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Brownsville Texas Bankruptcy Legal Blog

Dealing with credit card debt collectors

For many Texas residents, the holidays mean buying gifts, which often leads to overspending as people get carried away by the spirit of the season. In the first months of the new year, they may find themselves struggling to pay for the credit card debt incurred at the end of the previous year. When those debts cannot be easily repaid, they end up forced to deal with credit card debt collectors.

Numerous Texas residents handle this issue by simply not answering their phones or opening their mail. However, that could be a mistake. Ignoring debt collectors could make the problem worse. Struggling consumers may want to answer at least one phone call in order to see if there are any alternatives available such as making lower payments or negotiating a settlement of the amount of the debt.

Can a Chapter 7 bankruptcy help with student loans?

Numerous Texas residents pay their way through college with student loans. While in school, most of them had dreams of making enough money to support themselves and repay their loans without a problem. Then, reality set in, and they realized that paying for those loans is not as easy as they thought, and perhaps were told, that it would be. Most people are told that filing a Chapter 7 bankruptcy does nothing for student loans, but that may not always be the case.

Before filing for bankruptcy, many Texas college students look into alternatives. They may get into a debt repayment plan that allows them to make lower payments or no payments for a specified period. It does take a significant amount of time of not making payments before a student loan is considered to be in default. Even so, student loan companies can report delinquent payments as soon as 30 days after nonpayment. 

Many here in Texas struggle to find solutions to medical debt

Many Texas residents avoid going to the doctor as much as possible due to the high cost of health care. However, there are times when seeking medical attention is unavoidable. When a serious illness or injury strikes, the accompanying medical debt could financially devastate a family, and finding a satisfactory way to deal with it could prove elusive.

The first thing that any Texas resident should do when receiving a medical bill is to verify that it is in fact a bill and that the charges are not covered by insurance. Once verified, entering into negotiations with the provider could prove useful. Many medical professionals would rather receive some form of payment rather than none at all.

What to do when creditors file a lawsuit against you

Many people hope that creditors won’t keep knocking at their door forever. But, if you’ve stopped receiving collection efforts over the phone, online and in person, they probably haven’t given up just yet.

After attempting to collect unpaid debts, most creditors move on to plan B: Filing a lawsuit. If you’re being sued for overdue debt, it’s time to act fast. Here’s what you need to do to avoid legal action.

The repayment plan is at the core of a Chapter 13 bankruptcy

Many Texas residents experience financial hardships. However, not all of them need to risk losing some of their assets through the filing of a Chapter 7 bankruptcy. Instead, they may qualify to file a Chapter 13 bankruptcy in which most people retain most or all of their assets while reorganizing their financial lives and making payments on debts through a repayment plan.

Texas residents considering this debt relief avenue should know that it is more of a marathon than a sprint, which is one of the primary differences between Chapter 7 and Chapter 13. The repayment plan can last between three and five years depending on an individual's circumstances. Obtaining a thorough understanding of the process is crucial before deciding to file under this chapter of the Bankruptcy Code.

The post-holiday let down: Credit card debt

Part of the joy of the holidays for many here in Brownsville is giving. Going out and purchasing gifts for friends and family that they know the recipients will like and enjoy often provides a lot of joy for the giver. The problem is that joy may not last if those presents were purchased with plastic. The credit card debt many people incur during the holidays can haunt them for months or even years after the holiday season ends.

The inevitable increase on the monthly payment could be well outside the budget. If this happens, Brownsville residents could find themselves in dire financial straits as a result. Making changes in the budget might be all that is needed in order to deal with the increase in payments, but that may not be enough to alleviate the debt in a reasonable amount of time.

The basic steps of a Chapter 7 bankruptcy

Many Texas residents can attest to the fact that struggling with debt is no picnic. Many households reach the point where they can barely afford the necessities, let alone pay any discretionary bills. At this point, they probably attempted to deal with the overwhelming amount of debt through other means before coming to the conclusion that filing for Chapter 7 bankruptcy would be the best resolution, but the unknown could be intimidating.

Knowing what the basic process entails could make the situation less stressful. The first step is to obtain a bankruptcy counseling certificate by taking a court-approved course no more than 180 days prior to filing. Before filing the petition, it will be necessary to take the means test, which determines whether an individual qualifies to file. If so, then he or she may move on to the next step, which would be to file the petition.

Six ways to not overspend this holiday season

With the holidays in full swing, many people are eagerly hitting the stores and trying to come up with the perfect gifts for everyone on their wish list. With stores offering sales and coupons, it may seem like getting a good deal is easy to do around this time of year.

Just because everything is on sale does not mean that people do not overspend. According to The Penny Hoarder, 71 percent of people spend more than they planned to on presents. More than half of shoppers—57 percent—buy presents that were not even on their shopping lists. One could say overspending during the holidays is as American as apple pie.

No one should suffer under the weight of medical debt

No one plans to get seriously ill or suffer serious injuries. This makes it nearly impossible to plan for it financially. Many Texas residents think that since they have health insurance that they are covered if something happens. Sadly, many people find out that they still owe a great deal of medical debt even with insurance.

This type of debt can easily reach into the tens or hundreds of thousands of dollars. That kind of financial burden can easily devastate a family. The stress of owing the money is great enough, but when creditors and bill collectors start calling, emailing and otherwise harassing Texas residents, the pressure can get unbearable. At that point, it may be time to consider all of the available options.

A discharge isn't guaranteed in a Chapter 7 bankruptcy

If someone tells a Texas resident otherwise, he or she should probably run the other way. While most people do receive a discharge from a Chapter 7 bankruptcy, there is no guarantee it will happen. However, knowing the circumstances under which one may not be given could help increase the likelihood of receiving one.

First, Texas consumers contemplating filing bankruptcy should know that not all debts are eligible for discharge such as most taxes, student loans and child support. Moreover, if a filer neglects to include a debt ordinarily eligible, he or she remains responsible for it even if a discharge is received. A consumer may decide to reaffirm a debt with a creditor such as a mortgage or auto lender in order to retain an asset.

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Limon Law Office
890 W Price Rd
Brownsville, TX 78520

Phone: 956-465-2661
Fax: 956-544-4949
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