Dallas bankruptcy blog

Laid off because of COVID in Dallas? Bankruptcy can help

Even with many states opened up after the lockdowns caused by the coronavirus, many companies are filing for bankruptcy – several months without income, then slow business and mounting debt are an awful combination.

Many huge companies have filed for bankruptcy, and the list continues to grow. Well-known brands have declared bankruptcy, including J.C. Penney, Neiman Marcus, J. Crew, Gold’s Gym, Tuesday Morning, Bar Louie, Dean & DeLuca, Advantage Rent a Car, and Hertz.

Coresight Research is a company that tracks retail openings and closings, and at the beginning of 2020, they projected that 8,000 stores would close. In mid 2020, they updated their projection to 25,000.

These companies won’t necessarily go out of business – filing for bankruptcy allows protection during a restructure, so debt can be shed, operations can be redesigned, and low-profit locations can be closed. (more…)

By Mark Rubin|2022-06-01T11:13:32-05:00May 29th, 2020|Bankruptcy|

Filing bankruptcy because of the coronavirus

Over the last month, over 22 million Americans filed for unemployment because of the shelter in place orders that have been put in place to slow the spread of the novel coronavirus. Many small businesses have been absolutely crushed by the forced closure, and those that were able to pivot and provide modified services are still hurting due to the drastically reduced demand. If people aren’t leaving their homes, they’re simply not buying.

The number of jobless Americans is expected to continue to grow at an exponential rate. A research paper released in late March by the St. Louis Federal Reserve estimated that we could hit an unemployment rate as high as 32% – that’s about 47 million Americans.

That’s an almost mind-boggling number of people who won’t be able to pay their mortgage, rent, or other bills – let alone buy groceries and other essentials. It’s been estimated that over half of Americans have already lost some income due to the lockdown.

Federal, state, and local governments are working hard to provide financial safety nets – the Payroll Protection Program was rolled out and quickly depleted. Mortgage lenders and automotive finance companies are deferring payments, and if you meet the requirements, you’ll receive a federal stimulus check. Unfortunately, for the millions out of work, the government stimulus check simply won’t be enough to keep them afloat.

What should you do if you’ve been laid off?

Your first step should be looking at your budget. Figure out what you can do to save money immediately. Talk to your creditors, most will try to assist you if you’ve been laid off during the pandemic. Most mortgage, car, and credit card payments can be deferred. Student loans can be deferred as well. Many cities across the country have prohibited utility shut-offs – but skipping utility bills could lead to massive debt later down the road.

Once you’ve spoken to your creditors, you’ll have a better picture of your financial obligations. If you’ve got enough in savings, that might be enough to get you through the lockdown – but you’ll need to pay attention to how much you need to spend on essentials. You might be able to last longer by deferring non-essential bills and paying your minimum amount on others.

If you’re already at the point where the money has run out, or will run out in the near future, give us a call at 214-760-7777 – we’re happy to talk through your financial picture and let you know what your options are. It’s a free, no-pressure consultation – we’re not going to force you to file for bankruptcy, and in fact, might advise against it if there are better options on the table.

What will COVID bankruptcy look like?

If bankruptcy is inevitable, you’ll end up filing for either Chapter 7 or Chapter 13.

Chapter 7 bankruptcy allows you to wipe out your debts permanently, with no obligation to ever pay them back. Chapter 7 is best for individuals who aren’t able to pay back a significant portion (or all) of their debt. Typically, this is best when there’s a massive amount of credit card debt or a huge medical debt.

Chapter 13 bankruptcy is more of a reorganization of your debts. If you’ve got a regular income stream and have simply fallen behind, Chapter 13 is a better option. A plan is created to repay all (or most) of your debt with installment payments.

For both types of bankruptcy, you’d typically have to meet with an attorney and then go to court to get a judge to approve your case. During the COVID lockdown, everything can be done online. We can do everything over the phone or through virtual meetings, and the courts are allowing cases to be filed virutally so social distancing can still be observed.

If you’ve lost your job or been furloughed due to the coronavirus and you’re falling behind on bills, call us at 214-760-7777 – we’re here to help! Even if bankruptcy isn’t right for your situation, we’ll help point you in the right direction to help with your finances and plan for your future.

By Mark Rubin|2020-04-24T11:48:31-05:00April 24th, 2020|Bankruptcy, Texas Bankruptcy|

5 Tips to Avoid Credit Card Debt
5 Tips to Avoid Credit Card Debt

Bankruptcy

5 Tips to Avoid Credit Card Debt

Many of our bankruptcy clients come to us with completely out of control credit card debt – but that doesn’t mean they’ve been completely irresponsible. Thanks to higher interest rates and compounding interest, just a few missed payments can put you past a point where it’s nearly impossible to catch up.

Learning to manage credit card debt is a huge step in avoiding bankruptcy. If you follow these 5 simple tips, you’ll keep your credit cards under control and avoid spiraling credit card debt.

1. Set a budget and stick to it.

Credit cards make it far too easy to spend money you don’t have. If you know what you can spend each month, it will be easier to avoid those spur of the moment purchases that you can’t really afford.

2. Don’t carry a balance for more than 6 months

Compounding simple interest adds up quickly, and after about 6 months, you’ll end up with a much higher balance that’s hard to pay off. Think of your credit card interest as a small pebble that causes a huge avalanche… it starts off small, but quickly becomes a huge force.

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By Mark Rubin|2020-01-23T16:17:40-06:00January 23rd, 2020|Bankruptcy|

The Truth About 5 Bankruptcy Myths
The Truth About 5 Bankruptcy Myths

Bankruptcy, Bankruptcy Myths

The Truth About 5 Bankruptcy Myths

Most Americans don’t know much about bankruptcy – they’re limited to the knowledge they get from news stories and online gossip columns. Bankruptcy is much more common that most people realize, with over a million people filing for bankruptcy every year.

Generally, people assume that bankruptcy is meant for someone who can’t control their credit card spending. In reality, bankruptcy provides financial protection for much more than just credit card debt.

To help shed some light on bankruptcy and how it can help honest, hard working families, we’re sharing the truth about the five most common bankruptcy myths. As always, if you have any other questions, please call us for a free debt consultation – we’ll take as much time as you need to fully explain how bankruptcy works. (more…)

By Mark Rubin|2019-12-26T10:15:29-06:00December 26th, 2019|Bankruptcy, Bankruptcy Myths|

7 Tips for Saving Money and Avoiding Debt

As we’ve mentioned in the past, the easiest way to avoid bankruptcy is to avoid accruing debt in the first place. Millions of Americans live with thousands of dollars in debt, and a single bump in the road like a car accident or the loss of a job can send them spiraling towards uncontrollable debt.

The sooner you form responsible spending habits, the sooner you’ll build a solid foundation that will help avoid the possibility of bankruptcy. If you follow these 7 simple tips, you’ll be able to save money and avoid accumulating debts that you struggle to pay off.

1. Plan all of your meals

Eating out is the biggest monthly expense in most households. If you plan all of your meals each week and cook at home, you’ll save money – and you’ll probably eat healthier as well.

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By Mark Rubin|2019-09-28T16:37:15-05:00September 28th, 2019|Bankruptcy, Debt, Saving Money|

What can filing bankruptcy do?

Are you a good, honest, hard worker who’s fallen on tough times? It doesn’t take much for most Americans – an unexpected major accident, the sudden loss of a job, a major home repair… Any unexpected major expense can start the downward spiral into uncontrollable debt.

It happens to the best of people all the time – don’t beat yourself up. Out-of-control debt doesn’t mean you’re a bad person.

Bankruptcy was created specifically for situations like yours. When you file for bankruptcy, you get the help you need – and you get it fast. Here are some of the immediate benefits of bankruptcy:

Stop those nasty creditor calls.
Keep and protect your property.
Stop repossessions of vehicles.
Stop foreclosure on your home or other property.
Stop legal action.
Get released from credit cards, medical bills, personal loans and other unsecured debts you can’t afford.
Break out of the minimum payments trap.
Lower your total monthly payments by hundreds of dollars.
Get help catching up on important bills, like your mortgage and car loans.
Make catching up affordable, by stretching out the payment of overdue payments (up to 5 years, if need be).
Get released from certain old marital debts.
Get rid of certain older income taxes.
Get rid of mortgage foreclosure deficiencies.
Get rid of repossession deficiencies.
Start rebuilding your credit.

Bankruptcy offers emotional support as well:

Start enjoying life again without the worry of bills.
Reduce your stress level.
Start putting your family first.
Start sleeping at night.
Get your life back.
Get in a position to quit the second or third job.
Start your life moving forward again.
Feel like you stood up and took control.
Get a second chance for a ‘fresh start’.

Rubin & Associates can help you with all of these and more. Call us today for a FREE consultation at 214-760-7777 – we’ll listen to your story and walk you through all of your options. Let us help you get a fresh start today!

By Mark Rubin|2019-06-25T12:19:40-05:00June 25th, 2019|Bankruptcy|

Bankruptcy is debt insurance

Filing bankruptcy doesn’t mean you’re a bad person. Not at all, in fact. Most of the time, it just means you got stuck in a bad debt situation.

Lots of good, honest, hard-working people get stuck in bad debt situations. Most people who file bankruptcy are good people who’ve had a few bad things happen to them. One bad “bump in the road” can set you down the path to bankruptcy – the sudden loss of your job or a car accident is all it takes for most people.

Let’s face it, life can be brutal. That’s why you buy life insurance, and homeowners insurance, and car insurance. And that’s why you have bankruptcy.
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By Mark Rubin|2019-05-27T16:57:29-05:00May 27th, 2019|Bankruptcy|

How are credit scores computed?

Credit, by definition, is your ability to borrow money. Information that is included on your credit report could sway a potential lender one way or another in deciding whether to extend credit to you.

There are 3 major credit reporting bureaus:
Equifax
1-888-548-7878
www.equifax.com

Experian
1-888-397-3742
www.experian.com

TransUnion
1-800-916-8800
www.transunion.com

Under Federal law, you are entitled to a copy of a free credit report from each credit bureau each year. The credit bureaus have established a website in which to obtain a free copy of your credit report at www.annualcreditreport.com.

A credit report is more than just a list of the lenders and a person’s payment history. Credit reports contain information that can be used to help lenders determine whether to extend credit to you.

Here is a list of some of the things a credit report may list:

Anywhere you have applied for credit
Your name, Social Security Number, and your spouse’s name
Your current and previous addresses, name and address of your employer, as well as your income level
Information regarding lawsuits, foreclosures, repossessions, and whether you have filed for bankruptcy

Why are all these pieces of information listed on your credit report? Companies want to know whether you can be counted on to pay back your debts. Not only do lenders look at your credit report, but insurance companies look for risk factors on it, employers can use it to screen applicants, and landlords can use it to screen tenants to determine if they are likely to pay the rent on time.

Lenders use all of the information on your report to derive a credit score on you. A credit score is a number used to rate your credit worthiness. There are a number of different scoring systems. One scoring system is known as the Fair Isaac Corporation (FICO) Credit Score. This score ranges between 300 and 850. According to FICO, 40% of the population score at 690 or lower, while 40% score 745 or higher, with just 20% above 780.

Lenders want to know whether a borrower will repay a debt once a loan is extended. Then, the lender can use the score to determine how much to lend you, and what interest rate to charge you. Lenders assign points to the various aspects of your credit report.

Five factors are weighed most heavily when making this calculation:

Debt to income ratio. This is the proportion of how much total debt you have relative to your income level. This is the single largest factor that creditors consider in determining whether or not to extend a loan or other credit to you. Even if you have no balance on a credit card, your credit limit is still added to the debt side of your debt-to-income ratio.
Payment history. This factor considers whether you have paid your debts on time, including mortgages, car notes, credit cards, store accounts and loans.
Length of credit history. Lenders look to see how long you have paid on your debts. Good past payment history can help sway a lender to loan you money if you’ve had recent issues that could negatively affect your ability to get the credit.
Recent credit or applications for credit. If a lender sees that they are the tenth place this month that you are trying to borrow from, it could send up red flags.
The type of credit for which you are applying. Lenders that will retain a security interest in collateral, such as a car or mortgage company, may be more willing to lend money to more ‘at risk’ borrowers when the lender knows that they can always take back the collateral in the event of default on payments.

Other factors that lenders look at to determine who is a good credit risk are:

Education level. The higher the better.
Length of time at current residence. If you move around a lot, you lose points, but if you relocate for a better job and show your income is higher, that helps get you points.
Length of time at your current job. The longer you have been at your job, the better risk you appear to be.
Homeowner v. Renter. Homeowners are considered better credit risks than renters.

Creditors like stability. If you can show you are a stable, reliable person who has the ability to repay your debts, you will be a much better credit risk to a potential lender.

Everyone should always review his or her credit report periodically. Errors can be and are made. Just a few points can make or break your ability to acquire new credit. Therefore, it’s crucial to have an accurate credit report. Over the last few years, identity theft has become a bigger and bigger problem as well. An uncorrected error can cause years of stress and frustration. The credit reporting bureaus must correct any inaccurate information on your credit report, but you need to bring the inaccurate information to their attention. Once corrected, the bureau is supposed to send you a free copy of the credit report showing that the inaccuracy was corrected.

By Mark Rubin|2019-01-28T14:17:07-06:00January 28th, 2019|Personal Finance|

6 Tips to Keep Holiday Spending Under Control

It’s that time of year… Holiday shopping is stressful for everyone, but it’s especially tough for families that are already struggling with overwhelming debt. You don’t have to spend a fortune to have a happy holiday season! Follow these tips and you’ll reign in the spending and skip the spending stress.

1. Make your own list

Santa makes a list and checks it twice – you should too. It’s easy to get caught up in the gift-buying frenzy, but you don’t have to give gifts to everyone! Make a list of everyone you’re buying gifts for – aim for less than 6 people outside of your immediate family. For everyone else, bake cookies – it’s a more personal gift and lets you still acknowledge friends without breaking the bank. (more…)

By Mark Rubin|2018-11-30T15:21:08-06:00November 30th, 2018|Personal Finance|

More American seniors are filing bankruptcy

This year, we’ve seen more older Dallas-area residents filing for bankruptcy, which unfortunately, isn’t surprising. According to national study, more American seniors (over the age of 65) are filing for bankruptcy than ever before.

The cost of living continues to increase for everyone, and for many older Americans, combined with rising healthcare costs and increasing debt, bankruptcy becomes the only option.

According to the study, the average debt for families with a head of household over the age of 75 has increased drastically since 2010, when it was only $30,288. In 2016, the average debt for the same families was $36,757.

Even more shocking, the number of families 75 and older with debt increased a staggering 60% from 2010 to 2016.

The average Social Security check is only $1,404 a month, and according to government data, that check accounts for more than 90% of the monthly income for over 40% of single seniors.

If you’re a DFW area senior and you’re struggling with debt, or your monthly expenses always exceed your monthly income, we can help! Call us today at 214-760-7777 for a free consultation. We’ll walk you through your options, so you’ll feel confident that you’re making the right step to move forward.

By Mark Rubin|2018-10-30T13:51:36-05:00October 30th, 2018|Bankruptcy, Bankruptcy Statistics|

Information and tips about bankruptcy and debt solutions

Dallas Bankruptcy Information

Overwhelming debt can be stressful - we are here to help

5 Tips to Avoid Credit Card Debt

The Truth About 5 Bankruptcy Myths