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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 Posted on July 31, 2024 in Bankruptcy

Life rarely follows a predictable path, and sometimes multiple challenges happen at the same time. Financial distress and marital dissolution coincide for some people, creating a complex legal and financial situation. When bankruptcy and divorce intersect, you should understand how these two significant life events interact and influence each other. A Texas lawyer can help you manage bankruptcy and divorce simultaneously, offering legal guidance to protect your rights and help you navigate this challenging terrain.

Bankruptcy First or Divorce First? Choose Wisely

The order in which you file for bankruptcy and divorce can significantly impact both processes. Filing for bankruptcy before a divorce can simplify debt division in divorce proceedings, potentially reducing the debt burden for both parties and possibly freeing up more marital assets for division.

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 Posted on July 19, 2024 in Foreclosure

Homeownership is a significant milestone, but it comes with substantial responsibilities. One of the most vital obligations is adhering to your mortgage repayment terms. Violating these terms can lead to serious consequences that may jeopardize your homeownership status. A Texas foreclosure prevention lawyer can help you understand what happens when you breach your mortgage agreement and provide insights on how to get through this tricky situation.

What You Should Know About Mortgage Violations

A mortgage violation occurs when you fail to meet the terms outlined in your mortgage agreement. Common violations include missing payments or consistently making late payments, failing to maintain adequate homeowners insurance, neglecting to pay property taxes, using the property for purposes not permitted by the mortgage agreement, or failing to maintain the property in good condition.

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 Posted on January 26, 2024 in Chapter 7 Bankruptcy

Financial challenges can arise unexpectedly, leading individuals to explore options like Chapter 7 bankruptcy for relief.

If you find yourself considering this route, you might be wondering about the fate of your retirement accounts.

Chapter 7 bankruptcy basics

Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” involves the sale of non-exempt assets to settle debts. This process helps provide a fresh start for individuals overwhelmed by financial burdens.

The protection of retirement accounts

Retirement accounts are a lifeline for many individuals. They represent years of hard work and disciplined savings. The good news is that, in many cases, these accounts are not part of liquidation during Chapter 7 bankruptcy proceedings.

Qualified retirement accounts

Qualified retirement accounts, such as 401(k)s and IRAs, are typically safeguarded. These accounts enjoy protection up to a certain limit. This ensures that you can maintain a financial cushion for your post-working years.

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