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Tyler Texas Bankruptcy Law Blog

Model act aims to help those with overwhelming medical expenses

A serious illness or injury can strike anyone in Texas without warning. When this happens, a person may need treatment in a hospital along with ongoing care even after they are released from the hospital. This is when the bills start rolling in. From the ambulance ride, to the radiology and lab tests, to the surgical procedures to the anesthesia, having a serious injury or illness can take its toll not only physically, but also financially.

Unfortunately, even those who have health insurance can find themselves unable to cope with their medical bills. A person may have a high deductible to meet, certain procedures may be excluded from coverage or they could have unknowingly been treated by a physician that was out-of-network. All of this can lead to medical expenses that are simply too much to cope with.

RadioShack exits the bankruptcy process, with a different outlook

For years people in Texas and across the nation flocked to RadioShack to purchase electronics. However, the retailer fell on hard times, and eventually filed for bankruptcy twice. In fact, it has recently completed its second bankruptcy, but things are not the same as they once were.

Following this second bankruptcy, RadioShack will be first and foremost an online retailer. However, as many as 28 brick-and-mortar locations owned by RadioShack will remain open, as will a so far unknown number of independent stores. RadioShack estimates that it's yearly revenue could be as much as $17.5 million.

Dealing with the constant harassment of collection attempts

If you are constantly dealing with an overwhelming amount of debt, chances are you may be no stranger to collection calls and letters. Unfortunately, this may do little to ease the stress of the situation, and ignoring the problem will do little to make it go away.

In some cases, you could be on the receiving end of a wrong phone number and continue to grow weary as the problem persists, despite your efforts to rectify the situation. If you feel as though a creditor is passing the boundary of what is legal, you could be the subject of creditor harassment.

Don't believe everything you hear about filing for bankruptcy

No one in Texas decides to file for bankruptcy on a whim. In fact, there are many misconceptions circling around regarding the "perils" of bankruptcy. However, just like anything else, don't believe everything you hear.

First, a person may not lose everything when they file for bankruptcy. Most people who file for Chapter 7 bankruptcy file what is known as a "no asset" case, meaning they get to keep most of their property. This is because state law exempts many types of possessions from the liquidation process. Also, since many of a debtor's possessions aren't worth very much or may still have a lien on them, a creditor would have no interest in them. Moreover, if a debtor qualifies for Chapter 13 bankruptcy, then none of their assets will be liquidated.

How does Chapter 7 compare to Chapter 13 bankruptcy?

Sometimes a person in Texas finds that they simply have more debts than they can pay back. This can be very stressful, especially when a person is being hounded by debt collectors or even threatened with foreclosure or a lawsuit. Fortunately, people in this situation may receive debt relief via a Chapter 7 or Chapter 13 bankruptcy filing.

In a Chapter 7 bankruptcy, a person's assets are liquidated, and the proceeds are used to pay back the person's creditors. While the idea of losing property to the bankruptcy process may be frightening, in 95 percent of Chapter 7 filings the value of the person's property does not cross the legal threshold and therefore the person will not have to relinquish any property. A Chapter 7 bankruptcy filing usually takes around three to four months to complete. It is a viable option for those who cannot pay back their creditors. In fact, around 96 percent of those who file for Chapter 7 bankruptcy will have their debts extinguished, meaning the debtor no longer has to make any payments on them.

Rebuilding credit after Chapter 7 with a secured credit card

People in Tyler may want to file for bankruptcy, but may be concerned about how it will affect their credit. While it is true that a person's credit score will take a hit after filing for Chapter 7 bankruptcy, it is not something that cannot be overcome with time. In fact, it may even be possible to obtain a credit card after completing the Chapter 7 bankruptcy process.

After bankruptcy, a person may be able to obtain a secured credit card. By paying off this credit card on-time each month, a person can begin to rebuild their credit. Credit cards with small limits, such as $1,000, are a relatively small risk when compared to larger loans, such as a home loan. Therefore, financial institutions may be more willing to provide someone who has completed the bankruptcy process with a secured credit card, rather than a larger loan such as a mortgage. In addition, credit card companies will report payments the cardholder makes to credit bureaus. This too can help a person increase their credit score.

Is debt settlement better than filing for Chapter 7 bankruptcy?

Sometimes, if a person in Texas is facing overwhelming debt, they may be tempted by a debt settlement offer that claims it will protect the debtor from bankruptcy. However, sometimes these offers are too good to be true. Are there circumstances in which filing for bankruptcy is preferable to a debt settlement offer?

First of all, it used to be the case that a debt settlement company would resell a person's debts even though they claimed the debts were settled. While this is less likely these days, particularly in cases in which the debtor is working to settle the debt with the lender itself instead of a company that purchases debts from lenders, it can still happen. Also, debtors still need to make payments to the debt settlement company, and the amount that is forgiven must be reported as income to the debtor.

Filing for bankruptcy in Texas can stop creditor harassment

Sometimes a person in Texas has no choice but to go into debt. Company-wide layoffs, a serious illness or an unexpected and costly home repair or car repair could all put a person in a difficult financial situation. Sometimes a person is forced to make tough choices. Should they pay the car bill this month if it means they wouldn't be able to buy groceries? Should they use a credit card to pay the electric bill? These are difficult decisions to make and, unfortunately, the debts associated with having to make such choices can spiral down to the point where not only can a person not catch up on their debts, but they can't even afford their basic living expenses.

The stress of having so much debt is ratcheted up once the calls from debt collectors start rolling in. Debt collectors can be absolutely relentless. It may seem like they will use any means to collect on their debt. However, per law they cannot harass the debtor. If a person finds themselves the victim of creditor harassment they do have options to address the situation.

Knowing when to seek relief from the burdens of debt

Many individuals experience the strain of financial hardships at some point in their lives. Perhaps recent monetary struggles left you in a bind, you might have chosen to turn to credit cards to help you overcome your temporary dilemma.

Credit cards can appear exceedingly beneficial during times of struggle. However, with high interest rates and punishing late fees and consequences, if you fall behind, you could find yourself staring down an insurmountable amount of debt.

Toy retailer files for Chapter 11 ahead of the holiday season

Although the winter holidays are still a few months away, some people in Tyler, Texas may have already gotten a head-start on their holiday shopping. For those with children, finding the most popular toys of the season may already be on shoppers' radar. Therefore, they may be surprised to hear that the popular toy retailer Toys R Us has filed for Chapter 11 bankruptcy.

By filing for Chapter 11 bankruptcy, Toys R Us will be able to relieve itself of its debts stemming from a $6.6 billion acquisition. The company's debts total $4.9 billion. Toys R Us stores will remain operational throughout the bankruptcy process. The Chapter 11 bankruptcy filing will also give the company's toy vendors such as Hasbro and Mattel with information about its future plans as the holiday season approaches.

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