Dallas Bankruptcy Lawyer

One common question many people ask when consider filing bankruptcy in Dallas, or elsewhere, is whether they will lose all of their possessions if they file for bankruptcy.

The short answer is no.

While it's true that under the Bankruptcy Code a debtor's property becomes part of the bankruptcy estate for the trustee to administer, several exemptions exist that protect the debtor's property from becoming apart of the estate.

In essence, the property is listed on the bankruptcy schedules as an asset, but then it is claimed to be exempt from creditors under a specific exemption available to the person filing bankruptcy on another schedule.

As a result, under the exemption provisions available, a person filing bankruptcy in Dallas would be permitted to keep their home, clothing, cars, and much more.

In closing, if you are worried about losing everything you own if you file bankruptcy then stop worrying. For most people filing bankruptcy they will not lose any property.

Dallas Bankruptcy Attorney Post - July 29, 2011
Category: Bankruptcy, General, Property, Exemptions

The purpose of filing bankruptcy is to provide the filer with a fresh start, and in many ways, it can be viewed as a "do over" for those that have fallen on hard economic times for various reasons.

To provide this fresh start several provisions of the bankruptcy code work to assist those needing debt relief. Probably one of the biggest advantages provided to the person filing bankruptcy is the Automatic Stay. This is a provision in the bankruptcy code that essentially tells all creditors, and potential creditors, to stop all collection actions.

This permits your bankruptcy attorney, the U.S. Trustee, and the bankruptcy court to get a clear picture of the financial situation and to stop any actions that might hinder your fresh start.

For most people considering filing bankruptcy this results in real world assistance to stop collection calls, prevent a home foreclosure, or keep their vehicle from being repossessed.

The point is that you do not have to be subject to debt collectors' phone calls at home and work, and the Automatic Stay can provide the fresh start you need while your bankruptcy lawyer is working towards getting your financial health in order.

Dallas Bankruptcy Attorney Post - July 23, 2011
Category: Bankruptcy, General, Debt Relief, Automatic Stay, Fresh Start

Auto-debiting, also known as direct debiting, your bills from you checking account may sound like a good convenient way to pay your monthly bills, but in reality it can easily turn into a nightmare.

And here's why....

Once an auto-debit is authorized it is often not just a simple phone call to get the payments to stop. While this may be the impression you're given when you sign up to have your monthly payments taken out of your checking account, the reality is that many banks may be reluctant to stop it once it starts.

Can it be done? Yes, but you're probably going to find out that it's easier to close the bank account than try to get a bank to stop sending payments to the credit card companies from that account.

While this is a step you should consult with your bankruptcy attorney before taking, one of the pre-bankruptcy filing measures many consumers may need to take is to close their current checking account to stop these auto-debit payments. And in some cases you may need to change banks all together to stop money from being withdrawn from your accounts.

The reason you may need to change banks all together is to fight an "off-set." This commonly comes up when you have a credit card that is issued by the same bank that holds your savings or checking account.

Here's how an off-set works? Let's say that you have a checking account with Big Bank of the US (Big Bank), plus you have a credit card issued to you by Big Bank. If you fail to pay your credit card then there's a strong chance that written into all the fine print Big Bank hopes you never read is a right to "off-set." This simply means that Big Bank now has the right to go into the accounts you hold at their institution and collect the money for the credit card payment. The end result is you wake up one morning to find that some, or all, of you money is taken out of your account.

And if for some reason they have a right to "accelerate" (a fancy way of saying all of the money owed on the account is due immediately) then you might see more than just your minimum payment and the past-due amount taken out of your account.

Here's how to avoid it? Never agree to auto-debit your payments in the first place. Granted, Big Bank is going to tell you how convenient it will be to pay your credit card this way, but they aren't telling you whom will really receive the convenience for setting up the account this way.

Auto-Debits and Pre-Bankruptcy: Prior to filing bankruptcy, do not be surprised if your bankruptcy attorney recommends closing your bank account or switching banks all together. You'll probably be advised to switch bank accounts if you hold a credit card issued by the same bank holding your checking and/or savings accounts if you have auto-debit setup.

In closing, remember that when you authorize someone to tap into your bank account you may be opening yourself up for bad things to happen to you.

Dallas Bankruptcy Attorney Post - July 19, 2011
Category: Bankruptcy, Pre-Bankruptcy, Auto-debit

Bankruptcy Myth #1: People will know that I have filed bankruptcy

Unless you tell someone that you have filed bankruptcy then most people will never know.

While bankruptcy filings, like almost all other court filings, are available for public review, the truth is that no one outside of those having an interest in your bankruptcy proceeding (e.g. your bankruptcy lawyer, creditors, and bankruptcy officials) will likely take an interest in your filing a bankruptcy petition.

Bankruptcy Myth #2: If I file bankruptcy they will take everything from me

Odds are you will probably keep all of your property, and here's why....

When a bankruptcy petition is filed, one of the schedules submitted to the court is a list of property, also known as your assets, that are claimed to be exempt from the bankruptcy estate. In Texas, the exemption list is extremely generous, and as a result the average person filing bankruptcy in Texas does not lose any property under the Texas exemptions. For example, your Homestead has an unlimited value exemption. The only limitation is on acreage amounts, and these too are very generous. For example, you are allowed to have up to 10 acres in the city limits. Even your earned, but unpaid wages, are exempt from the bankruptcy estate. Pensions, work tools, and much of your personal property cannot be taken away from you.

Bankruptcy Myth #3: They will never give me credit again

The truth is that you're probably one of the lowest credit risk a creditor can have right after you filed bankruptcy, and here's why....

Once you have received a discharge of your debts from the bankruptcy court two things happen. First, the amount of debt you have is likely significantly reduced, and as result, you have more disposable income. Second, you are not allowed to file another bankruptcy petition for set amount of years after discharge as determined by the chapter of bankruptcy filed under the Code. As a result, a future creditor will likely feel more comfortable lending you credit.

Of note, the decision to lend credit is always up to the individual lender, and due to the tightening of credit restrictions imposed after 2008, you might have difficulty receiving a car or home loan within the first few years after a bankruptcy.

Bankruptcy Myth #4: I owe a friend or family member, but I won't be able to pay them back if I file bankruptcy

This is simply not true. While you have an obligation to name all of your creditors in the bankruptcy schedules, you also have the right to repay them if you wish even after the debt has been discharged in bankruptcy. The main distinction is that while you are not under an obligation to repay them you can opt to reaffirm a pre-bankruptcy debt, and this includes those debts owed to family and friends.

Bankruptcy Myth #4: My boss can fire me if I file bankruptcy

This is also is not true, because it is against the law for an employer to terminate your employment on the grounds that you filed bankruptcy.

Dallas Bankruptcy Attorney Post - July 15, 2011
Category: Bankruptcy, General, Debt Relief

The types of bankruptcy cases available are the same regardless of whether you are filing bankruptcy in Dallas, or elsewhere in the country. The reason for this is that bankruptcy filings are governed by Federal Law, and for this reason, the laws surrounding bankruptcy are the same regardless of jurisdiction, and as a result, the bankruptcy laws in Texas are the same as in Florida. While the laws concerning bankruptcy may be uniform, the exemptions afforded to those filing bankruptcy differ widely from state to state throughout the United States.

When it comes to what type of bankruptcy case, or which chapter to file under, is a decision that you should speak indepth with your Dallas bankruptcy lawyer.

Most people will normally be looking at one of two chapters under the bankruptcy code. These two chapters are 7 and 13 of the Bankruptcy Code. The specifics of your financial situation, and the goals you are seeking to obtain through a bankruptcy filing, will likely determine which of the two chapters you file.

Chapter 7 is commonly known as the liquidation chapter. A bankruptcy filing under Chapter 7 allows you to walk away from your debts, and keep all exempt property. For example, if a home was foreclosed on but the bank and/or collectors were attempting to collect any balance resulting from the foreclosure sale and the mortgage balance then under a Chapter 7 bankruptcy a total discharge would result. As a result, you would no longer be liable for the difference between what your house was sold at foreclosure and remaining amount of the mortgage. This is known as having the debt discharged, and you would no longer owe the mortgage company, or it's collection company, any balance. More importantly, by law the bank or its collectors could not attempt to collect the old debt, because the amount previously owed is forgiven.

In our next segment, will look at the second most commonly filed bankruptcy by consumers....

Chapter 13 bankruptcy filing is often referred to as a reorganization of your debt. It is often used when you are trying to avoid a home foreclosure or stop a vehicle repossession. In a Chapter 13 your bankruptcy attorney would develop a plan between you, your creditors, and the bankruptcy trustee that would result in you making payments for a given time, and once that time period was complete you would then receive a discharge.

For example, if your home was about to be foreclosed on at a Dallas County Sheriff's sale and you wished to keep the home then your bankruptcy attorney would most likely file under Chapter 13. As a result, an automatic stay would be imposed and it would stop all legal action against you, including home foreclosure. Next, the parties would work out a debt reduction plan in hopes of allowing you a fresh start.

Dallas Bankruptcy Attorney Post - July 7, 2011
Category: Bankruptcy, General, Debt Relief

In today's economic climate, it is not uncommon for people to find themselves in dire financial situations. Whether your financial situation was caused by unemployment, an increase in debt, or another situation that has impacted your financial health, all hope is NOT lost.

Our bankruptcy laws are designed to give people a "fresh start." Simply put, it is designed to allow you to hit the restart button on your life so that you can regain your financial soundness.

All too often, bankruptcy lawyers in Dallas, and elsewhere across Texas, initially meet clients that feel that all hope is lost. This is not the case, but you must take action to regain your financial stability.

The thing to remember is all is not lost, and you can recover from your current financial situation.

Dallas Bankruptcy Attorney Post - July 1, 2011
Category: Bankruptcy, General, Debt Relief