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Brownsville Texas Bankruptcy Legal Blog

How Chapter 7 bankruptcy works

Bankruptcy can be a complicated topic to discuss or learn about, both because of incorrect information disseminated through popular culture, and because it is a complicated process. Chapter 7 bankruptcy can help Texas residents recover from unmanageable debt, but it is critical that the individual undertaking the filing understands the process as best as possible. This is why the support of an experienced bankruptcy attorney can be so vital to a successful filing.

Before filing for bankruptcy, the first step required by law is to take credit counseling courses. This helps to weed out those who do not actually require bankruptcy services. Even those who do choose to file after these courses are required to take additional debtor education courses following the filing. Obviously, this is not something that should be undertaken lightly.

The filer's responsibilities in a Chapter 13 bankruptcy

When Texas residents are faced with overwhelming debt, they often search for debt relief options that provide them with the most bang for their buck. In many cases, this turns out to be bankruptcy. Depending on income levels, many of those people will end up filing a Chapter 13 bankruptcy, which comes with numerous responsibilities for the filers.

People who file under any chapter under the U.S. Bankruptcy Code must file all of the appropriate documentation. Included with a Chapter 13 filing, however, is a proposed repayment plan that must outline how debts will be paid and the amounts in which they will be paid. Depending on the circumstances, the repayment plan may last anywhere from three to five years. It also must be approved by the court before it is implemented.

There may be some obstacles to overcome before filing bankruptcy

Many Texas residents find themselves dealing with overwhelming debt, but are unsure how to resolve the issue. One of the best things to come out of the Great Recession was the increase in acceptance of bankruptcy as a viable debt relief option. Even so, people still have trouble with the concept of filing for bankruptcy or have certain barriers to using it.

If you recently incurred new debt or paid off some old debt, you may have to wait a minimum of six to 12 months before filing. You may have a moral objection to filing for bankruptcy since you believe it is your responsibility to pay your debts despite the hardship. You may believe that because you only have one or two debts that you do not need to file bankruptcy. This may actually depend on the type of debts.

5 tips for working through probate disputes with family

After losing a loved one, strong emotions and extended periods of family time can spark rivalry and conflict. Probate disputes often pop up in these situations or in families that have long-standing conflicts.

Try a few of these peaceful ways you can resolve family conflicts to avoid probate disputes entirely or work through them more easily.

Options for responding to a foreclosure notice

Many people think they are out of options when they receive a Notice of Delinquency from their mortgage lender, but the reality is that there are some steps that can be taken to help save the family home. Texas individuals and families facing a foreclosure should work to understand the process and laws in detail in order to respond in the best possible way. With the right information and support, slowing down the process of foreclosure may be a possibility.

The first thing Texas individuals should do when facing foreclosure is to learn as much as possible about state laws related to mortgages and delinquency. Speaking with a lawyer is often the most efficient way to gather this information. A lawyer can also help to guide a person through their possible options under Texas law.

Step-by-step guide to tackling credit card debt

Debt can weigh down almost every aspect of a person's life. Texas individuals facing high amounts of credit card debt have some options for addressing their amounts owing; however, it is important to take the right steps in the right order. Here are some step-by-step instructions people can follow when looking to manage and pay off credit card debt. 

The first thing people should do is reflect on their situation. This includes making a budget for spending and figuring out exactly what is owed and to whom. Next, it is a good idea to look at debt consolidation options as a way to lower interest rates. While this isn't always the best solution, rolling balances into a new form can reduce the cost of debt overall.

Common mistakes when filing for Chapter 7 bankruptcy

Bankruptcies in the United States are technically down compared to last year, but experts say this news comes with a caveat. The recent decline of 1.8 percent is the smallest in years, showing that things have somewhat plateaued since the recovery period following the Great Recession. With 790,830 bankruptcy filings last year, Texas individuals considering Chapter 13 or Chapter 7 bankruptcy are far from alone. Here are a few things people should know before taking this step.

The first thing that consumers should do when choosing to file for bankruptcy is to make a list of all debts. Neglecting to list a debt in a bankruptcy filing may prevent someone from getting the fresh start they are hoping for. Another big mistake people make is waiting too long to file for bankruptcy, which could put them in a position where their food or housing situation becomes vulnerable.

Tips for avoiding consumer debt problems

High amounts of debt are directly related to anxiety and depression. Peace of mind is drained when your thoughts are consumed with worry about how you will repay your financial obligations. Unfortunately, depression can make you inactive and shut-down, avoiding the progress you need the most. The best solution is to avoid debt altogether and back away from accumulating any more than you already have.

When you know better, you can do better when it comes to your financial wellbeing. Freedom is possible with the right knowledge and support. Here are some key tips on avoiding debt problems and getting yourself into a stable place financially.

How to manage the effect medical debt has on a credit score

Americans may face medical debt even with health insurance for a variety of reasons, from high deductibles to uncovered items to billing errors and insurance disputes. Regardless of the reasons for medical debt, Texas residents can face consequences if these bills go unpaid. Many may wonder how delinquent medical bills may affect their credit.

Like other bills, medical expenses can affect credit when left unpaid. In fact, one-fifth of Americans surveyed by Consumer Reports noted that their credit had been negatively affected by unpaid health care bills. A lower credit score can make it harder to get a loan, rent a property or in some cases be approved for a job.

Conesequences of only paying the minimum when in credit card debt

It is not uncommon for Americans to carry a balance on their credit cards. Those who are having difficulty with payments may opt to only make the minimum monthly payment on the balance, usually between $20 to $25 or between 1 and 3 percent of the total balance. However, Texas credit card debt holders who do this may face some consequences down the line.

The average American household carries about $6,081in credit card debt at any given time. According to personal finance site NerdWallet, those who hold this amount of debt and pay only a minimum payment will accrue a whopping $4,063.89 in interest. This is assuming a 14.99 percent interest rate and 3 percent minimum payment; credit cards with higher interest and lower minimum payments could end up costing even more.

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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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