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Brownsville Texas Bankruptcy Legal Blog

Be careful not to jeopardize a Chapter 7 bankruptcy discharge

Finding a way to resolve financial difficulties can help relieve the stress that most Texas residents feel under these circumstances. For many, filing for Chapter 7 bankruptcy is the right debt relief option, and they expect to walk away with a fresh financial start and fewer debts. However, if not careful, they could jeopardize receiving the discharge they need.

One mistake that some people make is failing to thoroughly review their documents prior to filing them. Incorrect or missing information could result in a dismissal of the case instead of a discharge. Another important step that could easily be missed is failing to take the debtor education course required under the U.S. Bankruptcy Code.

How often can Chapter 13 or Chapter 7 bankruptcy be filed?

It is nearly impossible for Texas residents to predict when they will encounter serious financial difficulties. Perhaps a consumer had this problem in the past, and used Chapter 7 bankruptcy in order to gain a fresh financial start. Things may have gone well for some time, but then something happened to undo that progress. Perhaps an injury or illness, a job loss or a divorce caused another financial crisis.

Under these circumstances, it would make sense for a Texas resident to consider filing bankruptcy again. The first question that requires answering this time is how often this debt relief option may be used? The answer depends on a few factors. First, if the prior bankruptcy did not end with a discharge because it was dismissed, a consumer can file right away.

Facing debt collectors for credit card debt

Many Texas residents experience financial difficulties for a variety of reasons. Credit card debt is often part of those troubles. Once they are unable to make payments on these debts, they may discover the account has gone to collections. Handling this type of situation requires taking several steps. If the situation cannot be satisfactorily resolved, consumers may need to take additional measures to achieve relief from these debts. 

The first course of action involves verifying the information regarding the debt. Texas residents can request a statement from debt collectors handling their accounts. Not only does this verify the debt, but it also ensures that the calls are not the result of a scam.

Could a short sale help a homeowner facing foreclosure?

Even though the housing crisis appears to be in the country's rear view mirror, that does not mean that homeowners here in Texas or elsewhere in the country stop having trouble making their mortgage loan payments. Job losses, serious medical issues and other circumstances could still make it nearly impossible to make these important payments. When a homeowner faces foreclosure, exploring the option of a short sale might be worth the time.

It is entirely possible that a Texas homeowner could owe more on his or her mortgage loan than the home is worth. This means that selling the home for the fair market value will leave the homeowner short when it comes to paying off the mortgage on the property. When a short sale is approved, the lender agrees to accept less than the amount due. After closing, the lender ordinarily releases the seller from any further liability for the remainder of the mortgage loan, but this does not always happen.

Struggling with overwhelming medical debt is far too common

Getting sick or injured here in Texas or elsewhere in the country can be expensive. Even with health insurance, some people end up owing thousands of dollars in medical debt. Anyone experiencing this right now should know that others are going through the same thing.

The primary issue with this type of debt is that people do not choose to incur it. They end up owing large sums of money to health care providers due to an injury or illness they did not want. Moreover, most people do not have the ability to prepare financially for such an event.

Homeowners don't have to just accept foreclosure

Buying a home is often a rite of passage for many Texas residents. After all, it is part of the American dream. Right? The problem is that when a homeowner encounters financial difficulties, his or her mortgage loan lender may begin foreclosure proceedings for nonpayment.

Should a Texas homeowner simply accept this fate? It is not always necessary to do so. If he or she wants to keep the home, or otherwise avoid a negative mark on his or her credit, an alternative may be possible. Whether any of those alternatives will yield results depends on the particulars of the situation.

What does the FDCPA have to do with contact re credit card debt?

It seems as though it does not take much to end up with overwhelming financial issues. Credit card debt in particular can sneak up on many Texas residents just as it does for others across the country. For some, it is only when the incessant phone calls from creditors begin that the true scope of the problem really hits home. The last thing that people need as they are struggling with their debt is harassing phone calls.

Unfortunately, credit card companies have the right to contact consumers regarding their outstanding debt if it is not being paid. Fortunately, the Fair Debt Collections Practices Act does put some rules on how and when those phone calls can occur. First, the company may only make calls during certain hours -- between 8 a.m. and 9 p.m.

Chapter 7 bankruptcy issues: Bank levy and garnishment

Getting behind on financial obligations happens to many people, including Texas residents. These issues often arise out of some sort of crisis that drains financial resources such as an illness, an injury or job loss, among other things. When this happens, some creditors may attempt to get the money they are owed through a bank levy or a garnishment, both of which could be stopped, at least temporarily, through a Chapter 7 bankruptcy.

Even though both take the money of a Texas resident in financial trouble, there are differences between a bank levy and a garnishment. A bank levy authorizes a creditor to take money directly out of a consumer's bank account. Other than the fact that money comes out of this account to pay a debt without the consumer's permission, this debt collection method freezes the account until the debt is satisfied. This means that the account holder will not have the right to take money out of the account during this time.

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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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