Saving Money on Texas Chapter 13 Bankruptcy
July 19, 2010
You can’t save any money when it comes to bankruptcy, right? Actually, there are ways to save on expenses involved. While this blog guide is not about actually putting money into your savings, it can help you save some reasonable amounts of money so you can use them for needed essentials. Money is the prime problem many have when filing for bankruptcy, so of course saving money when filing, on paying debts, and on hiring an attorney is paramount. Here is some help.
Advantages of Texas Chapter 13
For Texas Chapter 13 bankruptcy, you may wonder how filing can help you. Clearly, Chapter 7 has quite an impact on your debts. If you can discharge $100,000 in debt for a fraction of it, that’s an easy decision.
Chapter 13 is different. Texas home owners and those with a lot of assets quite often are in danger of losing them when filing Chapter 7. Why is because your trustee is designated with selling assets to pay for debts owed. In most bankruptcies, you lose nothing, but the more you have the more you might lose.
Chapter 13 bankruptcy can stall if not stop a foreclosure, protect other properties from being taken, help you keep your car, and give you a fresh start for often a smaller amount than owed. With the help of a Texas lawyer, you can reap the rewards of a successful bankruptcy.
During the Bankruptcy – The Long Chapter 13 Plan
Chapter 13 does take some time, typically 3-5 years. That means saving money during bankruptcy is crucial. You can’t save money on the filing fees, $274 to file, but you can save money in terms of your assets. Consider how much time and money you put into your home and/or other properties; consider how much your car is worth; and if you have other valuable assets in danger of being taken, you likely want them too. You can potentially save thousands by stopping a foreclosure, keeping your car, and protect other valuables you still owe money on.
Chapter 13 is advantageous because in Chapter 7 you liquidate. You rarely lose anything in Chapter 13.
Attorney Costs
Yes, you can save money in your Chapter 13 bankruptcy by hiring a reasonably priced lawyer. In rare cases do you need to spend many thousands of dollars. Typically, a professional, experienced attorney charges $1,000 to $2,000 to help you. Consider how much you’ll save by filing Chapter 13; if you have a $200,000 home, a Texas bankruptcy attorney can ensure you keep it.
After Bankruptcy
After your Chapter 13 repayment plan is done, you are free of most all your debts. You are discharged much like a Chapter 7. The only difference is you paid some or all of the debts off. Now it’s time to start budgeting and cutting down on expenses so you can really start fresh. The biggest problem many have is in failing to save enough money to avoid having to file bankruptcy again.
Filing Dallas Chapter 13 Bankruptcy
June 19, 2010
If you file bankruptcy in Dallas Texas, you would go to the Northern District of Texas. But before you do, there are some things about filing Dallas bankruptcy you should know, especially if you plan on filing for Chapter 13. This post can help.
Eligibility for Texas Chapter 7
You may also be eligible for Chapter 7 bankruptcy. Most all citizens are eligible for Chapter 13, unless you have hundreds of thousands in debt. If you want to file Chapter 7, you must be be below the median income for the state. Here are the numbers.
1 Person – Annual Income Less Than $38,801
Family of 2 – Annual Income of Less than $55,660
Family of 3 – Annual Income of Less Than $59,011
Family of 4 – Annual Income of Less than $66,145
Add $7,500 in most cases per any additional family members.
If you make less than these numbers, you may consider filing Chapter 7. It can be very helpful in cases where you have a lot of debt you simply cannot afford, such as credit, medical, and mortgage debt.
Why Chapter 13?
If you’re a Dallas resident considering personal bankruptcy, you may wonder why you would not choose Chapter 7. Clearly this form can help in ways Chapter 13 cannot. In some cases you are not eligible. In others, you do not want to lose your home. Dallas Chapter 13 puts into motion a plan for keeping all your assets. If you fear foreclosure on your home, Chapter 13 is a far better option in most cases (though you can set up a payment plan for your home with Chapter 7 by working with your trustee). What happens is the moment you file, a judge will put an “automatic stay” on your home, stopping any foreclosure proceedings. If you file early enough, before the papers are filed, you don’t just stall the foreclosure: you can completely stop it.
Also, if your problem isn’t credit or medical debt, Chapter 13 can be easier. It’s a 3-5 year plan where you pay back debts, but these are designed to be affordable. If you have no job and little to no income coming in, Chapter 7 is better. If you have a job and some income, a Chapter 13 debt repayment plan can be very beneficial. It just depends on the kind of debts and assets you have.
How do you file?
You typically hire an attorney first, then file with the court. The fee for filing Chapter 13 bankruptcy is nominal, $274. Lawyer fees cost more, but are designed to be affordable. After all, you’re not filing bankruptcy because you’re rich. Most Texas bankruptcy lawyers charge from $1,000 to $2,500 to handle a case. This comes with many benefits. They can help you fill out documentation, successfully submit to the court, represent you in court, help with your debt repayment plan, stop creditor harassment, give tips on keeping all your assets including your home, and also advise you on how to avoid future bankruptcy.
The First Step
Are you ready to file for Chapter 13 bankruptcy? Unsure if it’s right for you? It takes some time to make the decision. The important thing is to not make it alone. You can consult with an experienced Dallas bankruptcy attorney today to see if Chapter 13 is best for you.
Making the Texas Bankruptcy Decision
June 17, 2010
Still not sure if filing bankruptcy is for you? Clearly there are many ways to look at it, advantages and disadvantages to filing, and the fear it can bring. For one, bankruptcy is a solution, a tool designed to help. It can be a life changing event, but for the good. For one, some think that by filing, you’re giving up all your assets, you’re ruining your credit, or even worse, that you’ll never be free of it. There are many other myths too, but remember the earlier point, that bankruptcy is a tool, and you can be free of this.
This post will help you make decisions beyond the myths, to help your finances and give you a fresh start.
Myths of Bankruptcy
For Texas bankruptcy, common culprits are bills, debts, and cards made of plastic. The myths abound. You won’t have to pay back taxes or alimony (you will). Bankruptcy will ruin your credit (it won’t). That you’ll lose all your assets with Chapter 7 (you rarely lose anything). That you won’t be able to afford to pay back debts, even with a Chapter 13 repayment plan (many can). Bankruptcy won’t give you a bad name, won’t make it impossible to get a loan, and you certainly won’t lose all your assets. Remember this is a tool, and over 1 million use it every year to successfully discharge debt, save property, save money, and save time.
Advantages of Bankruptcy
This all depends on the form of Texas bankruptcy you want to file. We go over Chapter 7 and Chapter 13 many times on the Higgins and Associates blog. The biggest benefits for each is simple. Chapter 7 can discharge pretty much all your debt. Chapter 13 can pay it back, but save assets like your home from being lost.
There are other benefits. In both forms of personal bankruptcy, you can be free of creditor harassment. In both forms, you can successfully rebuild your credit; if it’s already bad, you can get a fresh start building it by handling your credit correctly. And if you choose to file Texas personal bankruptcy, you need not live in fear of the repo-man or your home being taken.
Disadvantages of Bankruptcy
Bankruptcy will stay on your credit for 10 years. It will be hard to get a major loan for some time, such as a new mortgage, but it’s more than possible. You won’t discharge all debt with Chapter 7, and sometimes your creditors can appeal your filing. For Chapter 13, you are still liable for debts: if you cannot pay at least some amount, you may start running out of options.
Making the Choice
If you need help making the choice, you don’t call your creditors. You call someone who can help, like an experienced Texas bankruptcy attorney. You first should research how bankruptcy works, what you’re eligible for, what debts you can discharge, how long the process takes, and what’s expected from you if you want to keep your assets. These decisions are better made with an educated mind.
Asking for Help
Asking for helping is always tough, but when making a decision on bankruptcy, it’s simply a must. You cannot file for Texas bankruptcy without some guidance of a professional. It’s worth the time and money to search for and hire a lawyer, because he or she will actually save you from major mistakes, and save you money by making the bankruptcy work for you.
Now that you’ve finished, it’s time to make that big choice. Remember not to make it alone.
Property You Can Keep After Texas Bankruptcy
June 11, 2010
Common bankruptcy questions we hear include worries on losing major assets such as a home and car. You’re right to be concerned about these things, as you can lose some assets when filing bankruptcy. However, most bankruptcy filers lose absolutely nothing.
You have to look at what got you into this situation, what want to keep, and what you’re willing to lose. Technically, you can keep major assets if you can afford them. You can hold on to your home, vehicle, and valuable assets such as jewelry, even in a Chapter 7 bankruptcy. First let’s go over what you can legally keep, what you may lose, and then how to keep the most assets.
What You Can Keep
If you’ve lived in Texas all your life, or even just a few years, you are legally able to keep the majority of your assets in a Chapter 7 bankruptcy. Chapter 7 is where you file to discharge debts, with the point being some of your assets may be sold to pay back creditors; in other words, you liquidate items to pay debts. Again, it’s rare you actually have assets sold, but a trustee appointed by the bankruptcy judge can do precisely that by law.
Exactly what can you keep?
-You can keep any equity you have in your home, as well as all home furnishings up to $30,000.
-You can also keep jewelry and heirlooms up to $7,500.
-Bicycles, guns, and sporting equipment are usually exempt.
-You can keep your car usually, sometimes more than one if multiple family members have cars and depend on them.
-Social security benefits are always exempt, as are retirement accounts.
By law, child support and back taxes cannot be discharged in personal bankruptcy. If you’re hoping to discharge these debts, Chapter 7 simply will not work. You are legally bound to pay them. But as you can see, the majority of your major assets can be exempt.
Advantages of Texas Chapter 7
Most are eligible for Chapter 7 bankruptcy, but if you make a lot of money, you may be required to create the debt repayment plan involved in Chapter 13. Chapter 7, as earlier noted, discharges debts and is far more common than Chapter 13. You can in most cases keep your home. If any assets such as your car or home are not exempt, you can legally pay the court appointed trustee in order to keep it; that means you can pay on certain debts. You just have to have the money do so.
Chapter 7 bankruptcy has the most direct effect of any bankruptcy filing. It can eliminate the majority of your major debts and give you a fresh start. It only takes a few months to go through. And an experienced Texas bankruptcy attorney in your area can help with topics such as exempt and nonexempt assets.
Advantage of Texas Chapter 13
Chapter 13 is less effective in removing your debt obligations, but you can use it to save assets. In some cases, Texas filers who make more than the state average are not eligible for Chapter 7. Don’t worry: Chapter 13 has its own advantages. It’s the best way to stop a foreclosure before it happens. As long as no foreclosure papers have been filed, you can file Chapter 13, a judge will put an automatic stay on your home, and you can start making more affordable payments on it. It’s the same with all your assets. Nothing will be sold. You will create a debt repayment plan in order to make these debts affordable.
Keeping Assets – The First Step
You need an experienced Texas bankruptcy attorney to look over your situation. He or she can go over eligibility, exempt and nonexempt property, help you keep assets with Chapter 7, and help you save your home from foreclosure with Chapter 13.
Choosing Forms of Personal Bankruptcy in Lake Worth Texas
June 9, 2010
Lake Worth may be that little Texas city compared to Dallas, but when it comes to financial problems, it really doesn’t matter. Unfortunately, Lake Worth bankruptcies have been high in recent years. Recent research reports that the median income for Lake Worth residents is at about $40,000 a year. This is important because of the rise in bankruptcies and nationwide in past years.
You lose your job, you don’t have insurance and get a major injury with medical bills looming, or your home is about to go into foreclosure. What do you do next?
For personal bankruptcy, your options are Chapter 7 or Chapter 13. If you want to eliminate thousands in debt because you have little to no income, Chapter 7 is wise. If you have an income but want to rework your payments, Chapter 13 is very smart. Let’s go into the details even more.
Chapter 7
Chapter 7 bankruptcy is a liquidation. You file with Texas bankruptcy court, paying the fee of $299, and then a trustee is appointed to handle your case. This trustee will be in charge of liquidating some if any nonexempt assets you have. That means the trustee will sell your possessions to pay back your creditors. In most cases, you don’t lose anything.
You can discharge much of your debt, including credit card, mortgage, and medical bills. You cannot discharge taxes, alimony, child support, and time other debts.
Chapter 7 is smart if you have little income and sometimes if you have little assets. It only takes a few months to go through,and you get a fresh start financially. The majority of Lake Worth bankruptcies are Chapter 7.
Chapter 13
Chapter 13 bankruptcies are used less in Lake Worth and nationwide. About 25% of personal bankruptcy is Chapter 13, while 75% is Chapter 7. Chapter 13 is a debt repayment plan, not a discharge of debt. For example, if you have $5,000 in credit card debt, you will be reworking payments, but still paying for them. That’s the main reason more Lake Worth residents file Chapter 7. However, Chapter 13 can save your home from foreclosure; Chapter 7 cannot.
Foreclosures
It works like this. If you miss a few payments for your Lake Worth home, and foreclosure is on the horizon, you can file Chapter 13 and if successful a judge will put an “automatic stay” on your home. The lender cannot foreclose your property. If you’ve owned this home for years and love it, and if you’ve put a lot of time and money into it, Chapter 13 can effectively save it.
Credit Cards
On the other hand, if credit and medical debt is your main problem, Chapter 7 is better. It can also discharge mortgage debt, but you’ll typically lose the home in a matter of months unless you can afford to pay on it separately.
Creditors
If creditors are harassing you night sand day, both forms of personal bankruptcy can effectively stop it. So can an experienced Lake Worth bankruptcy attorney.
Lake Worth Bankruptcy Attorney
Does some of this sound like a textbook on legal information? That’s because it’s complicated to file bankruptcy. You need to hire an Lake Worth bankruptcy attorney to answer questions, solve problems, and help choose between Chapter 7 and Chapter 13.
How Much Will Texas Chapter 13 Cost
June 3, 2010
Texas Chapter 13 bankruptcy is very advantageous, but not your only solution. Actually, more file Chapter 7 bankruptcy than Chapter 13, about 3 in 4 filing with the former. However, Chapter 13 bankruptcy has some clear advantages, especially if you make enough money.
1-Most are eligible for Chapter 13, with only hundreds of thousands in debt stopping some from filing.
2-You can save your home from foreclosure.
3-You can keep other assets.
4-You can rework bills so you can afford them.
5-You can avoid wage garnishments.
6-Filing is cheap.
How much does filing really cost? Actual court costs are $299 for Chapter 7 and $274 for Chapter 13. If you file jointly with a spouse, that’s a one time fee to pay the local Texas court.
You should also consider hiring an experienced Texas bankruptcy attorney. Hiring one has many advantages.
1-Save time in filing.
2-Correctly file with court.
3-You can get counsel on whether you should choose Chapter 7 or Chapter 13.
4-An attorney can stop all creditor harassment
5-An attorney can help save your home from foreclosure.
6-And an attorney can save you money by helping to keep other important assets like your car.
How much does it cost to hire an experienced attorney? For Texas bankruptcy, the rates vary depending on the case. Chapter 13 is a longer process than Chapter 7, but once you appear in court, the plan is accepted, and you start paying debt, it’s very simple. An experienced attorney will charge from $1,000-$2,000 in most cases to help you with bankruptcy. If your case is more complex, it may require added time.
Chapter 13 bankruptcy can save you money in many ways. If you have been paying on a home for years, and you’ve kept it up, all that time and money could mean nothing if foreclosure goes through. It’s the same with other assets, such as your car. If you make too much money, you can’t discharge debts with Chapter 7. But Chapter 13 allows people who make more if not much more money to rework how they pay back debts.
The process takes 3-5 years, but it’s more than worth it. Act now if you fear foreclosure, as by federal law if the foreclosure is begun, you cannot stop it. Hire an experienced bankruptcy attorney in your area of Texas today.
Problem – What if You’re Not Eligible for Chapter 7 Bankruptcy
May 21, 2010
What if you find out you’re not eligible for Chapter 7 bankruptcy? For Texas bankruptcy, this problem is unfortunately common. However, many are still eligible for bankruptcy. Under new bankruptcy code, you are eligible based on income. For Texas residents, the numbers are as follows.
1 Person – Annual Income Less Than $38,801
Family of 2 – Annual Income of Less than $55,660
Family of 3 – Annual Income of Less Than $59,011
Family of 4 – Annual Income of Less than $66,145
Add $7,500 in most cases per any more family members.
That’s the laws for Texas, and are different for other states. If you, for instance, are a married family of 3 including one child, and you make $50,000 combined, you are likely eligible. If you make $65,000 combined and you live in Texas, you are not eligible. Again, these are the numbers for Texas median incomes. For other states, look on the web for the 2010 annual median income and you can find out.
What is Chapter 7 Bankruptcy?
For Texas and other states, the main goals of Chapter 7 bankruptcy are pretty common. One of the biggest reasons individuals and families file for bankruptcy is because of medical bills; some studies say as many as 60% of bankruptcies are caused by medical problems. Chapter 7, a liquidation proceeding, can eliminate these debts.
What if You Make too Much Money?
Okay, so you’re not eligible for Chapter 7. What are your options? You can still file under Chapter 13. Chapter 13 is a debt repayment plan; you pay back debts instead of discharging them. The good news is, there are key advantages to Chapter 13.
What if You’re Behind on Mortgage Payments?
One of the biggest benefits of Chapter 13 bankruptcy is being able to keep your home. Say you are married, you and your spouse make $80,000 year, and you have two children. You make too much, for Texas residents at least, to file for Chapter 7. But, if you own a home and want to keep it, you can successfully head off foreclosure with Chapter 13. How? Chapter 13 comes with an “automatic stay” where your creditors cannot seize any property. If you are eligible, if you can maintain mortgage payments, you can save your home.
How Do You Qualify for Chapter 13?
If you make too much for Chapter 7 bankruptcy, Chapter 13 is a good option. Now, you still have to be eligible. For every citizen the of the U.S. there is a set amount for Chapter 13 eligibility. You must have secured debts less than $1,010,650, and unsecured debts of $336,900. Most are easily eligible.
Can You Negotiate Outside Bankruptcy?
Yes, there are alternatives to bankruptcy. Bankruptcy has negatives; it would be wrong to say otherwise. But more often than not, simply negotiating with creditors or hoping you get enough money to pay back debts does not work. If you are one of the many with high credit card and/or medical debt, Chapter 7 is your best option. If you have a high paying job but are falling behind on bills and mortgage payments, Chapter 13 is very good.
How a Texas Attorney Can Help with Chapter 13 Bankruptcy
May 10, 2010
How can an attorney help you before, during, and after bankruptcy? Clearly there are advantages in filing for Chapter 13 bankruptcy, especially in Texas, so let’s find out those first.
Advantages of Texas Chapter 13
Since unemployment rates and foreclosures are a still a problem nationwide, including Texas, you might wonder what Chapter 13 bankruptcy can help with.
Plenty, because by filing you can save your home from foreclosure, buy time to catch up with bills, and be free of creditors during the entire plan.
There are some disadvantages for Chapter 13 when compared to Chapter 7, namely the fact you cannot eliminate debt in Chapter 13. However, if you make too much money, if you fear you’ll lose your home to foreclosure, an experienced attorney will tell you Chapter 13 is the best. You can’t save your home with Chapter 7.
How do you hire a Texas attorney?
Hiring an attorney is that big first step before bankruptcy. To hire one, look over 3 crucial parts: experience, availability, and price. When used together, these can really help you choose between the lawyer who has an office in town and the lawyer who specializes in helping home owners avoid foreclosure in Texas.
How much experience does a Texas bankruptcy attorney need? First, they should specialize in personal bankruptcy. They should have close to a lifetime in training and work. When it comes to price, it depends on your financial institution, but you can get an experienced Texas bankruptcy attorney for $1,000-$2,500 in most cases.
How does the attorney help?
Before you even file with the Texas court in your area, be sure to hire an experienced bankruptcy attorney. Before the bankruptcy, a good attorney will see what you’re eligible for, if you’ll lose any assets, if Chapter 7 or Chapter 13 is best, and how to plan for your future. During the proceeding, you’ll be asked to appear briefly in Texas court for Chapter 13. For the most part, your attorney will handle the entire process, saving you valuable time and avoiding mistakes.
Also during the bankruptcy, your attorney can stop all creditor harassment. If the phone is ringing off the hook from creditors calling about past due bills, an attorney can either stop these calls completely or handle them in his/her office. This may seem minor, but if you’ve ever been the subject of creditor harassment, you know how invaluable this is.
Finally, before the bankruptcy is over your attorney helps you prepare for a fresh start. For Chapter 13, it will be a 3-5 year process, where you will be able to save your home, car, and other assets, and maintain your job without threat of wage garnishment. The process start when you hire the right Texas bankruptcy attorney.
6 Big Benefits of Chapter 13 Bankruptcy
May 7, 2010
Bankruptcy gets a bad name, but in reality there are more benefits than negatives.
On paper, bankruptcy is a very reasonable option. It does take some work to get it to work, it does require the services of an experienced bankruptcy attorney, but you need not be a lawyer to see the big benefits.
Where do you start? You hire an attorney to help you with your case. After that, the benefits are more than can be listed in one blog post, but here are some big ones.
1-Save Your Home
Saving your home from foreclosure by getting an automatic stay from the court is perhaps the biggest benefit of Chapter 13 in today’s economy. After all, thousands of homes go into foreclosures almost weekly in the U.S. Some states are worse than others, but all states are feeling it, and all citizens are losing their dreams.
It need not be this way. With Chapter 13 bankruptcy, you can first delay a foreclosure from ever occurring and then restructure the payments so you can afford them.
2-Freedom from Creditors
Once you file bankruptcy, Chapter 7 or Chapter 13, you can immediately see the benefit every time your phone does not ring with a creditor explaining you owe money. In either case, your attorney will handle the creditors or they will have no point in calling you — it just won’t matter anymore once the bankruptcy is successful.
3-Keep Car and Other Assets
Technically, under Chapter 7 certain assets of a certain value can be sold by the trustee in order to pay back debts. Under Chapter 13, you lose nothing if you can keep up with payments. The big result is saving your home, but coming in at #2 for many families is the car. Under a restructured payment plan, you can afford to own vehicles again and not worry about the repo-man.
4-No Wage Garnishment
When you owe major debts, it can be a struggle. Once the government starts taking money out of your paycheck, even more so. Wage garnishment is another problem prior to bankruptcy which can be stalled, especially with Chapter 13.
5-Keep Income Taxes
If you owe a lot of taxes, these can never be discharged but they can be paid back. If you fear the government will take your income tax, which can happen in Chapter 7 bankruptcy, you can file under Chapter 13 and include it as part of the deal.
6-A Fresh Start Free of Debts
Perhaps it seems different to think about your mental health when your home is almost in foreclosure or creditors are asking for payment, but it should be a part of the thought process.
If you’re on the fence about filing for bankruptcy, or if you’re considering between Chapter 7 and Chapter 13, clearly one big benefit is to be free of the anxiety. Free of losing your home, car, getting wage garnishments, losing all your income tax, even having no way to feed your family. Peace of mind is all these benefits combined to result in a big bonus.
Beginning the Chapter 13 Bankruptcy Process
August 19, 2009
What to expect when you begin the Chapter 13 Bankrutpcy process in Dallas Fort Worth.