Bankruptcy Archives - Page 4 of 10 - Rubin & Associates

What not to do before filing for bankruptcy

While most of our potential clients ask about what’s involved in a bankruptcy case, and what they need to do when they are filing, many forget to ask what NOT to do… And the things you shouldn’t do before filing are just as important as what comes afterward.

In fact, there are several things you could do before your bankruptcy case that could cause major complications – and could possibly even cause your case to be denied!

As we always say, the most important thing to do when considering bankruptcy is to meet with an experienced bankruptcy lawyer. The advice and guidance you will receive are vital to avoiding bumps in the road during your case.

So, for anyone out there who is considering bankruptcy and has not talked to an experienced attorney yet, here are the five most important things you should avoid doing before you file for bankruptcy: (more…)

By Mark Rubin|2022-06-01T11:28:34-05:00February 24th, 2022|Bankruptcy, Debt|

Mortgage forbearance ending – how do you keep your house?

We are coming up on two years of the COVID-19 pandemic – clearly, no one thought it would last this long. Many Dallas-area residents have had to take significant pay cuts or have even lost their jobs. Our firm has helped hundreds of DFW residents get a fresh start after COVID-related problems caused unmanageable debt, but many other people in the area are still struggling.

Most of the foreclosure and eviction moratoriums have ended recently, so many Dallas residents are wondering how they’re going to keep their homes. Rubin & Associates is here to help! We have put together this blog post to help answer some of the common questions we’re hearing about the end of mortgage forbearance. (more…)

By Mark Rubin|2022-06-01T10:57:28-05:00November 30th, 2021|Bankruptcy|

4 Scary Ways to Damage Your Debt

It is Halloween this weekend, so we had to share something scary here on the blog… and this time, we are sharing 4 Scary Ways to Damage Your Debt. Let’s face it – nothing is scarier than overwhelming debt that spirals out of control.

If you are not careful about how you spend your hard-earned money, and even how you conduct transactions online, you can easily start down the path to crushing debt. Today’s post is going to examine the 4 most horrifying ways you can head down a scary financial path.

1. Hackers and scammers

Digital thieves have become incredibly creative – you need to be extremely careful whenever you provide your credit card number to ANY online service. Charities are a common ploy, so make sure you do research on a charity before you make a donation – especially if you are solicited at your front door or over the phone.

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By Mark Rubin|2021-10-29T12:44:53-05:00October 29th, 2021|Bankruptcy, Debt, Money Management|

6 Tips For Avoiding Bankruptcy

The proliferation of credit cards and the “gotta have it now” American lifestyle have lead to a problem: for many Americans, living with debt is par for the course. The changes in America’s financial landscape due to COVID and resulting lockdowns have only made things worse. In many cases, debt spirals out of control until filing for bankruptcy appears to be the only way out.

Most of our clients are regular, hard-working DFW-area residents who simply hit an unexpected bump in the road. Whether it was the loss of a job, reduction in wages, or an accident, a single speed bump on the road of life can send you in a completely different direction.

Once you start living on credit and spending more than you can afford to pay off, the debt multiplies quickly until it seems like there’s no escape. (more…)

By Mark Rubin|2021-09-26T14:26:16-05:00September 26th, 2021|Bankruptcy, Debt, Personal Finance|

Considering bankruptcy? Follow these 4 tips

Most of our clients come to us, struggling with massive debts that have spun out of control. One unforeseen bump in the road (a sudden job loss, an accident, a medical condition) is all it takes to send most families into a downward debt spiral. We have shared lots of tips in the past for avoiding debt, but it is also important to get advice from a financial advisor or bankruptcy attorney before you decide to file.

According to John Rao, a bankruptcy attorney with a Boston-based consumer advocacy group, you should “first explore opportunities to resolve problems outside of bankruptcy. Bankruptcy isn’t going to help everyone.”

Typically, you will want to consider bankruptcy if:

Most of your debt is “unsecured” (such as credit card bills or medical bills)
You are hounded by calls from collection agencies at home and at work
You have had wages garnished or your bank account frozen after a judgement
You have been sued

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By Mark Rubin|2021-07-19T11:17:21-05:00July 19th, 2021|Bankruptcy, Debt|

New York man dodges eviction for 20 years by abusing the bankruptcy system

One of the most common reasons that people file for bankruptcy is to stop foreclosure actions. Rubin & Associates help DFW area residents and property owners with cases like these quite often.

Every once in a while, stories pop up about people who abuse the system, and one of the most extreme cases we have ever heard hit the news last month. Reported in major publications like Fox News and the New York Post, a man in New York has avoided eviction for more than 20 years by filing multiple bankruptcy cases.

According to the article at the New York Post, the man bought a Long Island home for $290,000 in 1998 and made his first mortgage payment to his lender, Washington Mutual – and that’s the only payment he ever made. He has claimed bankruptcy seven times and filed four lawsuits over the years, all focused on letting him stay in the home. (more…)

By Mark Rubin|2022-06-01T11:19:02-05:00June 30th, 2021|Bankruptcy|

Should I File For Bankruptcy?
Should I File For Bankruptcy?

Bankruptcy, Personal Finance, Texas Bankruptcy

Should I File For Bankruptcy?

Filing for bankruptcy is a huge decision, and usually it has to be made under pretty extreme stress. Your circumstances are unique – so the best way to know if you should file is to call us at 214-760-7777 for a free consultation. The pandemic and ensuing lockdowns have made the situation even more stressful for many DFW area residents. This post will help answer a few high level questions, but it is always better to talk to an expert to get answers about your specific situation.

In general, these are a few of the most important questions to consider before filing for bankruptcy:

Can you pay back your debts outside of bankruptcy?
Are creditors suing you to collect their debts?
Are you facing foreclosure or repossession of your property?
How much property do you own?

Can you pay back your debts outside of bankruptcy?

Before you decide to file for bankruptcy, think about the types of debt you are trying to eliminate – and consider whether you can pay off those debts outside of bankruptcy. For example, if your main struggle is credit card debt, determine whether you can really afford to pay it off. If you make enough money to pay back your credit cards, you could consider consolidation, where you combine them into a single loan or settle your debt with the credit card company. (more…)

By Mark Rubin|2021-05-25T16:27:55-05:00May 25th, 2021|Bankruptcy, Personal Finance, Texas Bankruptcy|

Tax consequences of bankruptcy

It’s tax season again, and with the COVID tax delay, taxes are almost due. Every spring, we hear lots of questions from potential clients about the tax implications of filing for bankruptcy. It’s a fairly simple answer – it depends on whether the debt was discharged in bankruptcy or just forgiven by the creditor.

Tax implications of debts discharged in bankruptcy

If your debt is discharged as part of your bankruptcy case, there are no income tax consequences. Since the debt is excluded from your gross income, you do not have to worry about anything with the IRS.

Many times, you will receive a 1099-C form , which is for debt that has been canceled or forgiven. If your receive one, you will just need to file Form 982 with your taxes, which lets the IRS know that the debt was in fact discharged in your bankruptcy case.

What about debts cancelled outside of bankruptcy?

If you have borrowed from a commercial lender and that lender later forgives or cancels your debt, you will most likely have to include the canceled amount as income when you file your taxes. Typically, loan proceeds do not count as income because you are obligated to pay back the loan. Once the loan is canceled or forgiven, that makes the loan count as income.

If you are in this situation, your lender will have sent you Form 1099-C, “Cancelation of debt to the debtor.” They are required to send this form by the 31st of January of the year following the year when your debt was canceled.

The unpaid portion of your loan will be reported as income, unless:

You are insolvent when the debt is canceled.
You operate a farm and the debt results from your farm, more than half of your income from the last 3 years was from farming, and the loan was owed to an agency regularly engaged in lending.
It is a non-recourse loan
It is excepted by the Mortgage Debt Relief Act of 2007

If you are in a rough financial spot and you are considering bankruptcy – but wondering about the tax implications – call us today at 214-760-7777 and schedule a free consultation. We will walk you through the various parts of bankruptcy so you fully understand how things will work.

By Mark Rubin|2021-04-28T08:43:54-05:00April 28th, 2021|Bankruptcy|

Should you keep your car after bankruptcy?

It’s a question we hear all the time – after a client files their bankruptcy case, they ask us “Should I keep my car?”

Many times, if you’re filing for bankruptcy, you’ve been struggling with debt for quite a while, so it’s likely that you were behind on car payments. Now that the bankruptcy case is filed, you’re wondering if keeping the car is a good choice to make.

In most cases, your car is an absolute necessity – you’ve got to use it to get to work, or to handle everyday errands. In some cases though, the amount owed on your auto loan might not make sense after your bankruptcy case.

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By Mark Rubin|2022-06-01T11:03:11-05:00March 28th, 2021|Bankruptcy, Debt|

5 things to do after you file bankruptcy

You have just filed your bankruptcy case, and now you are on pins and needles. You’ve gotten all the paperwork together, answered all our “lawyer questions”, and filed all of your schedules with the court. What happens now?

Actually – not much… Most of the work has already been done at this point.

It is important to stay engaged, though. You do not want to hand everything to your attorney and then go silent.

We get the “what next?” question all the time, so we thought we would put together this list of 5 things to do AFTER you have filed your bankruptcy case.

1. Ask us questions

If you don’t understand something, let us know – there are no stupid questions! Let us know you are confused and we will take the time to explain things.

2. Open all your mail

Most of our clients are tired of collection notices, so they are not quick to open their mail. Make sure you are opening everything so you will see anything we send to you. We will send you a copy of everything so you know what is going on and what we are doing for you.

3. Respond quickly

If we ask you for information or any documents, don’t make us wait. Bankruptcy cases typically move pretty quickly, so we do not want a delay to complicate your case.

4. Keep us posted

Major life events can affect a bankruptcy case. If you have changed jobs, lost your job, had a major accident, or moved, you need to let us know.

5. Don’t worry!

Bankruptcy is confusing and scary – but our staff does this all the time. We have years of experience with bankruptcy cases, and most cases have no unexpected complications.

We are always here to help! If you have any questions or concerns, or you just need something explained, give us a call at 214-760-7777 and we will explain whatever you need.

By Mark Rubin|2022-06-01T11:32:27-05:00February 25th, 2021|Bankruptcy|