Struggling in a financial situation is stressful enough without worrying if you are picking the right bankruptcy lawyer. However, picking the wrong attorney can be the first blunder that gets a case rejected. The first step toward debt relief is picking an experienced San Antonio bankruptcy attorney. A good attorney will explain the basics of [...]
In the past, we have spoken extensively about ways to take charge of your financial life. This has included advice geared specifically towards keeping your home and pursuing lower monthly payments, primarily by contacting a Chapter 7 bankruptcy attorney in San Antonio. However, if you are in a position where your financial missteps have taken over the rest of your life, it is time to start taking your debt relief seriously. Our expert bankruptcy lawyer recommends the following steps.
Debt Relief Must Become Your Number One Priority
Too many people believe that they can hold off on seriously pursuing debt relief, thinking, “I’ll have more money next month,” or that “things will even out in the end.” A Chapter 7 bankruptcy attorney in San Antonio knows that the longer you wait to settle your debt, the worse your debt will become. If you are in over your head and debt collectors are calling you around the clock, it is time to make debt relief your top priority.
You Do Not Have to Do it Alone
There is a lot of shame associated with filing for bankruptcy in this country, which, unfortunately, leads to more and more people attempting to battle their debts on their own. To tackle debt effectively, people in financial duress should be getting in touch with a Chapter 7 bankruptcy attorney in San Antonio.
Do not delay, as debt relief is just a phone call away. Attorneys often have lower monthly payments than credit card companies do, and a qualified debt relief lawyer knows how to get the debt collection companies off of your back forever. As soon as you file, the calls will stop automatically.
It is Not the End of the World
Above all else, you must remember that contacting a Chapter 7 bankruptcy attorney in San Antonio is not the end of the world, nor is it the end of your financial freedom. Bankruptcy exists to help people get the debt relief that they so desperately need.
If you are in a dire financial situation, help is available. Contact a Chapter 7 bankruptcy attorney in San Antonio today, and get on the road to financial freedom!
If you have found yourself in a situation where debt collectors are calling you constantly, you are probably feeling scared, stressed out and hopeless. The good news, however, is that it is more than possible to come back from this situation. San Antonio bankruptcy attorneys know that there are more than a few common sense ways that you can find debt relief, even if the collectors are calling you around the clock.
1. Prioritize Your Financial Well-Being.
If you have debt collectors calling you around the clock, it may be time to prioritize your financial well-being over everything else. This is the time to sit down with your spouse or partner (if you have one) and list all the debts you have that need to be paid. Once you have a clear picture of what debts need to be paid, you can develop a plan of how to pay it all off. A San Antonio bankruptcy attorney can help with this if you’re both feeling overwhelmed.
2. Cut Spending and Sell Non-Essential Items.
The first step you are going to have to take if you have debt collectors calling you is to cut spending on non-essential expenses. Obvious examples of things to cut include dining out and entertainment expenses, but you may need to get more creative. Look at everything that you currently spend money on and find ways to spend less. This may mean finding someone to carpool with to work or cutting cable and internet service at home. Finally, you may also want to investigate selling non-essential items, like a second car or unused furniture or musical instruments. Use the money you make from the sale to pay off debts.
3. File For Bankruptcy.
No one wants to file for bankruptcy, but it is the quickest and most efficient way to get debt relief and often lower monthly payments. If you think that bankruptcy may be the best option for you, consult a Chapter 13 bankruptcy attorney in San Antonio, who will be able to walk you through the process. One of the best things about filing for bankruptcy is that calls from debt collectors will stop immediately. Furthermore, after filing for bankruptcy, you will have lower monthly payments as you work towards paying off your debt.
If you are like most people, you have been wisely saving whatever you can toward your eventual retirement, despite your rising debts. Now that you find yourself on the brink of filing for bankruptcy with your San Antonio bankruptcy attorney, you may wonder whether you will be able to keep that money, which was intended to provide for you and your family after you are no longer able to work.
The good news is that you don’t need to worry. As your San Antonio bankruptcy attorney knows, much of what you have set aside for your retirement is exempt from bankruptcy proceedings. This means that your retirement funds cannot be garnished by the court or its bankruptcy trustees.
Exemptions Protect Filers
It is an unfortunate misconception that bankruptcy results in a court-ordered truck loading up everything you own, to be sold off to settle your debts. In fact, most of the possessions required for a normal, comfortable life are exempt from the bankruptcy proceedings. Your Chapter 7 bankruptcy attorney in San Antonio can explain more, but generally your car, household goods and personal effects are exempt from bankruptcy proceedings. Furthermore, your retirement savings are exempt, as long as they have been saved in a 401K, IRA or similar account. A Chapter 13 bankruptcy attorney in San Antonio can discuss with you which of your belongings and savings will be exempted.
Things to Consider about your Retirement Savings and Bankruptcy
Even though your retirement savings accounts are exempt from garnishment during bankruptcy, there are some major things to consider before you file for bankruptcy with your San Antonio bankruptcy attorney. First, and especially if you are self-employed, be sure that your retirement savings account has been set up to meet the qualifications for exemption. Your Chapter 7 bankruptcy attorney in San Antonio can explain those qualifications to you before you file. Many self-employed people believe that their retirement savings accounts are exempt, only to later find that the account has not been properly set up. Additionally, you must be careful not to preferentially dump money into your retirement account in the six months prior to filing for bankruptcy. This is called a “fraudulent conveyance” and could possibly result in your retirement savings account’s inclusion in the bankruptcy.
There are many reasons why a bankruptcy case would be dismissed. With the help of an experienced San Antonio bankruptcy attorney, you can avoid making the majority of these mistakes so that you have a clearer path to debt relief. A Chapter 13 or Chapter 7 bankruptcy attorney can assist you in thoroughly preparing for every aspect of your bankruptcy case. Individuals filing for bankruptcy often face the following problems, but many of these issues are completely preventable.
This is a huge problem! When you file for bankruptcy, there is a whole slew of paperwork that is required to prove your eligibility. If you make one simple mistake, your case may be thrown out. A bankruptcy lawyer can help you to fill out all of the appropriate papers based on the nature of your case.
Failing the Means Test
Although you may not be able to control the results of the means test, failing the test does not mean that you cannot file for bankruptcy. If you work with an experienced Chapter 13 bankruptcy attorney, he or she can asses the situation of your finances to determine whether you qualify for Chapter 7 or Chapter 13 before the means test is even conducted. If you are not eligible for Chapter 7 bankruptcy, a Chapter 13 bankruptcy attorney can assist you in filing for reorganization and lower monthly payments under Chapter 13.
Missing the Creditor Meeting
In many states, failure to attend your creditor meeting can result in a case being dismissed. Although meeting with your creditors may sound intimidating and unappealing, the actual meeting is relatively quick and painless in most cases. With the support of your lawyer, you must answer questions under oath to clarify the state of your finances. Often, creditors won’t even show up.
Failure to Disclose Assets
If you attempt to mislead your creditors and the court in any way and it is discovered, your entire case will be dismissed immediately. Fraud of this sort might include concealing assets or withholding tax information. In the event that someone suspects you of defrauding the court, they can challenge your bankruptcy case. In order to avoid this type of dismissal, be completely honest with your San Antonio bankruptcy attorney about the state of your finances and assets.
Life after bankruptcy can be both exhilarating and terrifying. With the help of your Chapter 7 bankruptcy attorney in San Antonio, you are in the midst of a fresh start in the wake of your debt relief. Even if you filed for Chapter 13 bankruptcy with an attorney in San Antonio, you can see light at the end of the tunnel when you complete your payment plan for lower monthly payments at the end of 3 to 5 years.
You San Antonio bankruptcy attorney will assure you that it is a myth that it will be impossible for you to buy a home or a car as you rebuild your credit. This is true, but as you start your new life, it is crucial to make a plan and change your lifestyle in order to avoid falling into the old routines that brought on bankruptcy.
Chapter 7 or Chapter 13 bankruptcy will remain on your credit report for 10 years. During that time, you must demonstrate that you have learned from your mistakes and are working to rebuild a better lifestyle. Even while your bankruptcy is on your credit report, there are many steps that you can take to reestablish your good credit.
How To Regain Good Credit Scores
The first step that you must take is to develop a reasonable budget and then stick to it. Your bankruptcy lawyer will be able to assist you in finding wise counsel in regards to your budget. Cut out any unnecessary expenses and avoid making large purchases. It is essential to develop a barebones lifestyle for the time being so that your resources can go towards improving your credit. In addition, reducing expenses allows you to build up your savings in order to avoid future catastrophe.
Be smart about opening new credit accounts. You may find the process of obtaining credit cards challenging and expensive in the aftermath of your bankruptcy case. No matter what, make your credit card payments on time. You might find it easier to live on cash in order to more closely monitor your budget.
Most importantly, make all payments on time, whether they are for your credit card, your mortgage, or your electrical expenses. Focus on diverting money towards savings and consider utilizing a secured credit card. Finally, maintain a positive attitude – however challenging the current circumstances may seem, they are massively improved from where you were before you filed for bankruptcy.
In considering a Chapter 7 or Chapter 13 bankruptcy attorney in San Antonio, it is important to understand the differences between the two cases. Either option will give you immediate debt relief, as a court order bans all creditor harassment once you file. A San Antonio bankruptcy attorney can clarify for you the expectations and results of a bankruptcy case, whether is it Chapter 7 or Chapter 13.
Chapter 7 considerations
If you file for Chapter 7 bankruptcy with an attorney in San Antonio, your debts will be discharged and assets that are not exempt will be liquidated to repay those debts. Eligibility for Chapter 7 is determined through a “means test.” Debtors with an income higher than the state median income are generally disqualified.
What are the advantages of filing for Chapter 7 bankruptcy? Most importantly, the majority of debts are completely forgiven. Debt collectors must stop harassing you and your family. In Texas, further advantages come from the state’s liberal exemption laws.
However, there are many negative repercussions to be considered as well. Although most debts are forgiven, certain financial obligations cannot be discharged, such as student loans, taxes, and child support. Bankruptcy remains on your credit score for ten years. A Chapter 7 San Antonio bankruptcy attorney can help you decide if a Chapter 7 case is appropriate for you.
Chapter 13 issues
A Chapter 13 bankruptcy attorney in San Antonio will explain to you the benefits of choosing debt consolidation as opposed to a discharge with Chapter 7. When you file Chapter 13 bankruptcy, you are granted lower monthly payments in order to achieve your debt relief. A repayment proposal must be submitted to the court that suggests a reasonable plan for repayment of your debts based on your income.
The pros of a Chapter 13 bankruptcy case include the protection of your assets under the Texas exemption laws. These exemptions will reduce the amount of money that the court deems you must repay. Choosing Chapter 13 allows you to continue with lower monthly payments in your plan. A lawyer can assist you in understanding how the Chapter 13 laws apply to you.
For a reliable San Antonio bankruptcy attorney, contact us.
If you are facing bankruptcy, a San Antonio bankruptcy attorney can help you to understand your rights. A Chapter 7 bankruptcy attorney in San Antonio can help get you debt relief and lower monthly payments. These lawyers will explain Texas exemption laws, which are generous. With a Chapter 7 or a Chapter 13 bankruptcy attorney in San Antonio, you can claim a fresh start.
Texas Exemption Advantages
A San Antonio bankruptcy attorney will explain that you can choose between claiming federal exemptions or state exemptions. Texas exemptions are some of the most liberal in the nation, so Texans filing bankruptcy rarely choose federal exemptions. Generous exemptions allow you to reduce the figures that must be repaid in a Chapter 13 bankruptcy, meaning lower monthly payments.
Texas laws offer debt relief through a generous Homestead Exemption. If you own no more than 10 acres in a town or city, or no more than 100 acres in the country, Texas exemptions entitle you to keep your home, no matter the value. However, if your homestead is worth more than $146,450, you must be able to prove at least 40 months of residence. One caveat could be that if you have recently moved to Texas, you are likely beholden to the exemption laws of your former state of residence. A San Antonio bankruptcy attorney can be of assistance in determining how the Texas property exemption laws apply to you.
When filing for bankruptcy, an individual with a driver’s license can claim an exemption for one car. If you have a family, each member with a valid license is entitled to protect the worth of one car. A lawyer can help you to claim this form of debt relief.
Personal property exemptions
Again, a Chapter 7 bankruptcy attorney in San Antonio will assure you that the Texas personal property exemption laws are extremely generous. An individual can protect up to $30,000 worth of personal property, while a family is entitled to protect as much as $60,000. These exemptions are often enough to allow total asset protection.
Contact us for expert advice from a San Antonio Bankruptcy Attorney.
There are certain types of debts including credit card debt listed in your bankruptcy that may be discharged whenever you file for Chapter 7 or 13 bankruptcy. When a debt is discharged in bankruptcy the debt is forgiven. Whenever a particular debt in discharged, you are relieved of legal responsibility for the debtor and can never be forced to pay it back. Your creditors will be prohibited from suing you or taking legal action to enforce the debt. They are also prohibited from calling you, sending your demand letters, or harassing you in any way.
From a legal standpoint, the term "discharge in bankruptcy" refers to a permanent order issued by a federal bankruptcy judge that forbids credit card companies and other nonexempt creditors from collecting on an existing debt that were listing in your bankruptcy. The term "discharge in debt" actually refers to one or all of the debts covered by the order.
The timing of the discharge will depend on the chapter under which a debtor files. With a Chapter 7 Bankruptcy, the court typically grants a discharge relatively fast. Generally around 4 months after the petition is filed. Chapter 13 grants debtors a temporary reprieve from creditor harassment and may also allow them to keep their home or car. Under this chapter, you must pay back credit card debt and other nonexempt debts within a certain period of time than ranges between 3 to 5 years. After this specified time period and repayment schedule, the debt is considered discharges.
Usually the biggest detriment of bankruptcy is its negative impact on your credit score. However, this may not be an issue for many people because they already have bad credit or they soon will because they lack the ability to stay current on their debts. If a person has suffered, or will soon suffer from, a home foreclosure, a vehicle repossession, or extended credit card delinquencies or write-offs, a bankruptcy will probably not make his credit any worse. Additionally, having a poor credit score doesn't mean you can’t get credit. It just means that some loans will be tougher to get and you may have to pay higher interest rates on large purchases like furniture, cars and homes.
There comes a time when bankruptcy is unavoidable. You may need to file to save your home or your bills are consistently higher than your income. Whatever the reason, filing bankruptcy can be a new beginning. You credit score may be hurt for a time, but if you use that time properly, you can start on the road to a new financial future and a better credit score.
To see if filing bankruptcy is for you, call a bankruptcy attorney. Most provide an free initial consultation.