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Brownsville Texas Bankruptcy Legal Blog

Is consolidation the right solution for credit card debt?

Many people make rash debt management decisions that can affect their future financial situation in a major way. Debt consolidation under a line of credit is one of the common ways Texas residents manage their high interest credit card debt, but it is a good idea to weigh out the pros and cons of doing so before going ahead. It is important that people fully understand the terms of any line of credit before going ahead with this decision, and consider their own situation carefully before taking this step.

It can be a red flag if a Texas financial institution approves a large line of credit, especially for someone with a great deal of credit card debt. Look carefully at the terms for this loan before moving forward. Does the interest increase after a certain term? What assets are on the line if one is not able to pay as planned? 

Older Texas residents may benefit from Chapter 7 bankruptcy info

Anyone could make unwise financial decisions. Even people who feel that they are good with money could face unexpected circumstances that lead them down a tough financial road. It may interest Texas readers to know that older individuals are often facing considerable amounts of debt, and as a result, some of those parties may be considering Chapter 7 bankruptcy.

As mentioned, any number of circumstances could lead to financial woes. For older parties in particular, they may find themselves struggling due to their willingness to help out their loved ones. When a family member is facing his or her own financial issues or needs money for college, relatives may want to jump in to help. However, some parties may not have the financial stability to do so, and when they help out anyway, they end up struggling themselves.

Many people plan to pay some credit card debt with tax refunds

For some Texas residents, tax season is a stressful time. For others, however, the tax return they receive is a much appreciated boost to their finances. For many people in Texas and throughout the United States, using part or all of a tax return to pay down credit card debt is a popular choice.

According to a recent survey of 1,000 Americans carrying a credit card balance, 70.4 percent those receiving a tax refund plan to use it to pay down credit card debt. An additional 8.91 percent say they are unsure, but may use their refund for debt repayment purposes. Of the respondents who expected a tax refund, the average refund was $3,119.43 and they expected to use an average of 64.98 percent of the refund to pay down credit card debt.

Is filing for Chapter 13 bankruptcy affordable?

Deciding to take the steps necessary to get finances back on track is a big deal. It can take immense effort to accept that the situation will not get better on its own or even with help from an individual alone. Fortunately, Chapter 13 bankruptcy may be able to help qualifying Texas residents get their affairs in order.

Because financial concerns are already at the forefront for individuals considering bankruptcy, they may worry that they cannot actually afford the process. It is true that there are filing costs, legal fees and other expenses associated with bankruptcy proceedings. For Chapter 13 bankruptcy, the basic filing fees set by the federal court come to $310 for 2018. Depending on the specific circumstances of a case, additional fees may be added.

Want to avoid debt? Here are some tips

You saw how your best friend’s family lived, going from paycheck to paycheck without gaining any savings and adding a mountain of debt. They often ate at restaurants, succumbed to impulse buys, overdid it with credit card spending, and just made poor financial decisions.

If you were in their shoes, you’d realize that it was time to reevaluate a number of things in your life, namely about your spending habits. It’s time for a turnaround: Get out of debt, and sock away some emergency savings in case of a job loss, medical situation or some other life event.

Want to avoid debt? Here are some tips

You saw how your best friend's family lived, going from paycheck to paycheck without gaining any savings and adding a mountain of debt. They often ate at restaurants, succumbed to impulse buys, overdid it with credit card spending, and just made poor financial decisions.

If you were in their shoes, you'd realize that it was time to reevaluate a number of things in your life, namely about your spending habits. It's time for a turnaround: Get out of debt, and sock away some emergency savings in case of a job loss, medical situation or some other life event.

Chapter 13 bankruptcy may be the help some Texas residents need

When Texas residents feel that the time has come to face their financial struggles, it can be frightening. However, individuals should feel proud that they are willing to address their problems rather than allowing them to get worse. For some, Chapter 13 bankruptcy may be the avenue that helps them get back on track with their finances.

When considering bankruptcy, it is important to know about the different types for consumers. With Chapter 13, qualifying individuals generally have the ability to generate an income, and rather than liquidating assets, a repayment plan is used that allows parties to address their outstanding balances over the course of three to five years. Some people may want to put off following this route, but in reality, taking action sooner rather than later may help avoid additional difficulties.

Medical debt may cause Texas residents to second guess treatment

Receiving a cancer diagnosis can be one of the most frightening experiences of a person's life. As he or she battles through the difficulties such a disease can have, fearing for life is not an unrealistic feeling. On top of these difficulties, expenses relating to treatment continue to mount, and even if individuals do make it to remission, they may still face overwhelming medical debt.

Texas readers may be interested in one out-of-state woman who faced such a predicament. Reports stated that she had to deal with not just one but two cancer diagnoses in a five-year span. While battling breast cancer, she lost her job and insurance. Just years later, she ended up also having to face colon cancer.

Is Chapter 7 bankruptcy right for some Texas residents?

Facing the ups and down of financial instability can be beyond stressful. Any type of expense can suddenly send already limited funds even further into the red. Having to live this way can result in substantial stress and other negative impacts on Texas residents' health. Though some may be considering Chapter 7 bankruptcy, they may not know whether it is truly right for them.

There are other ways that people may be able to address their outstanding debts. For instance, some creditors may be willing to negotiate outstanding balances because they would rather receive at least some of what they are owed rather than having the entire balance forgiven during bankruptcy. Of course, creditors may not be willing to come to a settlement even when the subject is broached.

Texas taxpayers may need refunds to start Chapter 7 bankruptcy

With tax season well underway, many Texas residents may be anxiously awaiting their refunds. However, it is unlikely that most of those individuals who receive refunds will use that money for anything adventurous or out of the ordinary. In fact, some people may even be awaiting their refunds in order to file for Chapter 7 bankruptcy.

Because numerous individuals face financial struggles on a daily basis, few taxpayers actually use their refunds to treat themselves. More often, people put their funds toward medical bills or daily expenses that they need to catch up on. In fact, only 16 percent of individuals who participated in a related survey indicated that they were planning to use their tax refunds to make a significant purchase or splurge on something unnecessary.

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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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