Tag: ankruptcy attorney Dallas

  • Getting Out of Debt is Easy

    Getting Out of Debt is Easy

    Call: 888-297-6203

    Unless you take control of your finances when they first start spiraling out of hand, you will find it very difficult to manage them later. Despite your best efforts, bankruptcy might be the only way you might be able to get rid of your debts. However, filing for bankruptcy is a decision that can be quite emotional as well as confusing. Since most of the legal jargon goes above your head, Dallas based bankruptcy law firm Recovery Law Group says that hiring a lawyer is the best way to deal with bankruptcy. If you have not yet consulted with a lawyer, you can call 888-297-6023 to discuss your case with experienced bankruptcy lawyers.

    The primary thing before going ahead with bankruptcy is to know what is involved in the procedure. When you file for bankruptcy, you are declaring to the court that you are in no position to pay your debts. The court-appointed trustee inspects your assets and liabilities to understand which debts can be discharged. Once the court is assured of your inability to pay your debts, you can declare bankruptcy. Filing for bankruptcy also puts a hold on foreclosure, repossession or wage garnishment as well as other collection actions of the creditors. However, it is important to realize that certain loans are not discharged in bankruptcy. These include:

    • Child support and alimony
    • Student loan debt
    • Government debts like fines, penalties, taxes
    • Any expensive item (car, jewelry, boat, ) purchased just a few days prior to a bankruptcy filing

    Despite putting an end to creditor actions including suing you, you might have to pay back some debts, depending on which chapter of bankruptcy you have filed under.

    Bankruptcy Chapters

    The most common bankruptcy chapters are:

    • Chapter 7 – The courts can sell all non-exempt property, in this case, to pay back your creditors. Any remaining debt (unsecured, nonpriority) is deleted. Though bankruptcy discharge is given within 3-6 months, the downside of this bankruptcy chapter is that you might end up losing your home (or the equity in it) as well as your car if it is not covered in the exemptions. Chapter 7 bankruptcy filing is available to those people who don’t have enough income to pay back their debts. This bankruptcy chapter remains on your credit report for a duration of 10 years.
    • Chapter 13 – This chapter involves repayment of your debts through a court-approved Over a period of 3-5 years, you end up paying some portion (or the entire amount) of your debt. You can protect your assets (home, car, etc.) and even pay previously due mortgage payments through the repayment plan. This bankruptcy stays on your credit report for 7 years.

    Apart from these two chapters, Chapter 11 is used for business bankruptcy filing, while Chapter 12 is for a bankruptcy filing by fisherman and farmers.

    What happens when you file for bankruptcy?

    Filing for bankruptcy is a tough and emotional decision which can have ramifications in various aspects of your life. For starters, bankruptcy information is public i.e. banks, business associates, potential employers, etc. can have a look at your bankruptcy details. Once you file for bankruptcy, you might find it difficult to get any loan, even after a bankruptcy discharge. Your credit score hits hard and you might have to strive hard to make amends after getting a bankruptcy discharge.

    Filing for bankruptcy also involves various costs. Apart from the attorney’s fees, you need to pay $310 in bankruptcy filing fees for a Chapter 13 case. The attorney might charge somewhere between $1,500-$6,000 for this bankruptcy chapter! In the case of Chapter 7, the filing fees is $335 and bankruptcy lawyer might charge $835-$3,835 for their services.

    Preparing for bankruptcy is important

    Once you have come to the realization that bankruptcy is the only way out for you to get rid of your debts, it is important that you are aware of the requirements of the process. Before filing for bankruptcy, you can look for other debt-relief options like debt settlement, debt consolidation or lowering of interest rate by the creditor. Cutting down on extra expenditures, taking up another job, etc. are some other ways how you could avoid bankruptcy.

    You could opt for financial coaching where an impartial perspective would be provided with respect to your financial situation. Organized financial paperwork might come in handy when you talk to a lawyer or a financial coach. Get all your debts organized and list every one of them including child support and student loans etc. Trusting professionals is extremely important if you wish to get rid of your debts. Seek the counsel of experienced bankruptcy attorneys Dallas to get your bankruptcy successfully discharged.

  • Can Adding a Person Who Has Filed for Bankruptcy as an Authorized User to Your Credit Card Affect Your Credit Scores?

    Can Adding a Person Who Has Filed for Bankruptcy as an Authorized User to Your Credit Card Affect Your Credit Scores?

    Call: 888-297-6203

    Nothing affects your credit score as a bankruptcy. People who have been through bankruptcy procedure will vouch that rebuilding credit can take a lot of time. One of the ways you can improve your credit score is by asking a family member or a friend to add you as an authorized user on their credit card. This will be beneficial for a fresh out of bankruptcy person. However, it is a point of concern for the individual who adds a bankrupt person to their credit card. Many people have their doubts about having a bankrupt person as an authorized user on their credit card. Can this action affect their credit scores negatively too?

    As per lawyers of Dallas based bankruptcy law firm Recovery Law Group, adding any person as an authorized user to your account will not affect your credit report. Their bankruptcy is in no way related to your credit history. Credit history of both; the authorized user and the card owner are separate and includes accounts and public records mentioned in their respective names. Both, the bankruptcy public records and the previous credit history of authorized user will not be merged with your credit history. However, this account might be added to the authorized user’s credit report as they have become associated with this debt too.

    Adding someone as an authorized user to your credit card is a risky decision. Since you are the primary cardholder, any charges made by the authorized user are your responsibility too; especially if the authorized user fails to make payment for them. In case, you are unable to make payments on time due to additional charges, this will end up affecting your credit scores. Before agreeing to become a good Samaritan to help a friend or family member out, it is important to know the possible issues you might have to face. Consulting with expert bankruptcy lawyers at 888-297-6023 can give you numerous options.


      *Are you more than 60 days past due on your mortgage?

      *Do you own a home?

      Are you currently working?

      By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

    • Basic Steps for Filing Chapter 7 Bankruptcy

      Basic Steps for Filing Chapter 7 Bankruptcy

      Filing for bankruptcy is a complex process and needs expert guidance to deal with the nuances. Call 888-297-6023 to discuss your case. Although you could file for bankruptcy without lawyer too, Dallas based bankruptcy law firm Recovery Law Group inform, it is not likely to end up with a discharge. The basic steps involved in Chapter 7 bankruptcy are:

      1. Analyzing your debt

      Before filing for bankruptcy, find out which debts will remain even after bankruptcy. These debts include student loan, child and spousal support and any recent tax debts. Any collateral pledged for debt is likely to be taken by a creditor if you fall behind on payments either when you file, during your bankruptcy case or after the case.

      1. Finding out exemptions

      Exemption laws (federal and state) allow debtors to keep some extent of the property. When you file for Chapter 7 bankruptcy, it is important to find out how much equity in the property you can keep. Household furnishings, a modest car, retirement accounts and some equity in the home are exemptions available to Chapter 7 bankruptcy filers.

      1. Checking eligibility

      Chapter 7 eligibility includes passing a means test. Your average gross income for the past six months must be less than the median income for a family of the same size in your state for you to qualify. In case the average income is above the median, your allowed expenses are deducted to find out if you can use Chapter 7 bankruptcy to get rid of your debts.

      1. Dealing with secured debts

      Secured debts like a car loan or house mortgages have collateral attached to them. If you wish to keep the property, you need to keep making payments to the creditor. However, when you file for bankruptcy you have the option to either redeem (pay the creditor the current value of the property as a lump sum amount); reaffirm (continue to make payments to the creditor as per agreement); or surrender the property. In case you remain current on your loan, an agreement can be reached with the creditor to keep your property.

      1. Dealing with bankruptcy forms

      Along with bankruptcy forms, you need to inform the court about your income, assets, expenses, debts and prior transactions, including any property transaction that took place 10 years prior to a bankruptcy filing in Dallas. You also need to provide a comprehensive list of your creditors, property exemptions and decide the course of action for your secured debts. You can file the papers by opting for emergency filing (file a few required forms) or filing all your forms including schedules together.

      1. Attending credit counseling course

      It is mandatory for people filing for bankruptcy to attend a credit counseling course and complete it prior to the filing of bankruptcy papers or shortly after that.

      1. Pay filing fee or request a waiver

      You need to pay fees for filing bankruptcy papers. If you can’t afford it, you could ask for installments, or a complete waiver. If you meet the criterion (household income less than 150% of federal poverty guidelines or insufficient income to pay installments) the judge can issue a waiver.

      1. Submit relevant documents

      You need to submit bank statements, tax returns, pay-check stubs, profit and loss statements mentioned in your bankruptcy papers to the bankruptcy trustee.

      1. Attend meeting

      You need to attend a creditors meeting with the trustee where you will be asked questions that you need to answer under oath.

      1. File objections

      In case you wish to eliminate some liens or dispute any creditor’s claim, you can address these matters before the matter closes. Courts might allow you to reopen a case if you forgot to take care of any lien.

      1. Handle secured debts

      You need to act on your secured debts as mentioned in your bankruptcy papers before the case closes.

      1. Finish debtor education course

      You need to complete the second course (debtor education course) after filing your bankruptcy papers before receiving a discharge. In case you are unable to do so, the case will be closed without a discharge.

      1. Get discharge

      A successful bankruptcy ends with the discharge of your qualified debts. You are no longer legally obliged to pay for those debts.


        *Are you more than 60 days past due on your mortgage?

        *Do you own a home?

        Are you currently working?

        By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.