Posted on January 16, 2025 in Bankruptcy

Debt settlement is a way for people with a lot of unsecured debt – usually credit card debt – to negotiate a realistic repayment plan. Usually, negotiating a debt settlement means that your creditor will agree that you pay a lower sum than what you owe.

In exchange, you will agree to pay the debt back as a lump sum rather than in installments, and your creditor will "settle" the debt. Debt settlement can be a great way to wipe out much of your credit card debt, but it also comes with significant downsides. An experienced Parker County, TX debt settlement attorney can advise you on whether debt settlement is right for you. 

Pros of Negotiating a Debt Settlement

Lowering Your Debt Amount

Probably the biggest benefit of successfully negotiating a debt settlement is that it is an opportunity to lower your debt. It can be a way to deal with a large amount of credit card debt. 

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 Posted on January 09, 2025 in Bankruptcy

If you face significant debt, you may be wondering whether filing for Chapter 7 bankruptcy is the right option for you. One important thing to keep in mind is that to qualify for Chapter 7 bankruptcy, you must pass the "means test." You generally pass the means test if your income falls below the median Texas income. An experienced Fort Worth, TX attorney can advise you on whether you are likely to pass the means test to file Chapter 7 bankruptcy. 

What Is The Purpose of the Means Test?

The means test is a protective measure put in place to ensure that high-income individuals do not abuse Chapter 7 to discharge debts they may be able to pay. The means test measures your "means" or ability to pay back debtors and, at its core, is a formula used to determine if your income is low enough to qualify for Chapter 7 bankruptcy, which is the quickest, simplest, and most forgiving form of bankruptcy. 

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 Posted on December 23, 2024 in Bankruptcy

If you are about to file Chapter 7 or Chapter 13 bankruptcy, you may be concerned about losing some important assets, such as your home and vehicle. The good news is that Texas offers bankruptcy exemptions that can protect your home, car, and certain personal property. The best way to get more information about how Texas bankruptcy exemptions can protect you is to contact a Fort Worth, TX bankruptcy attorney.

How Do Exemptions Work in Bankruptcy? 

When you file for bankruptcy, your "nonexempt" assets become part of the bankruptcy estate. However, some assets are exempt from bankruptcy, meaning that you may keep these assets after you file bankruptcy. There are federal and state exemptions, and in Texas you may choose either the state or federal exemptions up to a certain amount.

What Are Common Texas Bankruptcy Exemptions?

Texas has a number of bankruptcy exemptions, including life, health, and accident insurance, pensions of certain kinds of employees, burial plots, and even a percentage of unpaid commissions. However, the bankruptcy exemptions that you are likely to utilize most often are on your home, car, and certain personal property.

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 Posted on December 05, 2024 in Bankruptcy

If you are considering bankruptcy, you might be concerned that doing so will negatively affect your credit score. This concern is understandable. Bankruptcy misinformation is constantly pushed on consumers in hopes of deterring them from filing bankruptcy and discharging their debt.  Many people are under the impression that filing bankruptcy will only negatively impact their credit score, but our clients consistently report that filing bankruptcy has improved their scores, and dramatically.    

Although you may have heard that bankruptcy will destroy your credit score for a long time, that does not have to be the case and often is not. In the long run, and even in the short term, many people will actually see improvements in their credit scores. A skilled bankruptcy attorney can advise you on what to expect if you file bankruptcy.

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 Posted on November 21, 2024 in Bankruptcy

Personal loans, also referred to as unsecured loans, are those that are not tied to security or collateral. They are usually paid in a lump sum to the borrower, who pays back the debt in installments. A personal loan can be a lifesaver in times of financial difficulty, but it is also debt that can become a financial burden.

If you are overwhelmed with debt and considering bankruptcy, it is important to understand how filing for bankruptcy can discharge personal loans. For more details and for help with your bankruptcy filing, consult a qualified Texas bankruptcy attorney.

How Does Chapter 7 Bankruptcy Discharge Personal Loans?

In Chapter 7 bankruptcy, the borrower’s assets are liquidated — meaning they are sold off — to pay back creditors. Here is how the process works:

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 Posted on November 07, 2024 in Bankruptcy

An estimated 43.6 million Americans have student loan debt totaling approximately $1.753 trillion, with the average household owing about $38,000. This can feel overwhelming to a borrower, especially one who has other debts.  

It is possible to discharge your student loan debt by filing bankruptcy, though it is not like discharging other types of debt. In Texas, courts look at certain factors and use specific methods when deciding whether to discharge student loan debt, such as the Brunner Test and the Totality of Circumstances Test. The best way to find out if you would qualify for a student loan debt discharge is to consult a Texas bankruptcy attorney who will review your financial situation and advise you on the next steps.

What Is the Brunner Test?

Under 11 U.S.C. § 523(a) (8) (B), a borrower’s student loan debt may be discharged if paying it back would present an "undue hardship." Since the law does not define this term, courts use the Brunner Test to determine what constitutes undue hardship. The Brunner Test comes from a case called Brunner v. N.Y. State Higher Education Services Corp and uses the following three criteria to determine whether a borrower would face undue hardship by repaying student loans:

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 Posted on October 23, 2024 in Bankruptcy

Bankruptcy is a legal option that debtors sometimes choose when they are overwhelmed with debt. It can provide relief when it comes to credit card debt, student loan debt, and outstanding payments from other unsecured loans. But how does bankruptcy work when it comes to mortgages? Can bankruptcy help avoid foreclosure by a lender who cannot collect mortgage debt?

This article will discuss how bankruptcy can help avoid foreclosure. For more details or help filing bankruptcy, contact an experienced Texas bankruptcy attorney who can guide you through the process.

How Can I Avoid Foreclosure During the Bankruptcy Process?

A Chapter 7 bankruptcy case may take up to six months to close. A Chapter 13 case may take up to four months until a repayment plan is finalized and up to five years until debts are paid off. During these periods, the bankruptcy filer is protected from creditors by a provision in the U.S. Bankruptcy Code called the automatic stay. This law takes effect immediately upon the filing of a bankruptcy petition and prevents creditors from taking certain actions, such as:

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 Posted on October 07, 2024 in Bankruptcy

Bankruptcy is viewed as a way to pull yourself out of debt and get a fresh start. Like anything else, however, it comes at a cost. Your credit score takes a major hit if you discharge your debts through bankruptcy, making it more difficult for you to obtain new lines of credit like auto loans and mortgages. It can also affect your ability to get approved for checking accounts and credit cards. A Chapter 13 bankruptcy stays on your credit report for seven years, and a Chapter 7 bankruptcy stays on for 10.

It will take time, but you can eventually rebuild your credit after a bankruptcy discharge. This article will discuss four ways to do that, as well as how to contact a Texas bankruptcy attorney for more details.

Apply for a Secured Credit Card

A great way to start rebuilding your credit is to apply for a secured credit card. This is a credit card that requires a cash deposit which is used as collateral in case you default on your debt. If you make your payments on time and keep your outstanding balance low, it can start to improve your credit score. When applying for a secured credit card, make sure the lender will report your payment history to the three major credit bureaus.

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 Posted on September 18, 2024 in Bankruptcy

The main advantage of Chapter 7 bankruptcy is that when liquidation is over, the bankruptcy is over and you can move on quickly. Many people like to avoid Chapter 13 bankruptcy because they do not like the idea of having to put all of their disposable income toward debt repayment for several years or more. However, there are many good reasons to choose Chapter 13. Depending on your personal priorities and how averse to liquidation you are, you may find that Chapter 13 bankruptcy is preferable. An Arlington, TX bankruptcy lawyer can help you decide whether Chapter 7 or Chapter 13 bankruptcy is right for you.

Chapter 13 Bankruptcy Avoids Liquidation

The main benefit of Chapter 13 bankruptcy is that you can avoid having your assets liquidated. Avoiding liquidation is a high priority for many people. If you cannot stand the idea of having some of your assets seized and sold off to repay your debts, Chapter 13 may be your better option.

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 Posted on September 11, 2024 in Bankruptcy

The fact is that many small businesses fail within their first year. Even if you had a great concept for a business and are very experienced, there is a chance that your company simply will not be able to stay open. This is often due to factors beyond the control of the business owner. It could be that you opened your business at a time when many of your potential customers were struggling financially, or that you were overshadowed by a larger corporation with a higher advertising budget that opened a new location around the time you opened your doors. If you are planning to close your business, Chapter 7 bankruptcy can help you eliminate your business debt. An Arlington, TX bankruptcy lawyer can help you determine the best course of action.

Why Liquidation Bankruptcy Works for Failing Businesses 

Chapter 7 bankruptcy involves selling off your business’s assets to pay off its creditors. Anything owned by your business entity will be liquidated, and the money will be used to pay off any debt your company still owes. When this process is complete, any remaining business debt will be cleared and you can walk away as if nothing happened.

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