Obviously, this is the most common question we hear from potential clients. Bankruptcy can be intimidating if you don’t know what’s involved – and that’s why we provide free consultation calls to everyone. Everyone who calls gets to talk to Mark, and he’ll take the time to listen to your financial situation and explain your options.
For many Americans, debt is a way of life. When that debt continues to pile up, many people think that filing for bankruptcy is the only way to solve their financial problems. While bankruptcy can definitely help erase debts and start you on a fresh path, it’s not always your only option. Many times, your financial situation might not be as hopeless as you think it is.
You should start by looking at your overall debt situation and assessing the status. If you’re not too far gone yet, these four tips can help you reduce your debt load and avoid bankruptcy. They’ll take time and dedication, but with some patience and hard work, you’ll be able to climb out of your financial hole and start over again.
1. Don’t add any more debt
When your debt spirals to the point where you can no longer pay it off, bankruptcy becomes your only option. The trick is to stop the downward spiral before it’s too late. Don’t add any more debt to your current load – no new loans, no new credit cards… nothing. If you need extra money, consider selling a few minor assets instead of taking out a loan or opening a new credit card.
It’s tax day, and that means many Americans are finding out that they owe even more money, thanks to the IRS. We always get questions at this time of year about how filing for bankruptcy will affect a family finances. In our last blog post, we discussed what can happen with any potential tax refunds during bankruptcy, and this time, we’re going to discuss how filing will affect a tax debt.
Even though the government tightened bankruptcy laws back in 2005, you still have the ability to relieve a tax burden. It’s important to meet with a qualified bankruptcy attorney first, so you can walk through the details of your situation and fully understand the possible tax implications or relieve you might receive.
Feeling overwhelmed by credit card debt? Are medical bills piling up? Call Mark Rubin today at 214-760-7777 for a free consultation. He’ll listen to your situation, then walk you through all of your options.
Let’s Learn About Chapter 13 Bankruptcy
(aka our ‘Debt-Survival’ plan)
Most of the bankruptcy laws are set forth in Title 11 of the United States Code, which is divided into chapters. For instance, there is Chapter 7 (sometimes called “total bankruptcy”, but that term is misleading), Chapter 13 (sometimes loosely referred to as the “bill consolidation” version of bankruptcy or a “wage earner plan”), Chapter 12 (bankruptcy for the family farmer), and Chapter 11 (bankruptcy for huge corporations).
The 2 chapters available to most people in need of help are Chapter 7 and Chapter 13. This post is going to cover Chapter 13.
The best way to do explain Chapter 13 bankruptcy is to compare it to Chapter 7. If you’re not familiar with Chapter 7 bankruptcy, click the link to read more information.
Do I have enough debt to file bankruptcy?
That’s a good question.
Many, if not most, of our clients eliminate a substantial amount of debt in filing a bankruptcy case. However, this is not the only criteria. A good number of our clients do not have any unsecured debt. They are behind on home and/or car payments and need some relief to catch these payments up. Other clients want to rebuild their credit. There are so many criteria in deciding whether to file a bankruptcy case that it is important to seek the advice of an experienced bankruptcy attorney who can walk you through all the different options that are available to you.
Call today for a FREE Debt Consultation.
Call toll free 214-760-7777.
It’s no secret that student loan debt is a problem in America. Tuition costs continue to skyrocket, and paired with shrinking government financial aid, student loan debt is now the number one debt problem for young Americans.
Just two weeks ago, Congress failed to stop an automatic interest rate hike for Federal Stafford Loans, which doubled interest rates from 3.4% to 6.8% – so the problem just compounded for undergrads across the country. The student loan situation looks pretty bleak for future generations as well.
We stumbled across this infographic this morning and had to share it. It shows the history of college tuition and student loan costs from the 1940’s to today. A few of the staggering stats include:
One question that we hear all the time is “can I file for Chapter 13?” Chapter 13 bankruptcy has several important restrictions. If you’re looking for a solution to your debt problems, your first step is to see whether or not you legally qualify for a Chapter 13 Bankruptcy.
Businesses Cannot File for Chapter 13 Bankruptcy.
Corporations and Partnerships cannot file under Chapter 13 Bankruptcy. On the other hand, if you own a business as a sole proprietor, you can file for Chapter 13 bankruptcy as an individual and include the business-related debts for which you are personally liable.
You Must Have Stable and Regular Income.
You must have stable and regular income to be eligible for Chapter 13 bankruptcy. That does not mean you must earn the same amount every month, just that the income is steady. In other words, your income must be likely to continue and it must be periodic – weekly, monthly, quarterly, semi-annual, seasonal or even annual. Here is a list of some types of income you can use to fund a Chapter 13 plan:
Last week we discussed the benefits of filing Chapter 7 bankruptcy. While it has some pros, it’s not always the right fit for everybody. That’s when you look at Chapter 13 bankruptcy.
Today we’re going to explore five main reasons why people choose to file Chapter 13 bankruptcy.
1. Stop Foreclosures, Repossessions and Garnishments
The second you file Chapter 13 bankruptcy, banks and other creditors have to cease their collection efforts. That means that they can no longer foreclose on your house or repossess your vehicle.
This halt in collections can be stopped for the entire duration of the case, which can last as long as five years, whereas with a Chapter 7 bankruptcy, the creditors must only stop for a few months.