Posted on October 15, 2024 in Bankruptcy

Making the decision to declare bankruptcy is never easy. It can be an upsetting experience, even if it is clearly the wisest course of action. Most people choose Chapter 7 bankruptcy, which does involve liquidating your assets. Liquidation refers to the process of selling off your assets to pay back as much of your debt as possible before the rest of it is cleared away. While the idea of liquidation might be intimidating, the reality is rarely as bad as people expect it to be. An experienced Galveston, TX bankruptcy attorney can talk you through what liquidation will be like for you.

Inventorying Your Assets is the First Step in Liquidation 

The first thing your attorney will help you do is inventory your assets if you did not already do this while qualifying for Chapter 7 bankruptcy. This means taking an accounting of everything you own and what it is worth. Even if an asset is probably going to be exempt from the liquidation process, your lawyer will still want to know about it. Most people who qualify for Chapter 7 bankruptcy have very few valuable assets, so this process is often quick and easy. You do not need to inventory every single item you own, but should report anything of value.

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 Posted on October 10, 2024 in Bankruptcy

It is normal for people to struggle financially after getting divorced. It is easier to maintain a household when there are two adults to share financial and childcare responsibilities. Child support and alimony can consume a significant portion of your income. Your financial situation might also have changed after you got divorced, causing you to fall behind on child support and alimony payments. You may also have taken on debt while establishing a new household and replacing things like furniture you lost in the divorce. While child support arrearage cannot be cleared during bankruptcy, past-due spousal support sometimes can. A Brazoria, TX bankruptcy attorney can help you understand how bankruptcy might affect your family law obligations.

Spousal Support Debt is Sometimes Cleared in Bankruptcy

If you are behind on alimony payments, this debt may be dischargeable during bankruptcy in certain circumstances. Alimony is intended for situations where the former spouses are not on equal economic footing and one spouse was earning enough to support the family. If you are filing for bankruptcy, you are probably no longer in a better financial position than your spouse and cannot keep paying support.

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 Posted on September 29, 2024 in Bankruptcy

You can file bankruptcy with or without your spouse. Most married people who are not legally separated file for bankruptcy at the same time. Both parties’ finances are usually closely entwined in a marriage, meaning that if one party is struggling financially, so is the other.

However, there are some situations where only one spouse needs to declare bankruptcy. If you are married and considering filing for bankruptcy, it is important to understand how bankruptcy can affect both you and your spouse. You should speak to an experienced Brazoria, TX bankruptcy attorney who can assess your specific situation and help you move forward.

Why Would Only One Spouse Need Bankruptcy? 

The most common reason why one spouse would want to file bankruptcy without involving the other is the existence of premarital debt. For example, say you took out a credit card when you were 18 years old and quickly maxed it out, then fell into a cycle of using payday loans as a recent college graduate, years before you met your spouse. You have not been able to pay it off yet due to high interest rates and a lack of disposable income. In this case, the debt is likely yours alone and there is no need for your spouse to join you in filing for bankruptcy, especially if he or she has little or no debt attached to his or her name.

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 Posted on September 20, 2024 in Bankruptcy

Most people who are considering bankruptcy would prefer to file under Chapter 7. When you file Chapter 7 bankruptcy, any non-exempt assets you own are liquidated and used to pay back a portion of your debt. Once the liquidation process is over, the balance of your debt is cleared. While Chapter 13 does not involve liquidation, it does require you to spend almost all your disposable income on debt repayment for three to five years. When you consider the list of assets that are exempt from liquidation, it is easy to see why most people would prefer to file under Chapter 7. However, to qualify for Chapter 7 bankruptcy, you must pass a means test or show that your income is too low to allow repayment. An experienced Harris County, TX bankruptcy lawyer can help determine whether you qualify for Chapter 7 bankruptcy.

Qualifying for Chapter 7 Bankruptcy Based on Income 

Chapter 7 bankruptcy is not meant to allow people whose income is high enough to allow for repayment to escape debt. People whose income is higher than the median income in their county usually cannot file under Chapter 7. The size of your household is taken into consideration. For example, say the median income overall in Harris County is $35,000 but the median income for someone supporting a family of four is $60,000. You have a family of four. If you earn under $60,000, you likely qualify for Chapter 7 bankruptcy.

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 Posted on September 17, 2024 in Bankruptcy

People with advanced degrees are just as likely to struggle with debt as anyone else. Often, this happens after a long illness, a sudden change in the economy, or a business venture that did not work out. Having student loan debt can lead to wage garnishment in Texas. Normally, student loans are not discharged in bankruptcy. However, in some very limited circumstances, it is possible to discharge your student loans by filing for bankruptcy. A few strict requirements must be met in order to find relief from student loan debt this way. If you are in a position where you are very unlikely to ever regain the ability to make payments toward your student loans, you should speak with a Houston, TX debt relief lawyer to see if you qualify.

When Can Student Loans Be Discharged in Bankruptcy? 

Most often, it is people who become permanently disabled after taking out student loans who qualify to discharge their student loan debt. You may be eligible to discharge your student loans through the bankruptcy process if you meet these requirements:  

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 Posted on September 05, 2024 in Creditor Harassment

Both Texas state law and the Federal Fair Debt Collection Practices Act protect debtors against unfair, abusive, or excessively annoying conduct by creditors. Just because you owe money does not mean that you deserve to be harassed by your creditors. In fact, if one of your creditors is harassing you, they may be breaking the law. While most people are sometimes annoyed by a creditor's attempts to collect a debt, there are limits on what a creditor can do in an effort to get paid. A Houston, TX debt relief attorney may be able to help you not only take steps to stop the harassment, but work towards your ultimate goal of complete debt relief.

Examples of Creditor Harassment 

While creditors can generally contact you - even repeatedly - there are limits regarding when and where they can attempt to make contact. Examples of creditor harassment include:

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 Posted on August 25, 2024 in Bankruptcy

Running a business comes with its share of challenges, and sometimes, despite your best efforts, financial difficulties may arise. In these difficult times, business liquidation might be an option worth considering. A Texas lawyer can help you understand when liquidation could be the right choice for your company.

What Exactly is Business Liquidation?

Business liquidation is the process of closing down a company and selling off its assets to pay creditors. While often seen as a last resort, it can sometimes be the most responsible decision for all parties involved. Liquidation serves several purposes, including paying off outstanding debts, avoiding further financial losses, and providing closure for your business ventures.

The liquidation process typically involves appointing a liquidator, notifying creditors and employees, selling off business assets, distributing proceeds to creditors, and finally dissolving the company. It is a challenging legal process that requires careful consideration and professional guidance.

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 Posted on August 21, 2024 in Bankruptcy

Are you struggling to make ends meet? Payday loan companies might seem like a quick fix, but they often lead to a cycle of debt that is hard to escape. A Texas lawyer can help reveal how these companies operate and what you can do to protect yourself.

The Payday Loan Trap

Payday loan companies offer short-term loans with high interest rates, targeting people who need money fast. The people payday loan companies target are often those with low incomes or bad credit. These companies lure customers in with an easy application process, quick approval, and cash in hand, usually without requiring a credit check. These features may sound appealing, but they come at a high cost.

The average annual percentage rate (APR) for payday loans is around 400%. This means a $500 loan could cost you $2,000 or more if not repaid quickly. The ease of obtaining these loans often masks their true cost, leading many borrowers into a financial trap they struggle to escape from.

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 Posted on August 15, 2024 in Bankruptcy

Facing financial hardship can be overwhelming, and deciding between Chapter 13 and Chapter 7 bankruptcy is an important step in regaining control of your finances. While both options offer relief, they serve different purposes and suit different situations. A Texas lawyer can help you understand when opting for Chapter 13 could be more beneficial.

It is important to note that every financial situation is unique. The information provided here is general guidance, and your specific case may have factors that change which option is most beneficial for you.

Differences Between Chapter 13 and Chapter 7

Before discussing when to choose Chapter 13, you should understand the main differences between the two bankruptcy types:

• Chapter 7: Often called "liquidation bankruptcy," it eliminates most unsecured debts quickly, usually within three to six months.

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 Posted on August 08, 2024 in Bankruptcy

Debt can be stressful, but when creditors cross the line into harassment, it adds unnecessary anxiety to an already challenging situation. A Texas lawyer can help you understand what constitutes creditor harassment to help protect your rights and maintain peace of mind during financial difficulties.

What Creditor Harassment Legally Means

Creditor harassment occurs when debt collectors use unfair, deceptive, or abusive practices while attempting to collect a debt. The Fair Debt Collection Practices Act (FDCPA) sets boundaries and clear guidelines on what a debt collector can and cannot do legally. While this federal law primarily applies to third-party debt collectors, many states, including Texas, have laws that extend similar protections to original creditors as well.

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