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Here’s another one of our recent radio commercials. We’ve helped thousands of Dallas families get a fresh start through bankruptcy – we can help you too! Call us today for your free consultation and we’ll answer all of your questions
Why do most people file for bankruptcy? To wipe out their debts. Bad things happen to honest, hard working people, and bankruptcy can be just what’s needed to get a fresh start.
Obviously, it’s an unfamiliar process to most people. We’ll often get nervous phone calls from clients after they Chapter 7 cases have been filed because they haven’t heard anything about their discharge.
It’s important to remember the standard case timelines and time limits set down by the law. A “meeting of creditors” usually takes place about a month after the bankruptcy case is filed. After the meeting happens, the creditors and bankruptcy trustees have 60 days to object to the discharge. Add that all together, and you’re looking at about three months until the discharge occurs. Typically, a Chapter 7 bankruptcy case in Dallas takes about 4 months.
So – all those awful things you’ve always heard about bankruptcy… Did you know that almost all of it is completely untrue? Some of it is rumor, some of it is urban myth, and a lot of the stories are perpetuate by creditors who want you to be scared of bankruptcy.
Check out these top 16 myths about bankruptcy. Since it’s a long post, we’ve listed the myths and linked each one to its explanation.
Let’s Learn About Chapter 13 Bankruptcy
(aka our ‘Debt-Survival’ plan)
Most of the bankruptcy laws are set forth in Title 11 of the United States Code, which is divided into chapters. For instance, there is Chapter 7 (sometimes called “total bankruptcy”, but that term is misleading), Chapter 13 (sometimes loosely referred to as the “bill consolidation” version of bankruptcy or a “wage earner plan”), Chapter 12 (bankruptcy for the family farmer), and Chapter 11 (bankruptcy for huge corporations).
The 2 chapters available to most people in need of help are Chapter 7 and Chapter 13. This post is going to cover Chapter 13.
The best way to do explain Chapter 13 bankruptcy is to compare it to Chapter 7. If you’re not familiar with Chapter 7 bankruptcy, click the link to read more information.
The question we hear the most from our clients is always “Am I eligible for Chapter 7 bankruptcy?”
For Chapter 7 bankruptcy, the answer is usually fairly easy to determine. The bankruptcy “means test” is used to determine whether your income is low enough for you to file Chapter 7 bankruptcy. It’s a simple formula designed to keep filers with higher incomes from filing for Chapter 7 bankruptcy. If your income level is too high, you won’t be allowed to wipe out your debts with Chapter 7, but you’ll be able to use Chapter 13 bankruptcy to repay a portion of your debts.
Don’t be discouraged though – you don’t have to be penniless or even have a low level of income to qualify through the Chapter 7 means test. If you have a lot of expenses, such as a high mortgage payment, you can have a significant monthly income and still qualify for Chapter 7 bankruptcy. (more…)
Do I have enough debt to file bankruptcy?
That’s a good question.
Many, if not most, of our clients eliminate a substantial amount of debt in filing a bankruptcy case. However, this is not the only criteria. A good number of our clients do not have any unsecured debt. They are behind on home and/or car payments and need some relief to catch these payments up. Other clients want to rebuild their credit. There are so many criteria in deciding whether to file a bankruptcy case that it is important to seek the advice of an experienced bankruptcy attorney who can walk you through all the different options that are available to you.
One question that we hear all the time is “can I file for Chapter 13?” Chapter 13 bankruptcy has several important restrictions. If you’re looking for a solution to your debt problems, your first step is to see whether or not you legally qualify for a Chapter 13 Bankruptcy.
Businesses Cannot File for Chapter 13 Bankruptcy.
Corporations and Partnerships cannot file under Chapter 13 Bankruptcy. On the other hand, if you own a business as a sole proprietor, you can file for Chapter 13 bankruptcy as an individual and include the business-related debts for which you are personally liable.
You Must Have Stable and Regular Income.
You must have stable and regular income to be eligible for Chapter 13 bankruptcy. That does not mean you must earn the same amount every month, just that the income is steady. In other words, your income must be likely to continue and it must be periodic – weekly, monthly, quarterly, semi-annual, seasonal or even annual. Here is a list of some types of income you can use to fund a Chapter 13 plan: (more…)
Last week we discussed the benefits of filing Chapter 7 bankruptcy. While it has some pros, it’s not always the right fit for everybody. That’s when you look at Chapter 13 bankruptcy.
Today we’re going to explore five main reasons why people choose to file Chapter 13 bankruptcy.
The second you file Chapter 13 bankruptcy, banks and other creditors have to cease their collection efforts. That means that they can no longer foreclose on your house or repossess your vehicle.
This halt in collections can be stopped for the entire duration of the case, which can last as long as five years, whereas with a Chapter 7 bankruptcy, the creditors must only stop for a few months.
Filing for Chapter 7 bankruptcy is arguably the best plan for eliminating debt. It can wash away certain types of debt for good, cleanse you of your stress and financial worries, and free up income for your family. Best of all, it can give you a fresh start to rebuild your credit.
Here’s a more complete list of what Chapter 7 can do for you:
Repossession is not a fun thing. Losing your car, truck, motorcycle or boat can be embarrassing and inconvenient.
But just like anything in life that people hope to avoid, there are a few misconceptions that the general pubic has about the process of repossession.
If you find one of your vehicles in danger of being repossessed, the best weapon is knowledge. With that, you will be able to make informed decisions.
This is absolutely untrue. While bill collectors generally wait until at two or three months worth of missed payments, they can take your vehicle away if one payment is one day late.