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During the day, you may have the ability to keep your financial worries somewhat at bay by concentrating on other tasks. However, when the time comes to get in bed for the night, those thoughts that stayed at the edge of your mind all day may come flooding forward. How will you make your next credit card payment? When will the next creditor call? What can you do about your garnished wages? These concerns affect numerous people who must contend with overwhelming debt. No matter what led to your debt, you do have options for effectively addressing those liabilities. In particular, bankruptcy may act as a significant step toward a fresh financial start. However, you may wonder whether taking this action really suits your circumstances. Has action been taken against you? When you face overwhelming debt, you may also face letters and calls from creditors every day. Over time, you may have become adept at avoiding these attempts at contact or requested a stop to such actions. However, more significant actions may have been taken against you with which bankruptcy may be able to help. Two actions that may make you consider this debt relief option more seriously include: Wage garnishment: If creditors are directly garnishing wages from your paychecks in attempts to pay your outstanding balances, you already face serious financial trouble. You may need every penny you earn to make ends meet as it is, and when you cannot hold on to your wages, bankruptcy may be able to help stop garnishments. Lawsuits: When creditors feel that they cannot effectively get you to pay your balances on their own, they may sue you for payment. Lawsuits are serious matters that could cause you to face even more financial strife while also facing orders to pay your liabilities. Fortunately, bankruptcy could help stop judgments in such cases. Because these actions can have serious outcomes, taking steps to stop them may help you in the long run. Can you attempt other debt relief methods? If you are not yet facing wage garnishments or lawsuits, you may wonder whether you could first attempt other actions before bankruptcy. Certainly, creditor negotiation and credit counseling could act as possible avenues to try. Of course, not all creditors feel willing to negotiate, and you may still need to address your full balances. Additionally, you may want to remain wary of services which claim they can reduce your debt or help you become debt free as many of these claims turn into scams that cost unsuspecting individuals more money. Though it can be frightening to consider such a major action, exploring your bankruptcy options further may help you get your financial affairs in order and bring back your restful sleep.

No matter what you do, you just can’t seem to get your head above water financially. In the last little while you’ve experienced loss of income, or you’ve had unexpected emergency expenses that you had to put on credit cards, or you or a loved one may have suffered a serious medical event, costing your family a small fortune. Maybe it was a combination of these or other hardships. Now you need help, but feel you are a bad person for seeking debt relief. There is and always has been a certain stigma surrounding bankruptcy in the United States. The truth of the matter is, Texas residents who need financial help are not bad people and no one should make them feel bad for asking for help. It is their right to pursue bankruptcy if it is what will best serve their interests. Stigmas attached to bankruptcy There are three types of stigmas often associated with bankruptcy. These are: Financial Emotional Social Emotional and social stigmas are often combined. They refer to how you see yourself after pursing a bankruptcy filing and how you believe people view you. People are afraid to let others down or do not want others to know they are struggling. When drowning in debt, the only thing that should concern you is fixing the situation. It shouldn’t matter how you do it and it really is no concern of anybody else’s. You do what will best serve you. The financial stigma sounds bad, but it can be a good motivator. Will your credit score go down if you file for bankruptcy? Yes. Will it stay that way forever? Will you be financially doomed for the rest of your life for seeking relief? No. While credit recovery after bankruptcy can take time, it is possible to do if you take full advantage of the bankruptcy filing and are cautious in your future financial decisions. Don’t let the stigmas stop you At the end of the day, you have to do what is best for you and your family. That may involve pursuing a bankruptcy filing and that is okay — it does not make you a bad person. Don’t let the stigmas stop you from seeking the relief you need. If you are not sure if it is the best course of action, you can seek legal counsel on the matter and then go from there.

Living in Texas definitely has its pros and cons, same as any other state. You’ve likely heard humorous remarks about everything being “big” here. The trouble is, not everything that’s big is good; for instance, big health problems, marriage problems or financial problems are anything but good. When big financial problems arise, it can have immediate and long-lasting negative effects on your life. Perhaps none of this is news to you because you are currently trying to overcome a particular financial crisis. Maybe things have gotten out of hand due to losing your job or facing an unexpected medical emergency. Then again, perhaps you’re still employed and in good health, but you got into a bad habit of spending more than you earn. Regardless of the exact reasons for your money trouble, if a lender is threatening to take ownership of your home, you’ll likely want to access all options available to halt the process. Valuable tools that may help you avoid foreclosure It’s worrisome enough to face several unpaid bills for substantial amounts than to be at risk for losing your home. If you have a spouse and children, the stress of it all may be a bit overwhelming. If you take a deep breath and do a bit of research, you may be able to access support that can help you get things back on track. In the meantime, the following information might be helpful as well: A lender can’t simply take over your home if you are unable to make a mortgage payment. There are foreclosure laws about such matters, and you have mortgage rights. Knowing your rights and how to protect them can help you avoid major problems. Foreclosure generally means a lot more work for a lender. In short, your lender may be willing to come up with an alternate payment plan so you get to keep your home and the lender does not have to take on the burden of foreclosure. There are certain debt relief options that halt the foreclosure process in its tracks, such as bankruptcy. There also happen to be various types of bankruptcy, each with its own eligibility requirements. To find out if a form of bankruptcy would help you solve your financial crisis (and keep your house), you may wish to speak with someone who is well-versed in bankruptcy law. There may also be immediate, practical, tangible things you can do to help resolve your money problems, such as cutting back on spending, selling assets or obtaining additional gainful employment to bring in more cash. If you know someone who has successfully avoided foreclosure, he or she may have some good ideas to help you rise above your current financial problems. Many other people who have gone through similar experiences in Texas have relied on experienced bankruptcy attorneys for support.

Many individuals experience the strain of financial hardships at some point in their lives. Perhaps recent monetary struggles left you in a bind, you might have chosen to turn to credit cards to help you overcome your temporary dilemma. Credit cards can appear exceedingly beneficial during times of struggle. However, with high interest rates and punishing late fees and consequences, if you fall behind, you could find yourself staring down an insurmountable amount of debt. Indications that your debts are an issue Substantial debt loads can place you under a significant financial strain, and the constant phone calls and collection letters do little to ease your stress. With credit cards, these issues can creep up over time, and you may wish to know the warning signs that debt is a problem so you can avoid a potential disaster, and some areas of concern may include the following: Rising balances: If the balances on your accounts are continually rising, chances are, you may be experiencing financial struggles. These issues could only grow worse as time goes by, and seeking relief may be advisable. Maxed-out limits: Having a maxed-out limit on one or more credit cards is another indicator of financial hardships. While you may be able to keep up with minimum payments at first, high interest rates can make your balance soar, and the snowball effect can be challenging to overcome. Trouble keeping up: As balances and interest rates rise, you may have trouble making even the minimum payment on accounts, which can be exceedingly troublesome and could indicate a need to seek financial relief. Credit-related rejection: Receiving a letter of decline when applying for new lines of credit could be worrisome and may be a sign that your credit score is suffering. You may also receive letters from companies offering promotional cards for those with damaged credit, which is another sign that your credit score may be suffering. Regardless of the issues you face, the burdens of debt may be causing you to suffer, and seeking advice on the options for debt relief could be in your best interests. Seeking guidance Although dealing with debt-related issues can be stressful and daunting, avoiding them will do little to make them go away. Perhaps you wish to pursue relief, but with numerous options available, each offering its own potential advantages and disadvantages, you might be uncertain how to move forward. You could speak with someone with knowledge in federal and Texas state bankruptcy laws for guidance, which might help you gain an understanding of each option and prepare you to pursue relief from the burdens of debt through the necessary outlets.

If you are dealing with an overwhelming amount of debt, you might wish to know more about the available options for relief. While there may be numerous outlets for debt relief, the correct path on which to pursue a healthier financial future could depend on your current circumstances. Perhaps you are continually unable to make monthly payments and have fallen well behind as a result. You might be in search of a more permanent solution and wish to explore the possibility of filing for Chapter 7 bankruptcy, but you might need to find out if you are eligible before proceeding. Determining eligibility for bankruptcy There are numerous factors that may influence the process, such as income and necessary monthly expenses. Before you can file for Chapter 7 bankruptcy, you will have to meet certain requirements via the means test. This part of bankruptcy includes the following: First step: In this step, you will have to compare your income over the previous six months with the state median income, and if yours is less than or equal to the state average, you could be eligible to file for Chapter 7 bankruptcy. Second step: Should your income be higher than the state average, you might still qualify if your remaining income after allowed expenses is insufficient to repay at least a portion of your debts. Change in circumstances: Perhaps you recently lost your job or had a medical emergency. Even if you fail the means test, you may still be eligible if you can show that a change in circumstances has reduced your income. Other options: If you are still unable to pass the means test, you could consider filing for Chapter 13 bankruptcy. However, if you are unable to repay even a small portion of debts, you may also consider waiting until you can take the means test again. Under certain circumstances, a person might be eligible to skip the means test regardless of income, an example of which could include a disabled veteran who acquires debt while on active duty. Speaking with someone with extensive knowledge of federal and Texas state bankruptcy laws could help inform you of the available options and how to proceed. Advice and assistance moving forward Filing for bankruptcy is a major decision, and the process can be exceedingly complex. With the potential weight of the outcome of a bankruptcy and the cost of any mistakes, seeking guidance from someone with experience in handling such matters could be in your best interests. By obtaining advice before proceeding, you could gain insight into the available options and their potential outcomes, which may in turn assist you in choosing the best path with which to pursue financial freedom.

If Texas residents who end their marriages in court were to name the key factors that led to their break-ups, answers would undoubtedly vary. However, there does seem to be a common denominator in many divorces. Lots of people say their martial declines began right around the same times they suffered financial problems, as if the two things went hand-in-hand. Others say their financial struggles arose during divorce proceedings or after the court issued decrees. In either of these cases, facing serious financial debt before, during or after a marital breakdown can make stress levels soar. Such situations also prompt a lot of decision-making. If you’re in a similar situation, the following ideas may help bring clarity and provide information that gives you access to financial and family law support as well. A few facts regarding bankruptcy and divorce No two marriages (or divorces) are exactly the same. Job loss, medical emergencies and other types of extenuating circumstances can place undue hardship on families that seems nearly impossible to overcome. One of the following situations may apply to your current state-in-life: During divorce proceedings, large numbers of people face unemployment or exorbitant medical expenses that land them in worse financial shape after divorce than prior to it. Post divorce expenses also lead to financial disaster for many people. Having to pay child support or spousal support on a single income proves far too difficult in many situations. Some people fail to realize that marital debts are shared in community property states; just marital property is split 50/50. Once your divorce is final, you can’t file joint bankruptcy with your former spouse; however, this might be an option before divorce. If your spouse is the only who files for debt relief, you may still be held accountable for marital debt. The last fact on the list may lead you to decide to delay filing for divorce while you address financial problems first. Whether to file for bankruptcy jointly then file for divorce, or wait until your divorce is finalized then file for individual bankruptcy is an intensely personal decision that typically has both immediate and long-term consequences. An experienced bankruptcy attorney can address the financial aspects of your situation. Exploring any and all debt relief options that may be available to you may help you resolve your current financial problems and create a plan for restored fiscal stability as you move forward toward a new lifestyle.

Having your own vehicle is an expense, but it is also a necessity for most people. You need to drive yourself to and from work every day and take your children to school and doctor’s appointments. Despite being a necessity for modern life, vehicles are prohibitively expensive for many adults. The majority of working- and middle-class families have to finance their vehicles. Taking on a long-term car loan can lead to manageable monthly payments, but it also means that by the time someone pays off the vehicle, it may need repairs or replacement. If someone falls behind on their car loan payments, the lender could repossess the vehicle because it was collateral for the loan. Will filing for bankruptcy stop vehicle repossession?

Living in a situation where you’re behind on bills, you are aware that you may have those debts sent to a collections agency. The agents working for those agencies then call, send letters and do their best to contact you to collect a debt. You might have gotten used to getting repeated calls or mailers from the collections agency, but what you should never get used to is creditor harassment. Debt collection agencies are bound by law not to intimidate, abuse, bully, browbeat or coerce consumers into paying off their debts. For example, it’s unlawful for debt collectors to curse at you or to make repeated calls that are intended to annoy you.

Chapter 13 bankruptcy allows people who do not qualify for Chapter 7 bankruptcy (or who would prefer to repay their debts over time) to set up a three-to-five-year plan for the repayment of their debts. Chapter 13 bankruptcy has advantages that other forms of bankruptcy may not, such as making it easier to afford your monthly debt payments and helping you keep all of your assets. Chapter 13 bankruptcy is known as a wage earner’s plan and is designed to help individuals pay back part or all of their debt over the course of three to five years. If the debtor earns a monthly income that is less than the current state median, the plan will be only for three years. If they earn more, then it will be for five in most cases.