured credit card. A secured credit card is one of the best ways of rebuilding your credit. You pay a set amount, the value of the card is what you pay, you make payments on time, and  you can get the money back. You might also consider getting store credit cards, perhaps at a major store you frequent. These cards are another way to improve your credit scores with limited risk – if you pay on time.

Staying On Budget and On Time
Rebuilding your credit after bankruptcy does take some time. It may not all go as planned. You may lose your job, get another medical bill, or find out you owe back taxes. There are many cases where it takes time and patience, sometimes even a second bankruptcy, to truly start over and rebuild. However, if you can open a checking account, get a secured credit card along with store credit cards, and pay bills on time, you will soon be able to get loans and regular credit cards.

This guide shows you where to file, how to file, and when to file bankruptcy in Arlington Texas.

Where to File
If you live in Arlington, or in the Dallas and Fort Worth area, you’ll be filing at the Northern District of Texas Bankruptcy Court. This governs the entire area. Your Chapter 7 bankruptcy can quite often be accepted and your debts discharged in a matter of months. While Chapter 13 bankruptcy is a longer process, you can still receive immense benefits.

How to File Bankruptcy in Arlington
You need a lawyer and a plan, then you need to follow the guidelines for filing in court. An experienced  Texas bankruptcy lawyer can be invaluable. The courts require you to take a credit counseling class, which is short, and then require you to prove eligibility. Not all Texans are eligible for Chapter 7 bankruptcy, the most common form. If you have hundreds of thousands in unsecured and secured debts, you may not be eligible for Chapter 13 bankruptcy either. This is where a lawyer can help.

A Texas bankruptcy lawyer will walk you through this process for a very nominal fee. An experienced lawyer will cost you some money, but when you compare it to the benefits of filing bankruptcy – discharging thousands in debt with Chapter 7; saving your home and other assets from being taken in Chapter 13 – the advantages of hiring one are clear.

The credit counseling class is just a federal requirement, and only takes about an hour. You will also need to take a debtor education course in order to get a discharge.

What documentation do you need to file? This is all your financial records: recent bank statements, recent bills from each creditor, payment proof for your car, real estate, and student loans, receipts, and any bills for purchases from the last year. There is more, but your Texas lawyer can walk you through these steps.

When Do You File?
When should you file bankruptcy? This all depends on your current situation. Sometimes filing bankruptcy in Arlington is not your best option. You always have other options, it just depends on where you are at financially, what you can and can’t afford, and how far into collections you’ve gone. For example, if you have missed several mortgage payments and fear losing your Arlington home to foreclosure, you need to take action by filing Chapter 13 bankruptcy, so you can keep it. If you just got a high medical bill, you have no insurance, and you have no job or a low paying job, Chapter 7 bankruptcy is quite often your best option.

Each case is unique. Hire an experienced Arlington bankruptcy lawyer to find out more.

You Need a Lawyer
Your first step in filing Dallas bankruptcy is to hire a lawyer. There are many bad things said of lawyers – they’ll spend a few hours on your case and charge you thousands; they’ll take no action on your case and delay it – but it depends on who you hire. The owners of this blog are professionals in Texas bankruptcy law. It’s easy to hire those who promise big results for a small price, but remember this is a business. You need a lawyer who charges reasonable rates, who has experience, who will spend a reasonable amount of time on your case, and who’ll take action and not delay your case.

You Need Time
Before you take action, you need to set aside time to go through this case. Why? Bankruptcy is a complex field – and you need to understand your options in order to file successfully. To put it another way, if you go into a job interview when you’ve been out of work for 2 years, you don’t just wing it. When your financial future is on the line, start asking questions early.

You Need Action
In many cases, those who file wait too long in making certain decisions. This can be hiring your lawyer, choosing what form of bankruptcy to file, stalling on filing while your mortgage payments fall behind, or actually spending money you don’t have. Let’s take one of those and go further. If you wait too long to file bankruptcy, and you have a home in danger of foreclosure, once the files are in you are going to lose the home in most cases. If you take action, contact a Dallas bankruptcy lawyer, and file, this problem is quite often solved.

Know The Rules
Are you eligible for Texas Chapter 7 or Chapter 13 bankruptcy? You need to know this immediately. This blog highlights on many occasions the eligibility requirements for Chapter 7 and Chapter 13 bankruptcy – each are unique for Texas residents, and depend on your income and current debts.

Know Your Rights with Creditors
If creditors are harassing you, know your rights. There are options other than filing bankruptcy when it comes to stopping creditor harassment, but bankruptcy is one effective way to end it. If you file bankruptcy, simply tell your creditors that. If they call again, or continue calling, refer them to your lawyer. If, on the other hand, you don’t want to file bankruptcy, you can write the creditor a letter asking them to stop contacting you.

Know There Are Other Options
In some cases, filing a Dallas bankruptcy may not be in your best interest. And a good lawyer will tell you that. There are times when you have too much too lose, you’re not eligible, or you can solve your financial problems in other ways. Just remember that bankruptcy can be a very effective option for eliminating debt, keeping major assets like a home and car, and gives you a fresh start financially.