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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.
Have you heard one of our commercials on the radio? Our Dallas bankruptcy attorneys have helped thousands of local people save their property… Here are a few of our most recent radio spots:
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.
It’s no secret that student loan debt is a problem in America. Tuition costs continue to skyrocket, and paired with shrinking government financial aid, student loan debt is now the number one debt problem for young Americans.
Just two weeks ago, Congress failed to stop an automatic interest rate hike for Federal Stafford Loans, which doubled interest rates from 3.4% to 6.8% – so the problem just compounded for undergrads across the country. The student loan situation looks pretty bleak for future generations as well.
We stumbled across this infographic this morning and had to share it. It shows the history of college tuition and student loan costs from the 1940’s to today. A few of the staggering stats include: (more…)
Two children, two incomes, a home with a white picket fence; it’s the quintessential American Dream. However, this American Dream has morphed into a survival regimen that many families simply cannot endure.
Parents are in worse economic shape than ever before. Married couples with children are twice as likely as childless couples to file bankruptcy. According to the authors of the book, “The Two Income Trap,” having a child is the best indicator of whether someone will end up in financial collapse. The book was written by Elizabeth Warren and Amelia Tyagi, a mother and daughter team (Harvard law professor and MBA) who did an extensive study on the nature of bankruptcy in America.
The authors maintain that the introduction of mothers into the workforce, rather than easing the financial strain of raising a family, sets their families up for financial disaster as the cost of raising children spirals out of control. More children will go through their parents’ bankruptcy than their parents’ divorce. One in seven middle-class families will file bankruptcy this year. These figures are staggering for middle class families.
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…)