What is the “Automatic Stay” in Bankruptcy?

The “automatic stay” stops just about all actions by your creditors against you or your property as of the moment your bankruptcy case is filed. “Stay” is just a legal word for “stop.” It’s “automatic” because the very act of filing your case “operates as a stay” against the creditors’ actions.

What Happens to People Who Fraudulently Incur a Debt?

The simple answer is that IF they are challenged on it during their bankruptcy case, they will likely not be able to discharge that debt but will have to pay it.

Thinking about giving that car away or repaying that debt off to a friend before declaring bankruptcy? Think Again!

Two of the biggest traps in bankruptcy involve transfers of your possessions and payments on debts made within a certain amount of time before you file bankruptcy.

The Three Classes of Debts

You will be able to understand how bankruptcy works much better once you understand the three main classes of debts. Bankruptcy law does not play favorites with your creditors, except when those creditors are legally different. The most basic way that creditors are legally different is whether a debt is a “general unsecured debt,” a “secured debt,” or a “priority debt.”

Secured Debts in Chapter 7

A secured debt is one in which your obligation to pay is secured by the creditor’s rights the collateral. If you do not stay current on the debt, that triggers the creditor’s ability to pursue that collateral, to repossess a vehicle, for example. Chapter 7, the most straightforward type of bankruptcy, gives you some important advantages in dealing with your secured debts.

Transferring Balances among Credit Cards

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People struggling with debt often wonder whether or not they should take advantage of balance transfer offers. Maybe you have a credit card with a low balance or maybe you’ve been pre-qualified for a credit card with a low introductory rate on credit card balances. It doesn’t matter – the offers are usually the same: for twelve to fourteen months, you’ll have an introductory 0% interest rate on balances you transfer from other credit cards. After that, your interest rate will adjust to the market average of 12.99% or 13.99%. So, what should you do? Will it help or hurt your credit score?

Recent Reports indicate Credit Card Debt at Breaking Point

Debt Relief • Bankruptcy • Dallas, Fort Worth, Plano Chapter 7 Attorneys

According to a February 26, 2012 article published by Fox News, more and more Americans are falling back into debt. This time, however, many don’t have the safety net of a home or other assets to help bail them out. This trend is especially troubling since 2011 marked the year consumer debt rose to its highest in a decade. While trends suggests Americans undertook measures to reduce their credit card debt in the past year, it looks like many consumers are beginning to rely on debt more and more to weather the current financial storm.

Cash in the 401(k) or File for Bankruptcy?

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Maybe you or your spouse has lost a job, making it difficult to stay current on mortgage payments. Maybe an illness or prolonged sickness has created medical bills you can’t possibly pay. Coupled with these financial pressures, you find yourself using credit cards more and more often just to make ends meet. Given the difficult economic times in which we live, many couples and individuals have found themselves facing insurmountable debt through circumstances beyond their control. As a result, many Americans have chosen to cash in their 401(k) in order to pay down debt owed on credit cards and medical bills. Doing so, however, could end up costing you thousands – if not hundreds of thousands – of dollars in the end.

Protected Property – Understanding Texas Bankruptcy Exemptions

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There are a number of misconceptions that surround bankruptcy. Perhaps the most persistent is the idea that if you file for Chapter 7 or Chapter 13 bankruptcy, you’ll lose some or all of your property. However, nothing could be further from the truth. In actuality, Texas is one of the most generous states when it comes to bankruptcy exemptions. Under Texas law, each person filing for bankruptcy can exempt all or at least a portion of his or her personal property from garnishment, seizure, or attachment.

Condo Owners and Bankruptcy

Condo Owners and Bankruptcy – What You need to Know

Condominium owners facing bankruptcy, as well as Condo Associations, should be aware of how Chapter 7 or Chapter 13 affects condo owners. Under Section 523(a)(16) of the bankruptcy code, condominium association fees are not dischargeable through bankruptcy, unless association fees were first assigned after a condo owner filed for Chapter 7 or Chapter 13. Practically speaking, this means monthly association fees could continue to accumulate if a condominium owner is foreclosed upon. If a condo association or co-op depends on association fees to help pay for repairs or provide basic maintenance, bankruptcy on the part of a condo owner could result in a depletion of financial reserves and the need to issue a special assessment.