Posted on April 23, 2025 in Bankruptcy

The most obvious among the benefits of bankruptcy is the relief that comes from removing or reducing oppressive debt. However, it will negatively impact your credit score, immediately and in the long term. The good news is that this is not a permanent change. Exactly how your credit score and report are affected depends on the type of bankruptcy you file. An experienced Brazoria, TX bankruptcy attorney can explain the legal options you have for bankruptcy, the pros and cons of each, and the factors considered when deciding which type of bankruptcy best suits your situation.

What Happens to Credit Immediately After Filing for Bankruptcy?

Chapter 7 and Chapter 13 consumer bankruptcies are the two most commonly filed. Immediately after you file, meaning within the first few months, you can expect to see a drastic dip in your credit score. The reasons for this nearly instant drop include:

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 Posted on April 15, 2025 in Creditor Harassment

It is late in the evening and you receive a phone call from an unknown number. Concerned, you pick up. On the other line is a debt collector calling about a debt whose repayment you have been trying to negotiate with the creditor. They start angrily threatening that they will come and impound your car tomorrow to pay back the debt and will call your employer to tell them that you are a deadbeat. You hang up, but you keep getting repeated calls from this number. If this scenario sounds familiar, you have been the victim of creditor harassment. This type of harassment is illegal, and there are ways you can protect yourself. An experienced Montgomery County, TX creditor harassment attorney can help.

What Laws Protect You Against Creditor Harassment?

State and federal law protects you against creditor and debt collector harassment. The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from harassing you. The Texas Finance Code Chapter 392 also prohibits threatening or abusive behavior from creditors and debt collections.

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 Posted on April 06, 2025 in Bankruptcy

In Chapter 13 bankruptcy, you make a payment plan to repay your debts over three to five years. Otherwise known as the "wage earner’s" bankruptcy, Chapter 13 is meant for individuals who have more debt than they can handle, but also have a regular income they can use to make reasonable payments as part of the plan. What happens if the person who filed Chapter 13 can no longer make the payments, either because they lost the income source or for another reason? An experienced Fort Bend County, TX bankruptcy attorney can advise individuals facing difficulty making their Chapter 13 payments. 

What Happens If You Miss a Chapter 13 Payment?

You must begin making payments on your Chapter 13 plan within 30 days of filing. If at any point, your payment is a few days late, this likely will not be an issue. However, if the payment is significantly late or if you missed it altogether, that would be considered a breach of your payment plan agreement with the court. It could either result in your case being dismissed, in which case your debt would not be discharged or paid up, or it could be converted into a Chapter 7 bankruptcy. 

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 Posted on March 31, 2025 in Bankruptcy

Unfortunately, medical care is expensive, and a significant medical event can be even more so. As a result, many Americans have significant medical debt. The question is, can bankruptcy be a way out of this medical debt, and is it a good idea to file for bankruptcy to get rid of medical debt? The good news is that much medical debt can be discharged in bankruptcy. In fact, by some estimates more than half of all bankruptcies are medical bankruptcies. An experienced Harris County, TX bankruptcy attorney can advise on filing for what is sometimes called a medical bankruptcy–meaning filing for bankruptcy specifically to discharge medical debt.

Does Bankruptcy Get Rid of Medical Bills? 

The short answer is yes, bankruptcy can get rid of medical bills. Medical debt is considered unsecured debt, which is not backed up by collateral such as a home or personal property, and that type of debt is dischargeable in bankruptcy. Additionally, if you paid for your medical expenses with your credit card, credit card debt is generally also dischargeable in bankruptcy.

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 Posted on March 26, 2025 in Chapter 7 Bankruptcy

Education is often a key to success in today’s world, not to mention a worthy goal on its own. Education – and particularly higher education – can be expensive, however. With the cost of the average college tuition at private universities at just over $40,000, education will, for most people, require taking on significant debt.

When unexpected events in life make that debt unmanageable, some may consider filing for bankruptcy. They may wonder whether it is possible to discharge student loans in bankruptcy. An experienced Texas Chapter 7 bankruptcy attorney can provide advice on whether bankruptcy is the right option to discharge student loan debt. 

What Happens to Student Loan Debt in Chapter 7 Bankruptcy?

In a Chapter 7 bankruptcy, also called "liquidation" bankruptcy, most of your credit card or medical debt can be discharged. Student loans are treated differently in Chapter 7, however, Although it is possible to discharge student debts, you will usually have to show that paying back that debt would cause you significant hardship. 

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 Posted on March 15, 2025 in Bankruptcy

Most people are intensely private about their financial situations. Deciding to file for bankruptcy is often accompanied by negative feelings, including shame. Although filing may be your best option for debt relief, you may not want your family and friends to know.

Bankruptcies are filed in federal courts, and most become public records. However, do not let that fact keep you from exploring the potential advantages that filing for bankruptcy could provide. Accessing bankruptcy records requires specific steps that most people do not have reason to take. When an experienced Houston, TX bankruptcy attorney helps with your case, you can trust that our interactions remain confidential.

How Can Bankruptcy Records Be Accessed?

With few exceptions, papers filed in a bankruptcy case are open to the public. For someone to access your bankruptcy records, he or she may have different reasons. You may want to check on your case’s current status, or a potential landlord or employer may need to run a background check. The U.S. government allows online access to electronic public records, which include bankruptcies. The PACER system requires you to create an account, and you will be charged a nominal fee when you access data through the site.

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 Posted on March 08, 2025 in Creditor Harassment

When a creditor garnishes your wages they take a portion of your paycheck even before it is deposited into your bank account to be used towards repayment of your debt. Wage garnishment can be personally and financially devastating, making it more difficult to pay bills on time and potentially adding to your debt. The very good news is that in Texas wages cannot be garnished except to pay very limited types of debts, and these do not include credit card debt. Read on to find out how an experienced Brazoria, TX wage garnishment relief attorney can help you with wage garnishment.

What Types of Debts Can a Creditor Garnish in Texas?

Texas law does not allow wage garnishment except for child support payments and alimony debt. The other types of debt that can be garnished in Texas are federal income tax debt and federal student loans.

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 Posted on February 28, 2025 in Chapter 11 Bankruptcy

Chapter 11 bankruptcy is known as the "reorganization" bankruptcy that allows filers to reorganize their debt. It is usually utilized by businesses wishing to file bankruptcy while continuing to operate their companies.

Yet Chapter 11 bankruptcy is not just for businesses. Individuals may also qualify to file for Chapter 11 bankruptcy, and in some cases may have to file for Chapter 11 if they do not qualify for Chapter 13. An experienced Houston, TX Chapter 11 bankruptcy attorney can answer your questions about whether filing for Chapter 11 bankruptcy as an individual is the right choice for you. 

How Does Chapter 11 Bankruptcy For Individuals Work?

Eligibility

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 Posted on February 20, 2025 in Bankruptcy

Filing for bankruptcy is a complex and personal decision. One of the factors influencing the decision to file for bankruptcy may be concern about the bankruptcy process itself. After all, bankruptcy is a complex legal process. If you are wondering whether bankruptcy is right for you, you may have questions about the role of the bankruptcy attorney. Speak to an experienced Liberty County, TX bankruptcy attorney who can explain the role of the bankruptcy attorney.

Help You Decide Which Type of Bankruptcy to File

One of the key roles of a bankruptcy attorney is to provide legal advice based on your specific situation as it applies to bankruptcy law. Your bankruptcy attorney will explain the bankruptcy process to you and answer any questions you may have. Your attorney will, for example:  

• Advise you on the benefits of filing Chapter 7 versus Chapter 13 bankruptcy, and which type is right for you.

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 Posted on February 14, 2025 in Bankruptcy

Businesses facing financial distress and considering bankruptcy may file Chapter 7 bankruptcy. Another option for many businesses is Chapter 11 bankruptcy, which is commonly known as the "business bankruptcy" because it is primarily meant for businesses. It is also referred to as the "reorganization" bankruptcy because it allows businesses to reorganize their debts while staying in business.

As of 2019 Congress and the Small Business Reorganization Act (SBRA) created a third option for businesses called Chapter 11 Subchapter V, which offers a more affordable and simplified method that can be especially attractive for small businesses. An experienced Texas bankruptcy attorney advises businesses on the pros and cons of the relevant bankruptcy chapters available to businesses in financial trouble.

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