Chapter 11 | Law Office of Gordon MosleyFacing garnishment, lawsuits? Bankruptcy may be able to help.2022-02-21T19:51:25Z2022-02-21T19:51:25Z<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
During the day, you may have the ability to keep your financial worries somewhat at bay by concentrating on other tasks. However, when the time comes to get in bed for the night, those thoughts that stayed at the edge of your mind all day may come flooding forward. How will you make your next credit card payment? When will the next creditor call? What can you do about your garnished wages?
</span>
</p>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<p>
<span style="display: initial;">
These concerns affect numerous people who must contend with overwhelming debt. No matter what led to your debt, you do have options for effectively addressing those liabilities. In particular, bankruptcy may act as a significant step toward a fresh financial start. However, you may wonder whether taking this action really suits your circumstances.
</span>
</p>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<p>
<span style="font-weight: bold; display: initial;">
Has action been taken against you?
</span>
</p>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<p>
<span style="display: initial;">
When you face overwhelming debt, you may also face letters and calls from creditors every day. Over time, you may have become adept at avoiding these attempts at contact or requested a stop to such actions. However, more significant actions may have been taken against you with which bankruptcy may be able to help. Two actions that may make you consider this debt relief option more seriously include:
</span>
</p>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<ul>
<li>
<span style="font-weight: bold; display: initial;">
Wage garnishment:
</span>
<span style="display: initial;">
<span style="display: initial;">
If creditors are directly garnishing wages from your paychecks in attempts to pay your outstanding balances, you already face serious financial trouble. You may need every penny you earn to make ends meet as it is, and when you cannot hold on to your wages, bankruptcy may be able to help stop garnishments.
</span>
</span>
</li>
<li>
<span style="font-weight: bold; display: initial;">
Lawsuits:
</span>
<span style="display: initial;">
<span style="display: initial;">
When creditors feel that they cannot effectively get you to pay your balances on their own, they may sue you for payment. Lawsuits are serious matters that could cause you to face even more financial strife while also facing orders to pay your liabilities. Fortunately, bankruptcy could help stop judgments in such cases.
</span>
</span>
</li>
</ul>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<p>
<span style="display: initial;">
Because these actions can have serious outcomes, taking steps to stop them may help you in the long run.
</span>
</p>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<p>
<span style="font-weight: bold; display: initial;">
Can you attempt other debt relief methods?
</span>
</p>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<p>
<span style="display: initial;">
If you are not yet facing wage garnishments or lawsuits, you may wonder whether you could first attempt other actions before bankruptcy. Certainly, creditor negotiation and credit counseling could act as possible avenues to try. Of course, not all creditors feel willing to negotiate, and you may still need to address your full balances. Additionally, you may want to remain wary of services which claim they can reduce your debt or help you become debt free as many of these claims turn into scams that cost unsuspecting individuals more money.
</span>
</p>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
Though it can be frightening to consider such a major action, exploring your bankruptcy options further may help you get your financial affairs in order and bring back your restful sleep.
<br/>
</span>
</p>
</div>Seeking debt relief does not make you a bad person2022-02-21T19:51:24Z2022-02-21T19:51:24Z<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
No matter what you do, you just can’t seem to get your head above water financially. In the last little while you’ve experienced loss of income, or you’ve had unexpected emergency expenses that you had to put on credit cards, or you or a loved one may have suffered a serious medical event, costing your family a small fortune. Maybe it was a combination of these or other hardships. Now you need help, but feel you are a bad person for seeking debt relief.
</span>
</p>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<p>
<span style="display: initial;">
There is and always has been a certain stigma surrounding bankruptcy in the United States. The truth of the matter is, Texas residents who need financial help are not bad people and no one should make them feel bad for asking for help. It is their right to pursue bankruptcy if it is what will best serve their interests.
</span>
</p>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<p>
<span style="display: initial; font-weight: bold;">
Stigmas attached to bankruptcy
</span>
</p>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<p>
<span style="display: initial;">
There are three types of stigmas often associated with bankruptcy. These are:
</span>
</p>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<ul>
<li>
<span style="display: initial;">
Financial
</span>
</li>
<li>
<span style="display: initial;">
Emotional
</span>
</li>
<li>
<span style="display: initial;">
Social
</span>
</li>
</ul>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
Emotional and social stigmas are often combined. They refer to how you see yourself after pursing a bankruptcy filing and how you believe people view you. People are afraid to let others down or do not want others to know they are struggling. When drowning in debt, the only thing that should concern you is fixing the situation. It shouldn’t matter how you do it and it really is no concern of anybody else’s. You do what will best serve you.
</span>
</p>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<p>
<span style="display: initial;">
The financial stigma sounds bad, but it can be a good motivator. Will your credit score go down if you file for bankruptcy? Yes. Will it stay that way forever? Will you be financially doomed for the rest of your life for seeking relief? No. While credit recovery after bankruptcy can take time, it is possible to do if you take full advantage of the bankruptcy filing and are cautious in your future financial decisions.
</span>
</p>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<p>
<span style="font-weight: bold; display: initial;">
Don’t let the stigmas stop you
</span>
</p>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
At the end of the day, you have to do what is best for you and your family. That may involve pursuing a bankruptcy filing and that is okay — it does not make you a bad person. Don’t let the stigmas stop you from seeking the relief you need. If you are not sure if it is the best course of action, you can seek legal counsel on the matter and then go from there.
</span>
</p>
</div>Bankruptcy may be the missing item in your financial toolbox2022-02-21T19:51:22Z2022-02-21T19:51:22Z<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
Living in Texas definitely has its pros and cons, same as any other state. You’ve likely heard humorous remarks about everything being “big” here. The trouble is, not everything that’s big is good; for instance, big health problems, marriage problems or financial problems are anything but good. When big financial problems arise, it can have immediate and long-lasting negative effects on your life. Perhaps none of this is news to you because you are currently trying to overcome a particular financial crisis.
</span>
</p>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
Maybe things have gotten out of hand due to losing your job or facing an unexpected medical emergency. Then again, perhaps you’re still employed and in good health, but you got into a bad habit of spending more than you earn. Regardless of the exact reasons for your money trouble, if a lender is threatening to take ownership of your home, you’ll likely want to access all options available to halt the process.
</span>
</p>
<p style="line-height: 1.5;">
<br/>
</p>
<p>
<span style="display: initial; font-weight: bold;">
Valuable tools that may help you avoid foreclosure
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
It’s worrisome enough to face several unpaid bills for substantial amounts than to be at risk for losing your home. If you have a spouse and children, the stress of it all may be a bit overwhelming. If you take a deep breath and do a bit of research, you may be able to access support that can help you get things back on track. In the meantime, the following information might be helpful as well:
</span>
</p>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<ul>
<li>
<span style="display: initial;">
A lender can’t simply take over your home if you are unable to make a mortgage payment. There are foreclosure laws about such matters, and you have mortgage rights. Knowing your rights and how to protect them can help you avoid major problems.
</span>
</li>
<li>
<span style="display: initial;">
Foreclosure generally means a lot more work for a lender. In short, your lender may be willing to come up with an alternate payment plan so you get to keep your home and the lender does not have to take on the burden of foreclosure.
</span>
</li>
<li>
<span style="display: initial;">
There are certain debt relief options that halt the foreclosure process in its tracks, such as bankruptcy. There also happen to be various types of bankruptcy, each with its own eligibility requirements. To find out if a form of bankruptcy would help you solve your financial crisis (and keep your house), you may wish to speak with someone who is well-versed in bankruptcy law.
</span>
</li>
<li>
<span style="display: initial;">
There may also be immediate, practical, tangible things you can do to help resolve your money problems, such as cutting back on spending, selling assets or obtaining additional gainful employment to bring in more cash.
</span>
</li>
</ul>
<p style="line-height: 1.5;">
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
If you know someone who has successfully avoided foreclosure, he or she may have some good ideas to help you rise above your current financial problems. Many other people who have gone through similar experiences in Texas have relied on experienced bankruptcy attorneys for support.
</span>
</p>
</div>Knowing when to seek relief from the burdens of debt2022-02-21T19:51:21Z2022-02-21T19:51:21Z<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
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.
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
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.
</span>
</p>
<p style="line-height: 1.5;">
<br/>
</p>
<p>
<span style="display: initial; font-weight: bold;">
Indications that your debts are an issue
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
Substantial debt loads can place you under a significant financial strain, and the constant phone calls and collection letters do little to ease your stress. With credit cards, these issues can creep up over time, and you may wish to know the warning signs that debt is a problem so you can avoid a potential disaster, and some areas of concern may include the following:
</span>
</p>
<p>
<br/>
</p>
<ul>
<li>
<span style="display: initial; font-weight: bold;">
Rising balances:
</span>
<span style="display: initial;">
<span style="display: initial;">
If the balances on your accounts are continually rising, chances are, you may be experiencing financial struggles. These issues could only grow worse as time goes by, and seeking relief may be advisable.
</span>
</span>
</li>
<li>
<span style="display: initial; font-weight: bold;">
Maxed-out limits:
</span>
<span style="display: initial;">
<span style="display: initial;">
Having a maxed-out limit on one or more credit cards is another indicator of financial hardships. While you may be able to keep up with minimum payments at first, high interest rates can make your balance soar, and the snowball effect can be challenging to overcome.
</span>
</span>
</li>
<li>
<span style="display: initial; font-weight: bold;">
<span style="display: initial; font-weight: bold;">
Trouble keeping up:
</span>
</span>
<span style="display: initial;">
As balances and interest rates rise, you may have trouble making even the minimum payment on accounts, which can be exceedingly troublesome and could indicate a need to seek financial relief.
</span>
</li>
<li>
<span style="display: initial; font-weight: bold;">
Credit-related rejection:
</span>
<span style="display: initial;">
<span style="display: initial;">
Receiving a letter of decline when applying for new lines of credit could be worrisome and may be a sign that your credit score is suffering.
</span>
</span>
</li>
</ul>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
You may also receive letters from companies offering promotional cards for those with damaged credit, which is another sign that your credit score may be suffering. Regardless of the issues you face, the burdens of debt may be causing you to suffer, and seeking advice on the options for debt relief could be in your best interests.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial; font-weight: bold;">
Seeking guidance
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
Although dealing with debt-related issues can be stressful and daunting, avoiding them will do little to make them go away. Perhaps you wish to pursue relief, but with numerous options available, each offering its own potential advantages and disadvantages, you might be uncertain how to move forward. You could speak with someone with knowledge in federal and Texas state bankruptcy laws for guidance, which might help you gain an understanding of each option and prepare you to pursue relief from the burdens of debt through the necessary outlets.
</span>
</p>
</div>Chapter 7 Bankruptcy and the means test2022-02-21T19:51:20Z2022-02-21T19:51:20Z<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
If you are dealing with an overwhelming amount of debt, you might wish to know more about the available options for relief. While there may be numerous outlets for debt relief, the correct path on which to pursue a healthier financial future could depend on your current circumstances.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
Perhaps you are continually unable to make monthly payments and have fallen well behind as a result. You might be in search of a more permanent solution and wish to explore the possibility of filing for Chapter 7 bankruptcy, but you might need to find out if you are eligible before proceeding.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial; font-weight: bold;">
Determining eligibility for bankruptcy
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
There are numerous factors that may influence the process, such as income and necessary monthly expenses. Before you can file for Chapter 7 bankruptcy, you will have to meet certain requirements via the means test. This part of bankruptcy includes the following:
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial; font-weight: bold;">
First step:
</span>
<span style="display: initial;">
<span style="display: initial;">
In this step, you will have to compare your income over the previous six months with the state median income, and if yours is less than or equal to the state average, you could be eligible to file for Chapter 7 bankruptcy.
</span>
</span>
</p>
<p>
<span style="display: initial; font-weight: bold;">
Second step:
</span>
<span style="display: initial;">
<span style="display: initial;">
Should your income be higher than the state average, you might still qualify if your remaining income after allowed expenses is insufficient to repay at least a portion of your debts.
</span>
</span>
</p>
<p>
<span style="display: initial; font-weight: bold;">
Change in circumstances:
</span>
<span style="display: initial;">
<span style="display: initial;">
Perhaps you recently lost your job or had a medical emergency. Even if you fail the means test, you may still be eligible if you can show that a change in circumstances has reduced your income.
</span>
</span>
</p>
<p>
<span style="display: initial; font-weight: bold;">
Other options:
</span>
<span style="display: initial;">
<span style="display: initial;">
If you are still unable to pass the means test, you could consider filing for Chapter 13 bankruptcy. However, if you are unable to repay even a small portion of debts, you may also consider waiting until you can take the means test again.
</span>
</span>
</p>
<p>
<span style="display: initial;">
Under certain circumstances, a person might be eligible to skip the means test regardless of income, an example of which could include a disabled veteran who acquires debt while on active duty. Speaking with someone with extensive knowledge of federal and Texas state bankruptcy laws could help inform you of the available options and how to proceed.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial; font-weight: bold;">
Advice and assistance moving forward
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
Filing for bankruptcy is a major decision, and the process can be exceedingly complex. With the potential weight of the outcome of a bankruptcy and the cost of any mistakes, seeking guidance from someone with experience in handling such matters could be in your best interests. By obtaining advice before proceeding, you could gain insight into the available options and their potential outcomes, which may in turn assist you in choosing the best path with which to pursue financial freedom.
</span>
</p>
</div>Financial stress and divorce: One often leads to the other2022-02-21T19:51:18Z2022-02-21T19:51:18Z<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
If Texas residents who end their marriages in court were to name the key factors that led to their break-ups, answers would undoubtedly vary. However, there does seem to be a common denominator in many divorces. Lots of people say their martial declines began right around the same times they suffered financial problems, as if the two things went hand-in-hand. Others say their financial struggles arose during divorce proceedings or after the court issued decrees.
</span>
</p>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
In either of these cases, facing serious financial debt before, during or after a marital breakdown can make stress levels soar. Such situations also prompt a lot of decision-making. If you’re in a similar situation, the following ideas may help bring clarity and provide information that gives you access to financial and family law support as well.
</span>
</p>
<p style="line-height: 1.5;">
<br/>
</p>
<p>
<span style="display: initial; font-weight: bold;">
A few facts regarding bankruptcy and divorce
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
No two marriages (or divorces) are exactly the same. Job loss, medical emergencies and other types of extenuating circumstances can place undue hardship on families that seems nearly impossible to overcome. One of the following situations may apply to your current state-in-life:
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
During divorce proceedings, large numbers of people face unemployment or exorbitant medical expenses that land them in worse financial shape after divorce than prior to it.
</span>
</p>
<p>
<span style="display: initial;">
Post divorce expenses also lead to financial disaster for many people. Having to pay child support or spousal support on a single income proves far too difficult in many situations.
</span>
</p>
<p>
<span style="display: initial;">
Some people fail to realize that marital debts are shared in community property states; just marital property is split 50/50.
</span>
</p>
<p>
<span style="display: initial;">
Once your divorce is final, you can’t file joint bankruptcy with your former spouse; however, this might be an option before divorce. If your spouse is the only who files for debt relief, you may still be held accountable for marital debt.
</span>
</p>
<p>
<span style="display: initial;">
The last fact on the list may lead you to decide to delay filing for divorce while you address financial problems first. Whether to file for bankruptcy jointly then file for divorce, or wait until your divorce is finalized then file for individual bankruptcy is an intensely personal decision that typically has both immediate and long-term consequences.
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
An experienced bankruptcy attorney can address the financial aspects of your situation. Exploring any and all debt relief options that may be available to you may help you resolve your current financial problems and create a plan for restored fiscal stability as you move forward toward a new lifestyle.
</span>
</p>
</div>Can filing for personal bankruptcy stop a vehicle repossession?2022-02-21T19:41:52Z2022-02-21T19:41:52Z<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
Having your own vehicle is an expense, but it is also a necessity for most people. You need to drive yourself to and from work every day and take your children to school and doctor’s appointments. Despite being a necessity for modern life, vehicles are prohibitively expensive for many adults.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
The majority of working- and middle-class families have to finance their vehicles. Taking on a long-term car loan can lead to manageable monthly payments, but it also means that by the time someone pays off the vehicle, it may need repairs or replacement.
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
If someone falls behind on their car loan payments, the lender could repossess the vehicle because it was collateral for the loan. Will filing for bankruptcy stop vehicle repossession?
</span>
</p>
</div>
<div style="transition: opacity 1s ease-in-out 0s;" data-rss-type="text">
<h3>
<span style="display: unset;">
Bankruptcy can help you protect your vehicle
</span>
<span style="display: initial;">
<br/>
</span>
</h3>
</div>
<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
If you are worried that your lender may soon try to repossess your vehicle, don’t wait until they already have. At that point, it will be much harder for you to protect your investment in the vehicle or regain possession of it.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
Re-reading your financing terms can help you confirm when your lender might initiate repossession. They won’t necessarily send you a warning notice like a mortgage lender would before foreclosing. Filing for bankruptcy leads to an automatic stay which will require that your creditors temporarily stop their collection efforts.
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
However, if you have fallen behind on your car loan, the lender can likely request a hearing with the courts and move forward with the repossession. You will have the opportunity to decide what to do with your car once you have temporarily protected yourself with an automatic stay.
</span>
</p>
</div>
<div style="transition: none 0s ease 0s; text-align: left; display: block;" data-rss-type="text">
<h3 style="line-height: 1.3em;">
<span style="display: unset;">
What happens to a vehicle loan in a bankruptcy?
</span>
<span style="display: initial;">
<br/>
</span>
</h3>
</div>
<div style="" data-rss-type="text">
<p>
<span style="display: initial;">
You can potentially reaffirm the loan. Your lender may be open to negotiating with you so that continuing to pay on the vehicle is a more realistic option. In some cases, you may need to redeem the vehicle by paying the full balance of what you owe. Other times, people may decide to release the vehicle to the lender to get rid of their car loan obligation altogether.
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
Although bankruptcy does not absolutely protect you from the loss of your vehicle, it can help you regain control over your credit and give you time to make the right choices about your debts and assets. Learning more about personal bankruptcy can help you avoid major setbacks like the repossession of your vehicle.
</span>
</p>
</div>Is bullying by a collections agency harassment?2022-02-21T19:39:06Z2022-02-21T19:39:06Z<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
Living in a situation where you’re behind on bills, you are aware that you may have those debts sent to a collections agency. The agents working for those agencies then call, send letters and do their best to contact you to collect a debt.
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
You might have gotten used to getting repeated calls or mailers from the collections agency, but what you should never get used to is creditor harassment. Debt collection agencies are bound by law not to intimidate, abuse, bully, browbeat or coerce consumers into paying off their debts. For example, it’s unlawful for debt collectors to curse at you or to make repeated calls that are intended to annoy you.
</span>
</p>
</div>
<div style="transition: opacity 1s ease-in-out 0s;" data-rss-type="text">
<h3>
<span style="display: initial;">
The Fair Debt Collection Practices Act
<br/>
</span>
</h3>
</div>
<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
The federal government has a law in place to put restrictions on what debt collectors can say or how they can act when they’re attempting to collect a debt. The Fair Debt Collection Practices Act covers the collection of many types of debts, such as:
</span>
</p>
<p>
<br/>
</p>
<ul>
<li>
<span style="display: initial;">
Credit card debts
</span>
</li>
<li>
<span style="display: initial;">
Mortgages
</span>
</li>
<li>
<span style="display: initial;">
Medical debts
</span>
</li>
<li>
<span style="display: initial;">
Personal debts
</span>
</li>
</ul>
<p>
<span style="display: initial;">
<span>
</span>
</span>
</p>
<p>
<span style="display: initial;">
There are rules set into place by this act. For example, if the debt collector knows that you’re represented by an attorney, then they usually have to stop contacting you directly. Debt collectors are not allowed to harass you or others over the phone or through other kinds of contact. Additionally, if you are not allowed to receive communications at work, then the debt collector should not call you or contact you there once they’ve been informed.
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
On top of all this, debt collectors aren’t allowed to contact you at unusual times or in unusual places. They are usually bound to calling no sooner than 8 a.m. or after 9 p.m.
</span>
</p>
</div>
<div style="transition: opacity 1s ease-in-out 0s;" data-rss-type="text">
<h3>
<span style="display: initial;">
What should you do if you’re being bullied by an agent?
<br/>
</span>
</h3>
</div>
<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
At the beginning of most calls, the agent will tell you that the call is being recorded. If they did not, the call may not have been, which makes it harder to prove that you were harassed. What you can do is take the agent’s name and information, write down the time they called and what they said, and ask to speak with their manager or supervisor. You should also look into your legal options since bullying and harassment is a violation of federal law.
<br/>
</span>
</p>
</div>What are the advantages of filing Chapter 13 bankruptcy?2022-02-21T19:35:18Z2022-02-21T19:35:18Z<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
Chapter 13 bankruptcy allows people who do not qualify for Chapter 7 bankruptcy (or who would prefer to repay their debts over time) to set up a three-to-five-year plan for the repayment of their debts. Chapter 13 bankruptcy has advantages that other forms of bankruptcy may not, such as making it easier to afford your monthly debt payments and helping you keep all of your assets.
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
Chapter 13 bankruptcy is known as a wage earner’s plan and is designed to help individuals pay back part or all of their debt over the course of three to five years. If the debtor earns a monthly income that is less than the current state median, the plan will be only for three years. If they earn more, then it will be for five in most cases.
</span>
</p>
</div>
<div style="transition: opacity 1s ease-in-out 0s;" data-rss-type="text">
<h3>
<span style="display: initial;">
What are the benefits of Chapter 13 vs. Chapter 7 bankruptcy?
<br/>
</span>
</h3>
</div>
<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
Chapter 13 bankruptcy has several advantages to keep in mind. For example, it gives people the opportunity to prevent or stop foreclosure, so that they can keep their homes. With Chapter 13 bankruptcy, it’s possible to cure delinquencies over time, so that individuals may make up their missed payments.
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
Chapter 13 bankruptcy has the potential to prevent cosigner liability in some cases. Since it works like a consolidation loan, creditors and collections agents will not be in contact with you during a Chapter 13 bankruptcy case once it’s in process. Instead, they will contact a trustee who handles the payments as directed by the court.
</span>
</p>
</div>
<div style="transition: none 0s ease 0s; text-align: left; display: block;" data-rss-type="text">
<h3>
<span style="display: initial;">
Chapter 13 bankruptcy eligibility and discharge
<br/>
</span>
</h3>
</div>
<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<a href="https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-13-bankruptcy-basics#:~:text=A%20chapter%2013%20bankruptcy%20is%20also%20called%20a,installments%20to%20creditors%20over%20three%20to%20five%20years." target="_blank" style="text-decoration: none; display: initial; color: rgb(0, 0, 0);">
Chapter 13 bankruptcy is available to individuals who have unsecured debts under $394,725 or secured debts under $1,184,200. If you can’t qualify for Chapter 7 bankruptcy due to your income, then you may want to consider a Chapter 13 bankruptcy instead. This will give you an option to qualify for bankruptcy protection despite earning a higher wage.
</a>
</p>
<p>
<span style="text-decoration: none; display: initial; color: rgb(0, 0, 0);">
<br/>
</span>
</p>
<p>
<a href="https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-13-bankruptcy-basics#:~:text=A%20chapter%2013%20bankruptcy%20is%20also%20called%20a,installments%20to%20creditors%20over%20three%20to%20five%20years." target="_blank" style="text-decoration: none; display: initial; color: rgb(0, 0, 0);">
Once you complete the bankruptcy, all three or five years of payments, then any remaining qualifying debts may be discharged by the court. This may help you get the fresh start that you deserve in the shortest possible amount of time
</a>
<span style="text-decoration: none; display: initial; color: rgb(0, 0, 0);">
.
</span>
</p>
</div>The top cause of bankruptcy has nothing to do with personal fault2022-02-21T19:28:19Z2022-02-21T19:28:19Z<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
A surprising number of people see bankruptcy as a sign of personal failure. There is a lot of assumptions about what leads people to file for bankruptcy. There are certainly people who file because they spent too much on their credit cards or develop a gambling addiction, but those people are actually in the minority of filers.
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
Modern bankruptcy statistics show that one issue dominates as the primary reason that people eventually file for bankruptcy. Roughly two-thirds of those in need of bankruptcy reported medical issues as the triggering event that led to their bankruptcy.
</span>
</p>
</div>
<div style="transition: opacity 1s ease-in-out 0s;" data-rss-type="text">
<h3>
<span style="display: initial;">
Modern insurance leaves a lot of gaps
<br/>
</span>
</h3>
</div>
<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
Those with health insurance through their employer usually assume they will have the coverage they need if they get hurt or become very sick. Given how rarely people need catastrophic coverage, it’s understandable that so many people don’t understand how vulnerable they are.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
Many insurance policies have deductibles that are thousands of dollars. You will have to pay all of that out of pocket before the insurance company starts covering your care. Even once they do start paying, you will likely also have coinsurance, which makes you responsible for a percentage of the total cost, sometimes as much as 30% or more. There may also be co-pays.
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
Some insurance policies also have a maximum benefit, meaning that after you require a certain amount of care, they won’t pay for anything else. Additionally, cutting-edge treatments for cancer or injuries may not have full coverage. One car crash that causes a spinal injury, one fall that leads to a brain injury or one cancer diagnosis could be enough to leave someone with hundreds of thousands of dollars in medical debt.
</span>
</p>
</div>
<div style="transition: none 0s ease 0s; text-align: left; display: block;" data-rss-type="text">
<h3>
<span style="display: initial;">
Medical creditors can be downright aggressive
<br/>
</span>
</h3>
</div>
<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
Hospitals and medical practices may have to provide care to save your life, but they don’t have to think about how the stress of their aggressive debt collection practices might impact your recovery. They could sue you, place a lien against your home or even try to garnish your wages when you get back to work.
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
Some people beat cancer, only to wind up with six figures worth of debt afterward. Others get hurt in a car crash and have a lifetime of both medical expenses and reduced earning potential. Those dealing with aggressive medical collection tactics or just overwhelming levels of medical debt may find that personal bankruptcy offers them the fresh start they need to enjoy their life after they recover from their medical issues.
</span>
</p>
</div>How long does Chapter 7 bankruptcy stay on your credit report?2022-02-21T19:28:17Z2022-02-21T19:28:17Z<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
When you declare bankruptcy, that filing does go on your credit report. It can impact your ability to get a loan in the future. Even as you work to rebuild your credit score — which is not as difficult as many people assume — that filing will keep the score lower than it would be otherwise.
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
For this reason, one of the first things that a lot of people ask is simply how long that filing will remain on the report. How long do they have to wait until it gets removed and they can really feel like the whole situation is behind them?
</span>
</p>
</div>
<div style="transition: opacity 1s ease-in-out 0s;" data-rss-type="text">
<h3>
<span style="display: initial;">
The date you file is when it begins
<br/>
</span>
</h3>
</div>
<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
The date on which you file for bankruptcy is the day on which the countdown starts. This can be important, as it may take months to complete the process, but your filing will not stay on your record for an extra amount of time if the filing itself is drawn out for some reason.
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
All that said, the timeframe for a Chapter 7 filing is 10 years. After a decade, it comes off of your report and no one but you knows what happened in the past.
</span>
</p>
</div>
<div style="transition: none 0s ease 0s; text-align: left; display: block;" data-rss-type="text">
<h3>
<span style="display: initial;">
What should you do in the meantime?
<br/>
</span>
</h3>
</div>
<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
So, do you just have to wait ten years to fix your credit score? Certainly not! There is a lot you can do, such as:
</span>
</p>
<p>
<br/>
</p>
<ul>
<li>
<span style="display: initial;">
Maintaining a job
</span>
</li>
<li>
<span style="display: initial;">
Making all payments on time
</span>
</li>
<li>
<span style="display: initial;">
Using secured credit cards to prove you can handle debt
</span>
</li>
<li>
<span style="display: initial;">
Only spending what you can afford
</span>
</li>
</ul>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
Building your score back up is a process, and waiting for the filing to come off of your record is just one part of that process. You may not be able to speed it up, but you can definitely increase your score — sometimes by a drastic amount — in the meantime.
<span>
</span>
</span>
</p>
</div>
<div style="" data-rss-type="text">
<h3>
<span style="display: initial;">
Looking into your legal options
<br/>
</span>
</h3>
</div>
<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p style="line-height: 1.5;">
<span style="display: initial;">
Debt problems typically come from issues outside of your control. Don’t blame yourself. Don’t worry about the future. Just look into all of the legal options that you have and take what steps you can to get things back on track.
</span>
</p>
</div>Does bankruptcy stop wage garnishment?2022-02-21T19:22:18Z2022-02-21T19:22:18Z<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
If you have fallen behind on your bills and are struggling to make ends meet, you’re not alone. In 2018, there were 461,897 Chapter 7 bankruptcy filings and 288,272 Chapter 13 filings. Plenty of people find themselves in positions where they need to make a quick decision to put a stop to creditor harassment and to prevent the garnishment of their wages. That’s where bankruptcy can come in to help.
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
Bankruptcy can stop your wages from being garnished, which is helpful if you’re looking to get a fresh start but still need to maintain your home or necessities. As soon as your bankruptcy is filed, the garnishments should stop. Here’s how it works.
</span>
</p>
</div>
<div style="transition: opacity 1s ease-in-out 0s;" data-rss-type="text">
<h3>
<span style="display: unset;">
Understanding wage garnishment
</span>
</h3>
</div>
<div style="transition: none 0s ease 0s; text-align: left; display: block;" data-rss-type="text">
<p>
<span style="display: initial;">
Wage garnishment is when a court order has been issued to your employer that tells them to send a specific amount of money to a creditor each time you’re paid. They take this amount out of your paycheck and use it to repay what you owe.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
Many kinds of debts can be paid through wage garnishments, such as:
</span>
</p>
<p>
<br/>
</p>
<ul>
<li>
<span style="display: initial;">
Student loans
</span>
</li>
<li>
<span style="display: initial;">
Taxes
</span>
</li>
<li>
<span style="display: initial;">
Personal loans
</span>
</li>
<li>
<span style="display: initial;">
Child support
</span>
</li>
<li>
<span style="display: initial;">
Alimony
</span>
</li>
<li>
<span style="display: initial;">
Credit card debts
</span>
</li>
<li>
<span style="display: initial;">
Medical bills
</span>
</li>
</ul>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
Creditors usually have to sue you before a wage garnishment is ordered. So, you should have received a notice of a hearing prior to the garnishment appearing on your wages. Sometimes a hearing isn’t needed, though, such as if the debt is for student loans, child support or your taxes.
</span>
</p>
</div>
<div style="transition: opacity 1s ease-in-out 0s;" data-rss-type="text">
<h3>
<span style="display: unset;">
How can you stop wage garnishment with bankruptcy?
</span>
<span style="display: initial;">
<br/>
</span>
</h3>
</div>
<div style="transition: none 0s ease 0s; text-align: left; display: block;" data-rss-type="text">
<p>
<span style="display: initial;">
When you file for bankruptcy, most kinds of wage garnishment stop. Additionally, new creditors may not be able to seek garnishment orders against you. The reason for this is because of the automatic stay. An automatic stay prevents collections agencies, some government entities and creditors from trying to pursue debts while the bankruptcy is in progress. This stay starts the moment the bankruptcy is filed.
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
Your attorney will reach out to each of the creditors to make them aware of the stay and to let them know that they need to stop garnishing your wages immediately. If they don’t stop, then they could face charges for contempt.
</span>
</p>
</div>Congress could make bankruptcy more attractive for many2022-02-21T19:20:06Z2022-02-21T19:20:06Z<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p style="line-height: 1.5;">
<span style="display: initial;">
Currently, lawmakers are evaluating proposed legislation for a potential vote that will allow for the establishment of a Chapter 10 bankruptcy filing classifying student loan debt as unsecured loans, just like credit cards. This means that many Texas residents who meet the criteria for filing can discharge the debt. This legislation is an alternative to the direct loan cancellation that many want, but it will still encounter some challenges along the way.
</span>
</p>
</div>
<div style="transition: opacity 1s ease-in-out 0s;" data-rss-type="text">
<h3>
<span style="display: unset;">
Potential problems for those who are financially secure
</span>
<span style="display: initial;">
<br/>
</span>
</h3>
</div>
<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
The proposal to cancel a certain amount of college loan debt across the board will be a more popular alternative for many who are other financially secure even though they have student loan debt. The bill, if passed, will require someone to file for Chapter 10 bankruptcy, and as it sits, it will also carry the same restrictions as a Chapter 7 filing for the proceeding seven years. Not to mention the negative impact a bankruptcy filing exacts on a filer’s credit rating.
<br/>
</span>
</p>
</div>
<div style="transition: none 0s ease 0s; text-align: left; display: block;" data-rss-type="text">
<h3>
<span style="display: unset;">
Potential problems for Congress
</span>
<span style="display: initial;">
<br/>
</span>
</h3>
</div>
<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
Not only is the proposed legislation flawed, but there also are many individuals in Congress who think this is an irresponsible method of addressing the debt problem of former college students who are locked into long-term payment arrangements with the Department of Education. Private lenders actually hold much of the debt, and any decision Congress makes could well only apply to public loans through the various schools across the nation. Many colleges are private institutions that have been incorporated into the system.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
Bankruptcy attorneys in Texas already see the complications with the new strategy that will be effective for some but not so much for others. The challenge for Congress will be finding the middle ground, where all debt-holding former students can benefit, to some degree, from the new student loan policy.
<br/>
</span>
</p>
</div>Should you negotiate with creditors or file for bankruptcy?2022-02-21T19:17:49Z2022-02-21T19:17:49Z<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
The decision to file for bankruptcy is not an easy one. If you’re having difficulty deciding, that’s a good sign. It means that you recognize the seriousness of the situation and are taking time to fully weigh your options and the consequences of any option you choose.
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
That being said, you shouldn’t talk yourself out of bankruptcy if it is the right decision for your financial situation. To make the most informed decision, it is best to discuss your case with an experienced bankruptcy attorney. The conversation will likely start with an assessment of how much debt you have, what kind of debt it is and whether you could reasonably repay it.
</span>
</p>
</div>
<div style="transition: opacity 1s ease-in-out 0s;" data-rss-type="text">
<h3>
<span style="display: unset;">
How does your debt compare to the national average?
</span>
<span style="display: initial;">
<br/>
</span>
</h3>
</div>
<div data-rss-type="text">
<p>
<span style="display: initial;">
<span style="display: initial;">
Bloomberg recently published a guide to bankruptcy in America filled with interesting statistics.
</span>
</span>
<a href="https://www.bloomberg.com/news/storythreads/2020-11-11/the-ultimate-guide-to-personal-bankruptcy" style="display: initial; color: rgb(0, 0, 0);">
According to the article
</a>
<span style="display: initial;">
, the average American under 65 who files for bankruptcy has accrued nearly $92,000 in debt. If this amount of debt were in the form of a 20-year mortgage with reasonable monthly payments, it might not seem like an overwhelming amount. But if much of this is credit card debt with high interest rates, the chances of paying it off are very slim.
</span>
</p>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
Your income and net worth will also (obviously) factor into this decision. Someone with a household income of $200,000 annually has a much better chance of paying off $92,000 in debt than someone making just over $60,000 per year, which is the current median income in Texas.
</span>
</p>
</div>
<div style="transition: opacity 1s ease-in-out 0s;" data-rss-type="text">
<h3>
<span style="display: unset;">
Is there a downside to trying to repay first and filing later on, if needed?
</span>
<span style="display: initial;">
<br/>
</span>
</h3>
</div>
<div data-rss-type="text">
<p>
<span style="display: initial;">
It may be tempting to try and pay off your debt by negotiating with creditors, knowing that bankruptcy is always an option down the road. In some circumstances, this might be a fine choice to make, but it should be a decision based on an accurate assessment of your debt and your chances of successfully repaying it.
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
If you try to avoid bankruptcy when there is no reasonable alternative, the best-case scenario is that you prolong your stress, fear and worry before taking advantage of a legitimate legal tool meant to help you get out of debt. The more likely consequence, however, is that you will end up unnecessarily depleting important assets that you might have been able to keep. Too many people end up cashing out retirement savings, for instance, only to realize the money wasn’t enough to help them avoid bankruptcy.
</span>
</p>
</div>
<div style="transition: opacity 1s ease-in-out 0s;" data-rss-type="text">
<h3 style="line-height: 1.3em;">
<span style="display: unset;">
Talk to a professional before making up your mind
</span>
<span style="display: initial;">
<br/>
</span>
</h3>
</div>
<div data-rss-type="text">
<p>
<span style="display: initial;">
Filing for bankruptcy isn’t an easy choice to make, but it is sometimes the best choice. Thankfully, you don’t need to make this decision alone. A reputable bankruptcy attorney would be glad to discuss your options with you after taking a closer look at your finances. He or she will not recommend bankruptcy unless it is truly a good option for you.
<br/>
</span>
</p>
</div>The link between medical debt and bankruptcy2022-02-21T19:13:43Z2022-02-21T19:13:43Z<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
It seems that more Americans are facing complex medical procedures and rising healthcare costs than ever before. With the increasing costs of medical treatment and the possibility of income shortfalls from divorce, layoffs or housing emergencies, more and more families in the United States face financial peril at every turn.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
In a world where there seems to be less and less financial margin for error, healthcare costs tend to be one of the single biggest debts Americans face. While the statistics are often inconclusive, there is no doubt that many individuals who file for bankruptcy cite medical debt as a contributing factor in their decision.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
While there is no such thing as a “medical bankruptcy” in the Bankruptcy Code, individuals can seek debt relief from either Chapter 7 or Chapter 13.
</span>
</p>
<p>
<br/>
</p>
<ul>
<li>
<span style="display: initial;">
Chapter 7 is generally considered “debt elimination” bankruptcy as the goal is for debtors to get their unsecured debt discharged at the end of the process. Unsecured debt can include medical debt, credit card debt and any personal loans. For secured debt including a car loan or a home mortgage, you will need to continue making payments to protect those assets.
</span>
</li>
<li>
<span style="display: initial;">
Chapter 13 is generally considered “debt reorganization and repayment” bankruptcy. The repayment plan lasts from three to five years based on your income and typically entails you to pay a portion of your overall debt but not the full amount. If the repayment period is successfully completed, the remaining unsecured debt, including medical debt, is eliminated.
</span>
</li>
</ul>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
If you are facing significant medical debt, it is wise to carefully consider your options at the earliest time. Letting debt mount can only complicate your situation and make things more challenging for you in the future. As every situation is different, it is wise to discuss your case in detail with a skilled bankruptcy firm.
<br/>
</span>
</p>
</div>Debt, emotional health and bankruptcy2022-02-21T19:12:18Z2022-02-21T19:12:18Z<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
Our mental and physical health are tightly linked. Few things demonstrate this as well as financial stress – one of the most common sources of anxiety. According to one health insurer, nearly three out of every four Americans say they occasionally stress about money. Meanwhile, 22% say they feel “extreme” stress due to finances.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
This constant tension has consequences. For example, this type of stress can impact your nervous system, which may lead to poor, inconsistent sleep. Research has linked financial stress to heart disease, diabetes and stroke. And Americans say they may eat unhealthy foods or smoke as a way to help cope.
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
Bankruptcy offers a path to relief from this stress. But this prospect comes with its own set of challenging mental hurdles.
</span>
</p>
</div>
<div style="transition: opacity 1s ease-in-out 0s;" data-rss-type="text">
<h3>
<span style="display: unset;">
Guilt, failure and shame
</span>
<span style="display: initial;">
<br/>
</span>
</h3>
</div>
<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
There is a stigma associated with bankruptcy, one that makes feelings of guilt and shame swirl in many struggling individuals. This is because many people tie their bank accounts to their self-worth. If you aren’t making money, the thinking is, then you’re failing.
</span>
</p>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<p>
<span style="display: initial;">
That’s simply not true, U.S. News and World Report explains. Many individuals are affected by things over which they have no control. How could you possibly plan for events such as a once-in-a-century global health and economic crisis, an expensive hospital stay and procedure, or the abrupt end to a long-term relationship?
</span>
</p>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
These are all common reasons for debt problems and bankruptcy. Being subject to these events does not make anyone a bad person or a poor financial planner. Instead, it means circumstances outside of your control came crashing down on you like a wave.
</span>
</p>
</div>
<div style="transition: none 0s ease 0s; text-align: left; display: block;" data-rss-type="text">
<h3>
<span style="display: unset;">
Finding peace
</span>
<span style="display: initial;">
<br/>
</span>
</h3>
</div>
<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
Anyone can overcome this fear. All it takes is a few key steps:
</span>
</p>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<ul>
<li>
<span style="display: initial;">
Disconnect your self-esteem from your finances
</span>
</li>
<li>
<span style="display: initial;">
Identify the factors that were out of your control – and don’t let them bring you down
</span>
</li>
<li>
<span style="display: initial;">
Discuss your worries with others, to help put things in perspective
</span>
</li>
<li>
<span style="display: initial;">
Take time to ask questions and understand the bankruptcy process
</span>
</li>
</ul>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
Bankruptcy is not an admission of wrongdoing. It’s an option for people who were pushed into a difficult spot. It gives you the space needed to get out from under that towering burden and set yourself up for a fresh start.
</span>
</p>
</div>Seeking advice on how to weather the storms of financial strain2022-02-21T19:09:24Z2022-02-21T19:09:24Z<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
While dealing with the trials of financial strain can be a stressful and daunting process, taking on some forms of debt may simply be a part of life. Unfortunately, sometimes it could take little more than a minor emergency to turn a manageable level of monetary obligations into a potential disaster.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
As you likely consider it vital to take every possible measure to safeguard your financial future, you could be wondering what you can do to help ward off such hardships. Understanding how certain financial decisions could affect your situation could prove vital to keeping debt at bay.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial; font-weight: bold;">
Keeping debt at bay
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
It can be difficult to predict how and when a monetary disaster could strike as debt can come in a variety of forms and fashions. Some tips that may help you prepare to weather the storms of financial strain may include:
</span>
</p>
<p>
<span style="display: initial;">
<br/>
</span>
</p>
<ul>
<li>
<span style="display: initial; font-weight: bold;">
Build a safety net:
</span>
<span style="display: initial;">
<span style="display: initial;">
As emergencies can happen at any given moment, building up a financial safety net could prove essential to keeping a flat tire from deflating your finances.
</span>
</span>
</li>
<li>
<span style="display: initial; font-weight: bold;">
Form a budget:
</span>
<span style="display: initial;">
<span style="display: initial;">
Forming a budget could play an integral role in helping you better prepare for whatever comes your way, but you must also be vigilant in sticking to your budget.
</span>
</span>
</li>
<li>
<span style="display: initial; font-weight: bold;">
Keep balances in check:
</span>
<span style="display: initial;">
<span style="display: initial;">
With high interest rates on many credit card accounts, keeping your balances at a minimum could be vital in helping you keep monthly obligations at a manageable level.
</span>
</span>
</li>
<li>
<span style="display: initial; font-weight: bold;">
Know the terms:
</span>
<span style="display: initial;">
<span style="display: initial;">
Before signing up for new credit accounts, being thorough when looking over the terms could help you gain a better understanding of the risks involved.
</span>
</span>
</li>
</ul>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
Bouts with high levels of debt can leave you feeling overwhelmed and suffering from a lesser quality of life. If circumstances leave you dealing with similar concerns, a more long-term solution could be just the tool to help you steer back toward a healthier financial future.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial; font-weight: bold;">
Knowing the options
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
With a variety of available options to help you pursue debt relief, choosing the best path can seem an intimidating task. Fortunately, you don’t have to go through this on your own and seeking advice from someone who is knowledgeable in federal and Texas state bankruptcy laws could prove exceedingly beneficial. Such guidance could help you gain a better understanding of all your available options and prepare you to make informed choices as you pursue relief from the trials of debt through the necessary outlets.
</span>
</p>
<p>
<br/>
</p>
</div>Don’t let the shame of being in debt keep you from seeking relief2022-02-21T19:09:22Z2022-02-21T19:09:22Z<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
Most Americans are in debt. Some may only have what they consider good debt — such as a mortgage — but many have credit card and other financial obligations that make life tough. This is an issue that few people like to discuss with anyone because there is a sense of shame for letting one’s monetary situation get out of control. Being in debt is nothing to be ashamed of, and feelings of shame should not prevent you from seeking the relief you need.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
According to a recently published article, shame over debt is the reason people sink further into debt. They end up not seeking help or make rash decisions that are more damaging than they are helpful.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial; font-weight: bold;">
Understand debt has a purpose
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
While it would be nice to pay for everything outright, debt has a purpose. It helps people achieve things that they want — like higher education or buying a home — it also helps people build credit, which can help them reach their financial goals down the line. Debts that invest in one’s future may be worth the risk.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial; font-weight: bold;">
Not all debt is equal, however
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
Some debt is better than others. Credit card debt, for example, is not something people view as an investment; it is just another bill they can’t pay in full at the end of the month. The same goes for car loans and other unsecured debts.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial; font-weight: bold;">
People with children have more debt
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
According to NerdWallet, people who have children have higher credit card balances than people who do not. Of those who do carry credit card balances, most believe it will take them over a decade to pay back what they owe. Kids are expensive; that is not news. Raising children is also stressful, and adding debt to the situation certainly doesn’t help.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial; font-weight: bold;">
Debt affects mental health
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
Researchers have been studying the effects of debt on mental health. They found that:
</span>
</p>
<p>
<br/>
</p>
<ul>
<li>
<span style="display: initial;">
Most people in debt believe their mental health would improve if they were free from debt.
</span>
</li>
<li>
<span style="display: initial;">
There is a strong link between debt and depression.
</span>
</li>
<li>
<span style="display: initial;">
There is a strong link between debt and anxiety.
</span>
</li>
<li>
<span style="display: initial;">
These feelings also contribute to a sense of shame about one’s situation and prevent people from seeking debt relief.
</span>
</li>
</ul>
<p>
<br/>
</p>
<p>
<span style="display: initial; font-weight: bold;">
Bad things happen to good people
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
Not all debt is the result of needless overspending. Bad things happen to good people, such as job loss, illness or disability. It does not matter how you got into the financial position you currently find yourself; what matters now is figuring out what you are going to do about it. With help, you can better your situation and achieve the financial relief you desire.
</span>
</p>
</div>Credit card debt can get worse after job loss2022-02-21T19:09:21Z2022-02-21T19:09:21Z<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
From a relatively young age, you may have known what career path you wanted to take. You may have gone to the Texas college of your dreams to earn a quality education and later applied for a position that you thought would help you reach your career goals. After you got the job, you may have felt that everything was looking up.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
Though you held the same position for years, you now feel that your life is completely off track because you lost your job. No matter the reason behind your unemployment, you now face a serious predicament, especially when it comes to handling your financial affairs. In hopes of handling this unexpected ordeal, you may want to closely assess your credit card debt.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial; font-weight: bold;">
Debt can get worse
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
After being laid off or otherwise losing your job, your debt could easily become overwhelming. If you have pre-existing credit card debt, you may want to contact the companies that hold your accounts and determine whether they have hardship programs. These programs are designed to help individuals facing financial difficulties. Some may allow you to temporarily lower your interest rate or lower your minimum monthly payment to a more manageable amount. Of course, not all credit card companies offer these programs.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
Because debt can become so much worse when you are not generating an income, it is often best to avoid using credit cards altogether if possible. It may prevent you from creating higher balances that you may not be able to pay off. Still, you may find yourself in a predicament where using credit cards is necessary to meet your needs.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial; font-weight: bold;">
How can you handle it?
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
If your credit card company does offer a hardship program, follow the guidelines for the program as best as possible. Continuing to make payments, even a smaller amount, could help you maintain some control over the debt. However, if you reach a point where you cannot make any type of credit card payment, remember that it could be detrimental to your credit overall and result in penalty fees.
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
If job loss results in you facing financial burdens that you cannot handle on your own, you may want to look into Chapter 7 bankruptcy. This option has helped numerous people address their debt issues, and gaining information on this debt relief method may help you determine whether it is right for you.
</span>
</p>
</div>What can you do when debt collectors step over the line?2022-02-21T19:04:25Z2022-02-21T19:04:25Z<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
Owing a significant amount of debt can have various negative implications for your life. In addition to the fact that you have bills you cannot pay on your own, you may also be dealing with calls from creditors, letters in your mailbox and more. These attempts to collect on what you owe can add additional stress to an already difficult situation.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
There are times when creditors and debt collectors may step over the line when dealing with Texas consumers. These individuals can do their job, but they cannot harass you or act in certain ways toward you. You have protection against harassment and illegal treatment under the Fair Debt Collection Practices Act. This act prohibits predatory practices, and it is smart to understand what this law means for you.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial; font-weight: bold;">
Know your rights
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
It’s sometimes difficult to know if what you are experiencing qualifies as creditor harassment. No matter how much debt you have or what your financial situation is like, you do not have to endure certain types of treatment. The FDCPA offers you the following benefits:
</span>
</p>
<p>
<br/>
</p>
<ul>
<li>
<span style="display: initial;">
You can demand that debt collectors refrain from contacting you at certain times or while you are at work. They should not be calling you after 9 p.m. or talk to others about your debt.
</span>
</li>
<li>
<span style="display: initial;">
Debt collectors have to be truthful with people they are contacting. This includes stating who they are, being truthful about the debt and not threatening you with false consequences if you do not pay.
</span>
</li>
<li>
<span style="display: initial;">
Debt collectors must validate the debt when attempting to collect on it. You have the right to make sure that it’s really your debt before you pay anything.
</span>
</li>
<li>
<span style="display: initial;">
If you think that a debt collector is acting unfairly or contrary to the FDCPA, you have the right to speak out. You do not have to endure unreasonable behavior just because you have debt.
</span>
</li>
</ul>
<p>
<br/>
</p>
<p>
<span style="display: initial; font-weight: bold;">
Dealing with your debt
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
There are specific ways that you can make contact from debt collectors stop, even if they are not harassing you. By filing for consumer bankruptcy, you can deal with certain types of debt once and for all. Once you file, the automatic stay will go into effect, which will mean that collections agencies can no longer contact you.
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
This gives you the opportunity to follow the terms of your bankruptcy plan without the additional stress of people calling you constantly. It may help for you to speak with an attorney about your legal options and how you can protect your rights against illegal debt collection practices.
</span>
</p>
</div>Are you one of many in Texas facing serious financial crisis?2022-02-21T19:04:23Z2022-02-21T19:04:23Z<div style="transition: none 0s ease 0s; display: block; text-align: left;" data-rss-type="text">
<p>
<span style="display: initial;">
There are basically three overall categories that apply to every Texas resident’s financial situation. There is a global economy, a local economy and a personal economy. Any or all of these economic issues can affect your daily life and either make or break your financial portfolio. There’s a natural ebb and flow involved with finances. In short, you might have some months or years that are better than others.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
It’s best to try to avoid panic if you encounter financial problems in life. Worrying can’t solve anything, and it takes clear thinking and knowledge of options to determine a best course of action to help overcome financial obstacles. The more you understand about the types of issues that cause financial distress, the better equipped you’ll be to rebound if financial crisis hits your household.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial; font-weight: bold;">
How much do you know about money?
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
Most Texas residents have at least some basic understanding about how to handle finances, meaning they can deposit and withdrawal money from the bank, pay bills and fill out a tax form. However, if you have never increased your knowledge base regarding skills to handle a fluctuating, and sometimes unstable, economy, as well as the financial demands of a modern world, you may not be prepared to meet expenses or to know what to do when serious problems arise.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial; font-weight: bold;">
Are you a baby boomer?
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
The baby boomer generation is getting older now. Lack of savings or retirement preparation is causing many of them great financial distress. Government benefits are not exactly stable, and unless you have a lot of money in savings and a solid pension plan, what you had hoped would be the best years of your life may wind up being the most stressful.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial; font-weight: bold;">
More information is not always better
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial;">
You can access thousands of money-making and savings tips at the click of a button. Advanced technology enables you to tap into a virtually endless stream of information regarding finances, including how to recover from a serious financial crisis. The thing is: not all information is good information; in fact, some is completely erroneous and may even land you in deeper financial trouble in the long run. Knowing where to seek legitimate debt relief guidance is a key to overcoming financial distress.
</span>
</p>
<p>
<br/>
</p>
<p>
<span style="display: initial; font-weight: bold;">
What are the most viable options?
</span>
</p>
<p>
<br/>
</p>
<p style="line-height: 1.5;">
<span style="display: initial;">
Your financial situation is not going to be exactly the same as another person’s. However, by speaking to someone who has overcome or has helped others overcome serious financial problems, you can obtain guidance and support that may help you resolve immediate debt issues, as well as work toward restored financial stability in the future.
</span>
</p>
<p>
<br/>
</p>
</div>