Almost all consumer debt can be classified as unsecured, such as for credit cards and medical bills, or secured like your home or your car. Depending on what type of debt you have the most of will determine what type of bankruptcy you should file. Secured Debt This type of debt is backed by the … Read more
Certain types of debt cannot be wiped out during the course of bankruptcy. If you wish to continue to live in your house, you must continue to make house payments. If you want to keep your vehicle, you must continue to make your car payments. Depending on the type of bankruptcy you file and what … Read more
If you get behind in your debt, some creditors can seize the property that is used as collateral and sell it to recover some of the debt. Unsecured debt, however, such as credit cards, loans, and medical bills are harder for the creditor to recover any debt owed. When you file for bankruptcy, you provide … Read more
Having a co-debtor situation usually occurs when one person’s income is not enough for the loan. The co-signer lends their name to the loan as an assurance that the debt will be paid. When you have a co-debtor for a loan and the original signer defaults on the loan, the co-debtor becomes responsible for the … Read more
The moment the clerk stamps your petition when you file for bankruptcy with the courts, the “automatic stay” goes into effect. What this means is that creditors can not make any attempts to contact you regarding your debt during the entire bankruptcy process. Phone Calls Some lenders or third party collection agencies operating under the … Read more
Dallas Bankruptcy Lawyers regularly face questions for guidance around selling personal property to a family before bankruptcy. Many times, individuals want to sell some of their property such as an automobile or other personal effects to pay for their bankruptcy attorney or bankruptcy fees. While you are allowed to sell property to a family member … Read more
The unsecured creditor extends credit on the faith of the buyers/debtors ability and willingness to pay. If the debtor fails to pay, the creditor has legal means to receive payment from the debtor. If the debtor does not pay voluntarily, the creditor has a few options to take. Unsecured debt are things like credit cards, … Read more
In 1978 Congress passed the Fair Debt Collection Practices Act (FDCPA) to eliminate abusive practices and regulate the debt collection industry. According to the Federal Trade Commission’s website: Section 802 Congressional findings and declarations of purpose a. Abusive Practices “There is abundant evidence of the use of abusive practices by many debt collectors. Abusive debt … Read more
Paying off creditors before bankruptcy may seem like a smart idea. After all, you are trying to eliminate your debt, right? While conventional knowledge would support paying off as many creditors as possible before filing for bankruptcy, but under Bankruptcy Law, it can cause problems and delays in receiving your bankruptcy discharge. So despite your … Read more
Overspending, loss of a job, medical bills, and lack of savings are amount the top reasons for debt in America. Additionally, high household debt levels are still normal and haven’t changed much since the financial meltdown of 2008. While some forms of debt are avoidable and some aren’t, debt is most likely something that the … Read more