Why File Dallas Chapter 7 Bankruptcy?
December 17, 2010
Bankruptcy can change your life when used right. Thousands file bankruptcy successfully in Texas every year. Why? That is the subject of this guide. We’ll focus on the advantages of filing Texas Chapter 7 bankruptcy.
How Does a Chapter 7 Bankruptcy Work?
Chapter 7 bankruptcy discharges you of both unsecured and secured debts. The common reasons for filing include because of a large medical debt or being unemployed and having a high credit card debt. Since many of us lack health insurance, medical debt is the leading cause of bankruptcy, and one of the advantages of using Chapter 7, as you can discharge this debt in a matter of months. You file with the courts. You list all debts you want to discharge. You continue paying, if wanted, on certain debts, such as a secured debt on your home. And then in a matter of months you can be free to move on with your life.
How Much Can You Save with Chapter 7?
Typically you can save tens of thousands of dollars if not more with a Chapter 7 bankruptcy. You must first be eligible, and that is governed by how much you make. If you make more than the Texas median income, as we go over often on the Higgins and Associates blog, then you will not be eligible. If you make less, perhaps because you have a low income or are recently unemployed, you would likely be eligible. If you are not eligible, you may be able to file Chapter 13.
Why File Chapter 7?
We went over one of the reasons: you save money. You might save tens of thousands of dollars. If you have an impossible debt you simply cannot pay, you should consider bankruptcy. There are some alternatives to Chapter 7. You might file Chapter 13, where you buy yourself time to pay back debts. You might sell some assets. You might tap into your savings. But sometimes Chapter 7 bankruptcy is your best option.
Who Can Help?
Texas bankruptcy can be complex. While it is possible to file Chapter 7 bankruptcy without the help of a Texas lawyer, you might make some mistakes. You may have some questions you need help with. You may have concerns. You may have certain assets or properties you fear losing. If you are like most, you are unaware of bankruptcy laws. If that is the case, it’s time to hire an experienced Texas bankruptcy lawyer.
Filing Chapter 7 Bankruptcy in Dallas Texas
December 10, 2010
Chapter 7 bankruptcy may save you far more money than any other option. How so? In the state of Texas, while our economy is not as bad as other states, debts and unemployment are still a problem. Another problem is that of people lacking medical coverage. These all lead to impossible debts. You have options. You might sell your home. You might consult with a debt management company. Or you might file for bankruptcy help with a Dallas bankruptcy lawyer. Of all these options, bankruptcy is the best. Who wants to lose their home? And working with debt management companies rarely if ever works out, as they tend to charge you more than you really owe, and may hurt your credit.
You might try Chapter 13 or Chapter 7 bankruptcy. What are the differences? And what are the advantages of Chapter 7 bankruptcy? This blog guide can help you understand why to file, when to file, and how to file Chapter 7 bankruptcy.
Why File Chapter 7
Chapter 7 bankruptcy is a liquidation, and in Texas, that may sound bad. Well, you might lose certain assets if you cannot pay on them. If you cannot afford your home, you do have options which you can speak to your Dallas bankruptcy lawyer about. If you are unemployed, you may lose some of your possessions by filing bankruptcy. On the other hand, you stand to save tens of thousands of dollars.
When to File Chapter 7
You may owe a huge medical expense, such as a $100,000 bill on a random hospital visit. You might owe $50,000 in credit card debt. You may be unemployed and owe more money than you make in a year. In these situations, it’s smart to consider Chapter 7 bankruptcy over other options. When you owe more than you make in several years time, it’s a good option. Instead of spending all your savings or going into your retirement money, you can discharge the debt with a Chapter 7 bankruptcy filing.
How to File Chapter 7
If you are eligible for Chapter 7 bankruptcy, you can make use of it’s advantages. It’s based on how much you make in comparison to the Texas median income. If you make more than the Texas median income, you may not be eligible. If you are unemployed, you are likely eligible. Once you find out what you’re eligible for, it’s time to consult with a Dallas bankruptcy lawyer.
Who Can Help?
Filing Chapter 7 bankruptcy can be scary, but remember how much you stand to save. It can literally change your life. There will be some decisions to make. Can you keep your home? Can you keep your car? What if creditors continue harassing you? There are some questions too, such as what debts will be discharged. If you are unsure, get the help of a Dallas bankruptcy lawyer. It’s his or her job to help you reap the rewards of a successful Chapter 7 filing.
Finding Legal Help for Texas Chapter 7 Bankruptcy
December 2, 2010
If you are unsure of how to get started with a bankruptcy, you are not alone and there is help. How can you find the right legal help? This guide will show you how. We will go over what type of lawyer you need, what you should expect to pay, how a lawyer can help, and how soon you can reap the rewards of bankruptcy.
Why Hire a Bankruptcy Lawyer?
The problem is that, in Texas foreclosures, unemployment, credit card debt, and medical debt are forcing many of us to make tough decisions. To help make these decisions, you hire a lawyer. A lawyer saves you money. A lawyer saves you time and worry. A lawyer can help you understand the legal help bankruptcy can give. If you have home and/or car, you can protect both with bankruptcy. Finally, bankruptcy may not be your best option: you may do better paying off the debts or negotiating with creditors yourself. A good lawyer is honest, and does not lead you toward bankruptcy if it’s unnecessary.
What type of lawyer do you need?
You need a bankruptcy lawyer, someone who specializes in bankruptcy law, who you can communicate with, and who can help you handle creditors. The most important part may be of specializing in bankruptcy law. This is quite crucial if you truly want a successful bankruptcy. You don’t want just any lawyer who understands the process; you want one who specializes.
How can you find one?
You can look online for lawyers. You can consult the State Bar of Texas, found at Texasbar.com. There are literally thousands of bankruptcy lawyers, but not all are equal. Some will charge too much. Others won’t be able to truly spend time with you, especially if they have too many clients. Some will lack the necessary court room experience. Some may even have no experience in negotiating with creditors. These are all important parts.
How much?
Typically you pay $1,000 to $2,000 for a Texas bankruptcy lawyer, sometimes less and sometimes more. This fee can be negotiated. But have it down on paper before you begin. If your bankruptcy is a tough one, you may pay more. But understand you will likely save tens of thousands of dollars, protect valuable property, and get a fresh start.
The Rewards of Bankruptcy
Depending on what form of bankruptcy you file, the rewards are different. You may want to file Chapter 7 bankruptcy to discharge your $50,000 medical debt. You may want to avoid foreclosure with a Chapter 13 bankruptcy. Or you may want to get some relief from bills you simply cannot pay on time after losing your job. There are many laws to know, such as the Texas Homestead Exemption, and a lawyer can explain them to you.
5 Points On When to File Chapter 7 Bankruptcy
November 26, 2010
Bankruptcy is not always your best option but it can be a life changing event. Generally, if you fit the criteria for several if not all of the following 5 points, you should consider bankruptcy. We’ll focus on Chapter 7, with some notes on Chapter 13 too.
Approaching Retirement
The older you are, the more the advantages you have of filing Chapter 7 or Chapter 13 bankruptcy. There is much more to it, but if you are facing debts which will cause you stress, anxiety, and money issues for the rest of your life, you should consider bankruptcy. A Chapter 7 bankruptcy is quite effective when you owe more than you cannot pay back in a reasonable amount of time, usually about 3 years. If you have a lot of assets and dependents, Chapter 13 bankruptcy may be better.
More Dependents
The more who depend on you, the greater the effect of bankruptcy. If you have a large family, for example, and a $50,000 medical debt hanging over you and a mortgage to pay, you may consider Chapter 7 bankruptcy. If you are single or a couple and you both work, Chapter 7 bankruptcy can still be a very smart decision. It’s just if you have others who depend on you to put food on the table, cash reserves are important.
Higher Your Debt
Another logical point: the more you owe, the more bankruptcy can help. While bankruptcy cannot discharge all your debts, it can discharge major credit and medical debts. If you owe a $25,000 credit card bill and recently lost your job, you may consider Chapter 7. If your family lacks insurance and your spouse is in the hospital for weeks, it can be impossible to pay these fees.
Less Income
As noted, the less money you have, the more bankruptcy can help. It is important to note your savings too. You may have some emergency or retirement monies, such as in an IRA account. You might consider cashing these out in order to avoid bankruptcy. Think twice before you spend money designated for your future. Filing bankruptcy can often be much safer than spending your whole savings.
Can you pay off in 3 years?
Finally, consider how soon you can pay off these debts. If you can pay it off in 3 years or less without spending all your savings and income, you may consider paying it off. On the other hand, if you the debt is simply impossible, Chapter 7 bankruptcy can be a big help.
Bottom Line on Texas Chapter 7 Bankruptcy – Your Savings, 401K, and Future
November 24, 2010
Quite often we make small problems big ones, especially when it comes to financial issues. While some are well instructed on how to handle financial issues, others simply lack the time. If you are unsure of your financial situation, this blog guide can help you with key financial decisions. The point here is that you should avoid spending moneys you don’t need to, namely your 401K, your savings, and retirement money.
Why File Chapter 7?
Chapter 7 bankruptcy in Texas is not a magic solution, but it can be used to effectively cancel monies owed you simply cannot pay. In other words, use it, but use it with commonsense. You can only file Chapter 7 bankruptcy, for example, every six years. Therefore, when you do use it, file Chapter 7 for maximum effectiveness.
But why file? To file would mean discharging most if not all your unsecured debts. Secured debts are monies owed like your home and car, where you stand to have them taken by not paying. Unsecured debts would be monies owed on your credit card and medical bill. For example, if you owe a $50,000 medical bill, you could discharge this unsecured debt with a Chapter 7 bankruptcy. But, technically by Texas law certain items are exempt from being taken by certain creditors, namely your home. So Chapter 7 bankruptcy is an option on the table, but not all collections against you will result in your home being taken or your car repossessed. Yes, this is a complex issue, but by reading guides like this you are getting a better understanding.
Your Savings
Back to the point of the bottom line, if you owe $25,000 to creditors, and have $10,000 in your savings, money you perhaps saved for your future, you might consider using it. Should you throw your savings away, or should you file bankruptcy? This is a tough issue. First and foremost, you don’t always want to spend your savings, especially when it only buys you time or does not cover the bill. If you had $10,000, it would not cancel the bill. You may consider using your savings, 401K, and retirement package to pay the bill. What happens if you lose your job? Again, this is a tough decision, and not one to make alone.
Your 401K
Typically spending your 401K does not solve the problem either. We went over this point. If you only buy yourself some time, or if you simply accumulate new debts, it’s pointless.
Retirement Money
Instead of spending your savings, money you need to live on now, you may consider borrowing from the future. Why not file bankruptcy instead? Its’ not always your best option, but you get legal protection from creditors, you can save literally thousands of dollars, and you won’t be living on a small pension or Social Security when you retire.
The Bankruptcy Option
Chapter 7 bankruptcy for Texans is not always the best option, but it can be. The majority of the time, if you are only buying yourself a some months or years by spending savings, 401k, and retirement money, file either Chapter 7 or Chapter 13 bankruptcy instead. Chapter 7 is best if you owe a lot of unsecured debts, and can completely eliminate most all debts. Chapter 13 can better protect your property and assets.
7 Benefits of Filing Dallas Chapter 7 Bankruptcy
November 19, 2010
Rebuild Credit
How does bankruptcy help rebuild your credit? If you owe $50,000, then discharge the debt with Chapter 7, won’t that hurt your credit? It will hurt your credit as bad as defaulting on the loan. You have a much better chance of rebuilding your credit after filing bankruptcy rather than doing nothing. A bank will feel more confident in giving you a loan if you owe nothing rather than if you owe a huge medical or credit card bill.
Discharge Medical Debt
Speaking of medical bills, this form of debt is the most common reason for filing Dallas Chapter 7 bankruptcy. You get sick, go to the hospital, have no insurance, and get a $25,000 medical bill. You get hurt, have to get medical attention, then find your insurance does not cover this type of injury. A loved one might get sick or hurt,and because you lack insurance, you’re faced with an impossible bill. It happens every day. Your best option may be to discharge the debt with a Chapter 7 bankruptcy.
Discharge Credit Card Debt
Credit card debt is the second leading cause of bankruptcy in Dallas. If you owe so much you cannot pay your mortgage, if you lost your job and ran up some debt, if you or your spouse made some buying mistakes – these can all result in impossible debts. The answer is not always to file Dallas Chapter 7 bankruptcy, but to eliminate the debt, it’s one of the best.
Protect Your Income
If you owe money because of a medical or credit card debt, you may fear wage garnishment. In the state of Texas, only the lender can take your home to repay the mortgage, but creditors can have your wages garnished. Bankruptcy stops this.
Discharge Your Mortgage
If you simply cannot afford to pay on your Dallas home mortgage, Chapter 7 bankruptcy can discharge the debt. If you fall behind in payments, you can buy yourself some time to find a new residence by filing.
Stop Collections
Who likes creditor harassment? First off, there are rules to be followed – you can, for example, stop harassment by writing your creditors a letter. While Chapter 7 bankruptcy should not be filed simply because of harassment, stopping collections is one major benefit. Creditors will have no more reason to harass you. If they continue, you can get your lawyer to help.
The Dallas Fresh Start
Texas has not been hit as hard by unemployment, bankruptcy, and foreclosure as some other states, but the reality is our nation’s economy has had better days. You have options beyond Chapter 7 bankruptcy, but if you have unsecured debts like credit and medical, this is a good option. In a matter of months, you can start rebuilding your credit and get a fresh start.
3 Month Plan for Chapter 7 Bankruptcy In Texas
November 12, 2010
Bankruptcy is a life changing event, and it should be for the better. You can save money on debts. You can protect your home, or buy time to get a new residence. You can stop creditor harassment. You can protect your income from wage garnishment.
Bankruptcy is not easy. It requires time, patience, honesty, and most importantly, study. With the tips in this guide you can be free of most debt – and protect your assets – in a matter of months.
Get an Experienced Lawyer
If you are going to file bankruptcy, hire a lawyer. Hire a lawyer because he or she can explain how the process works. Are you eligible? What debts can you discharge? How you can protect assets like your home and car? What if you’re not eligible for Chapter 7? Is Chapter 13 bankruptcy better for you? A lawyer answers your questions, protects your legal rights, protects your income, and protects your assets.
Find Out All Your Debts
You can find out about your debts via a credit report. You may not know what is all on your record. You want to discharge the most debt with your Chapter 7 bankruptcy. Therefore, find your credit report – it can be scary to look at it, but hang in there – and see if all the debts are there and correct. You may be surprised that some paid debts are on your credit report; this does happen, and you can have them removed.
Where can you get your credit report? According to the FTC, you can get your credit report for free at annualcreditreport.com. This is a listing of all three national creditors.
What do you want to keep?
If you want to keep an asset, you must list it in your bankruptcy. If you try to hide an asset – some filers try to save a home or car – you are in danger of losing the ability to file at all. Simply filing Texas Chapter 7 bankruptcy does not mean you will lose everything. Most of us lose little to nothing when filing Chapter 7. You may have a home or property, a car, some valuable jewelry, an expensive TV, etc, and think this will be taken. Since Chapter 7 is called a “liquidation,” where you pay off debts but stand to lose assets, this thought is understandable.
However, if you can keep up on payments outside your bankruptcy, you have many protections. For example, the homestead exemption can protect your home from creditors (but not the government or your lender). Also, you can negotiate outside the bankruptcy, perhaps continuing to pay your car payments, and be fine. If you have bought in excess prior to the bankruptcy, these debts can be considered outside of it, so don’t run up your card. You do not want to start some bad buying habits, thinking it will be discharged; there are laws against this.
File for Effect
When you file, file at the right time. This means you file when you have the most debts. You may also want to include your mortgage and car in the bankruptcy – which would mean losing them – because you cannot afford the debts. You have many more options than you might think. Wait for the high hospital bill to come in, for the high credit card bill to arrive, and then, when your bankruptcy can best discharge your debts, file.
Discharge Debt
It typically only takes 3-4 months to file a Chapter 7 bankruptcy. You can discharge the medical debt, the credit card debt, stop creditor harassment,and finally get a fresh start.
Dangers of Not Hiring a Texas Bankruptcy Lawyer
November 5, 2010
If you lack a lawyer, you lack the tools needed for a successful bankruptcy. You face many dangers if you forgo hiring a lawyer and decide to file without legal aid.
Why is legal aid so important? Look at it this way: why do you need to file bankruptcy? When you look deeper at that – the reason being you want to save money and/or protecting assets – it points out how a lawyer helps you. Not by overcharging you, not by taking your money, but by helping you save money on debts. If you owe $50,000 in medical expenses, how are you going to pay? How important is hiring a lawyer, then, when you stand to save so much? If you pay a total of $2,500, a good ball park number, to pay filing and lawyer fees, you stand to save 20 times that amount.
What if you research bankruptcy? Yes, you may be able to do without a lawyer. You may be able, technically, to land on the moon too – it’s possible – but you don’t do it. Why? It would take years of study. If you want to file bankruptcy yourself, research is not going to work unless you go to law school and learn bankruptcy laws.
What if you have questions? If you do not hire a lawyer, and you’re unsure about certain filing documents or requirements, you’re out of luck. Perhaps the best asset of hiring any experienced lawyer is how he or she can answer so many questions. And when filing to save thousands of dollars or to protect valuable assets, these questions can be crucial. You might, for example, have to decide between keeping your home and discharging the debt. Then your Texas bankruptcy lawyer tells you about the homestead exemption, you save your home, and you save money.
What if you have no money? Again, research is not enough. You need a lawyer. If you cannot hire professional legal counsel, you can try and do it yourself. You might be able to get a loan to help pay this lawyer. You will not be paying huge amounts.
How much will a Texas bankruptcy lawyer cost? Typically, experienced Texas bankruptcy lawyers charge as little as $1,500 to $2,500, sometimes less, sometimes more. It depends on the complexity of your case. And there is always room for negotiation and payment plans.
Where can you find a lawyer? The Texas State Bar is a good resource for finding bankruptcy lawyers. You want one local, so if you’re in Dallas, get a Dallas lawyer. You want one who specializes: not a “do-it-all” lawyer, but someone who focuses on bankruptcy. You want one you can afford too.
Perhaps the danger of not hiring an experienced Texas bankruptcy lawyer comes down to money. If you want to save more, and protect more of what you own, you need a good lawyer.
Should You Always File Chapter 7 for Unsecured Debts?
November 3, 2010
There are some unsecured debts you cannot discharge, some debts you can discharge, and some debts which will be impossible to pay without a bankruptcy. The question posed in the title – when you should file Chapter 7 for unsecured debt – may lead to some questions. Namely, what can you discharge? What can’t you discharge? How much can you save? Should you always file? There are many more, so let’s get started.
Debts You Can’t Discharge
There are some “nondischargable” debts which you cannot eliminate. This includes child support, alimony, student loans, taxes, luxury expenses, and court judgments. If you are paying child support to your spouse, or if you’re paying alimony, a bankruptcy, logically, does not discharge this debt. Income tax is quite obvious: why would the government allow a loophole to stop paying taxes? Student loans would be another loophole: if you could discharge $100,000 in back payments, everyone would do it.
Court judgments are more complicated. On the legal reference site Nolo.com, the example is when an injury or death was caused by you’re drinking and driving. You may face lawsuits of other kinds, and therefore cannot discharge what you owe as the court ruling still stands.
Judgment Proof
Another strong point made on Nolo is whether or not you are judgment proof. The point here is, if creditors have no right to take your assets or income, you may not even need to file for bankruptcy. If you have a lot of unsecured debt, you may think filing is your only option. That’s wrong. If you have no income, if you are on disability or social security, this income cannot be taken. There are some complex laws involved here, so it’s best to consult with an experienced lawyer.
How much unsecured debts?
What is an unsecured debt? Simply, monies owed with no collateral. A secured debt would be a home. An unsecured debt would be a credit card debt. You can discharge most unsecured debts in a Chapter 7 bankruptcy, but you may not want to discharge secured debts. Why? Because, if for example you discharge your mortgage, you lose the home. Chapter 7 is a liquidation, but you do not always lose assets like your home and car, especially if you start paying on them.
When should you discharge the debt?
If you have a lot of unsecured debts – such as medical and credit monies owed – Chapter 7 can be quite effective. For one, Chapter 7 bankruptcy discharges your debts in a matter of months, stops creditor harassment, and gives you a healthy fresh start financially.
On the other hand, you may consider a debt repayment plan with Chapter 13 bankruptcy. Texas has some unique laws, including the homestead exemption, which, when used with a bankruptcy, can buy you time to pay on secured debts like your home and car with no danger of losing them.
Unique Tools to Help in Your Chapter 7 Bankruptcy
October 4, 2010
How do you benefit from bankruptcy? You use tools to the best of your ability. What tools are those? It starts with a good lawyer, and ends with an understanding of the law. But some of these unique tools may not yet be in your tool kit, or you may not know they are there.
A Professional Texas Bankruptcy Lawyer
Perhaps your best tool is the person you hire to protect your rights. While there are many lawyers available to help with bankruptcy across the country, you want someone local. Though many lawyers have impressive degrees, for many individuals and families, money concerns are there. A lawyer is valuable when he or she has the experience to represent you both in and out of court. This tool can stop creditor harassment, protect your family, stop wage garnishment, help you avoid foreclosure, and stop many other legal problems from occurring. Each lawyer is unique in how they can help you, but an experienced one will help you reap the rewards of a successful bankruptcy.,
Your Assets
Oddly enough, your assets are tools too. In a Chapter 7 bankruptcy, technically the wording is “liquidation,” where money and assets are sold to pay back debtors. Don’t worry; most filers lose nothing when filing for bankruptcy, especially if you hire the right lawyer. However, your assets are tools to help you get out of certain situations. You may have to downsize some in order to successfully get a fresh start. For example, instead of losing your home, you might sell it in a short sale to pay off the mortgage. Or, if you have exempt assets which won’t be taken, during times when money is tight, the extra income from selling them may get you through. It’s never fun, but you are more important than the home, the car, the jewelry, the personal possession. If you can discharge tens of thousands in debt, it’s more than worth it.
Reading
Your eyes are tools. One asset you have is the internet. 30 years ago filers had to go directly to a lawyer and rarely had much knowledge on how the process works. This Texas bankruptcy blog is a prime example of using web tools to better your chances of discharging debt and protecting assets.
Asking
Another tool involves your lawyer and other bankruptcy experts – asking bankruptcy questions. If you own a home in Dallas, and you fear it will go into foreclosure, what are your options? A quick question to your lawyer may help you avoid foreclosure. Or you may have a high medical bill because you lack coverage. Asking can help you find the best way to discharge this debt (likely Chapter 7 bankruptcy).
The Law and Your Rights
Texas laws are designed, like many other states, to protect individuals more than protect creditors. That’s a good thing. You have laws designed to protect you from losing your home and car, from getting your wages garnished, from having to pay on impossible bills. You just have to use them and understand them.