Texas Bankruptcy Blog : Texas Bankruptcy Lawyer & Attorney : Fears Nachawati law Firm : Chapter 7, Chapter 13, Consumer Bankrutpcy : Dallas, Fort Worth, Austin, Houston, San Antonio

The bankruptcy reform legislation enacted in 2005 requires bankruptcy debtors to complete a personal financial management course. The debtor must file a certificate of course completion with the bankruptcy court before an order of discharge can be entered. This class averages about two hours in length and instructs the debtor on issues such as developing a budget, money management, and use of credit.

Many bankruptcy debtors initially resent this course requirement.   However, most debtors report that they learn useful information and consider the course worthwhile. That is not surprising as most personal financial management studies indicate that our nation suffers from financial illiteracy. For example, a 2009 survey of 1,000 adults by the National Foundation for Credit Counseling found that:

• 41 percent graded themselves C, D, or F on their knowledge of personal finance;
• 42 percent surveyed kept close track of their spending;
• 64 percent have not ordered a copy of their free credit report in the past year;
• 33 percent do not contribute towards their retirement

Financial illiteracy can be a major contributor to personal financial failure. Some debtors have become overwhelmed by debt because they lack the tools for effectively managing their personal finances. The Personal Financial Management Course required by the bankruptcy laws is an opportunity for debtors to learn some basic management techniques. The aim is to educate the debtor to adopt a more disciplined and deliberate approach in managing household finances. 

The opportunity for a fresh start after bankruptcy means much more when you have a plan for your future financial success. If you are struggling with debt, speak to an experienced bankruptcy attorney and make the choice to get control over your personal finances.

There is no formal announcement made when someone files for bankruptcy, but bankruptcy filings are public records, which means the information is available to anyone who looks for it. However, under normal circumstances, the only people who will know you filed for bankruptcy are the people that you choose to tell.

Note that if you are asked on a job application, you do have to disclose that you filed for bankruptcy.

In general, though, your friends, family members and co-workers won’t know that you filed for bankruptcy unless you choose to tell them.

If you are considering filing for bankruptcy, contact the Texas bankruptcy lawyers of Fears | Nachawati today for free legal advice. Simply email us or phone us toll free at 1.866.705.7584 to speak with an experienced Texas bankruptcy attorney.

“Will filing bankruptcy ruin my credit?” This is a common question asked by individuals contemplating a bankruptcy filing. Usually this question is answered by asking another question, “If you are considering bankruptcy, isn’t your credit already ruined?”

Individuals in serious financial crisis generally wait too long before seeking assistance. A recent survey by the Consumer Bankruptcy Project, a continuing study of consumer bankruptcy filings, found that over 40 percent of individuals said they struggled with financial difficulty for more than two years before filing bankruptcy.

If you are facing a serious financial crisis, it is in your best interest to educate yourself and to identify your financial options. Waiting can only exacerbate the situation. Sometimes individuals try to “save the sinking ship” by taking on more debt (e.g. a home equity loan) to solve their debt crisis. Others empty their retirement accounts to pay down short-term debt. These tactics are short-term solutions and will rob your family of its future financial health. Even sadder is that many individuals discover that their quick fix solutions did not solve their financial problems – only now they are facing bankruptcy with no equity in their home, or without a retirement account.

A bankruptcy filing will stay on your credit report for ten years and may have a detrimental impact on your ability to borrow money (at least in the short run). However, bankruptcy will also lighten your debt load significantly and give you a second chance to arrange your finances in a way that is manageable for years to come.  If you are facing serious financial difficulties, speak to an experienced bankruptcy attorney before taking a quick fix route just to save your credit score. Don’t be “penny wise and pound foolish.”

Contact Fears | Nachawati today for a free consultation regarding you financial situation.  Call our toll free number at 1.866.705.7584 or e-mail us at info@fnlawfirm.com. 

 

 

On May 22, 2009, President Barack Obama signed the Credit Card Accountability, Responsibility and Disclosure Act.  This new legislation is intended to reform how

credit card companies deal with its customers. According to the White House,

”Just for starters, it bans unfair rate increases, prevents unfair fee traps, requires plain language in plain sight for disclosures, increases accountability all around, and institutes protections for students and young people.”

And while this is definitely a step in the right direction, it does not protect consumers who are in serious credit card debt at this moment. Most people are weighing basic necessities over paying a credit card bill. Even if you once had the recommended 6-month savings in your bank account, we have been in recession far longer than that.

In the meantime, the credit card bills continue to come, with late and over the limit fees for some. As a result, the bill does not get paid and the harassing phone calls and threats from the credit card companies begin to occur. If this is the case, filing for bankruptcy may be a good resolution to your credit card problems. It will help give you a fresh start and stop any collection actions by the credit card companies against your assets or paycheck.

If you are looking for a step in the right direction, contact bankruptcy law firm, Fears | Nachawati, toll free at 1.866.705.7584 or by e-mail at info@fnlawfirm.com 'for a free bankruptcy consultation.

 

Is your business turning a profit? Does it own any assets? Would you like to keep it running, or would you like to wrap it up? These are a few of the questions you should consider if you own a small business and are debating filing for bankruptcy.

If your goal is to keep the business in operation, you really need to look into a Chapter 13 Bankruptcy to relieve your budget and keep your doors open. If you’re ready to close up shop and want to move on with life, you should look in to filing a Chapter 7 Bankruptcy to give you a fresh start.

To talk with someone about the different options you have as a small business owner, contact Fears | Nachawati for a free consultation by calling toll free 1-866-705-7584 or e-mail info@fnalwfirm.com. 

 

This one is one the most common questions Austin bankruptcy attorneys hear.

The answer is that it really depends on the type of bankruptcy being filed and the individual financial circumstances of each person.

 

In short, yes you will be able to buy a home after bankruptcy. You may be required to come up with a bigger down payment and you may have to wait a few years but it is possible. But if you file for a Chapter 13 bankruptcy and it has not been discharged, you may need permission from the trustee to enter into an additional home loan agreement.

 

What you need to keep in mind is that you should have re-established your credit in 3-4 years after your bankruptcy is discharged. Even if a bankruptcy remains on your credit report for 10 years, most lenders will only care about the most recent activity and your current financial circumstances.

 

For a free consultation on how filing for bankruptcy today can help you have a better tomorrow contact Fears | Nachawati Law Firm toll free at (866) 705-7584 or via e-mail at info@fnlawfirm.com for a Travis County or Round Rock bankruptcy lawyer.

One of the most devastating life events can be an illness. It can affect anyone at any time.And what most people do not realize is that even if you are lucky enough to have medical insurance, not all medical costs are covered. Therefore, you can end up with huge medical bills and limited funds to pay them.

As a result, a substantial number of people in Austin (and many other parts of the country) are filing for Chapter 7 bankruptcy to eliminate medical debts. When you file for Chapter 7, your medical debts are discharged and you get to keep all of your property. The process takes approximately four months and you can then immediately start re-building your credit. 

 

Although the initial filing requirement is simple enough--you only have to live or have property in the United States, there can be complex issues that may require the assistance of an Austin bankruptcy lawyer. For example, you may be wondering when to file. A general suggestion is to not file until all anticipated bills have been incurred. If you are still sick and require expensive medical care, the filing should be delayed. A consultation with an Austin bankruptcy lawyer can explain these and many other issues in more detail.

 

 

For a free bankruptcy consultation to learn more about discharging medical debts through Chapter 7, contact Austin bankruptcy law firm Fears | Nachawati Law Firm via phone at  (866) 705-7584 or by e-mail at info@fnlawfirm.com.

Credit-card holders in Dallas and Fort Worth should benefit from House Bill, HR 627, which passed the House on Thursday.  The Credit Card Holders' Bill of Rights passed following lobbying by President Obama and the White House Administration.  If the Bill becomes law, the new provisions will not take effect for a year, other than one key requirement that customers get 45 days' notice before interest rates are increased.  The requirement may take effect in as soon as 90 days.  The changes in credit cards could cost the banking industry more than $10 billion a year in interest payments.  Because of the recession, many people have defaulted on their credit card obligations.  This Bill will certainly ease the burden of many households in the Dallas Fort Worth area and hopefully stymie the number of bankruptcy filings.  Questions or legal information inquiries concerning this Bill and its potential effect on individuals can be directed to info@fnlawfirm.com.

As the economy worsens, bankruptcy filings are on the rise. According to the American Bankruptcy Institute, consumer filings rose to 1.06 million in 2008, compared with 801,840 during 2007. The ABI based its study on data from the National Bankruptcy Research Center. Additionally, the National Association of Consumer Bankruptcy Attorneys jumped by one-third in 2008, to an estimated 3,200 practicing lawyers. "Consumers are under great financial stress, with no immediate end in sight," said ABI executive director Samuel Gerdano.  More than 1.3 million people in the United States are expected to file in 2009. While this is a relatively small part of the U.S. population, the number demonstrates that bankruptcy is not just something for ‘someone else,’ but instead, something for those who find themselves overwhelmed by today’s unsteady economy. Bankruptcy can provide a fresh start for the individual who finds him or herself in a difficult financial situation. So, while filing for bankruptcy may have in the past been something that no one wants to talk about, for many, it ends up being the light at the end of the tunnel—the saving grace that allows them to get their life back on track.  

These are tough times on the financial front. However, you don't have to watch your retirement hopes slip away from you.  You’ve been planning for your future and saving for retirement. But what do you do when your expenses outgrow your income? Is it wise to make early withdrawals from your retirement to pay for your expenses today? Many retirement plans penalize for early withdrawal. According to IN.gov, taking a lump sum distribution. “gives you the freedom to do whatever you want with the money.  But beware: at the time you cash out, you will owe all applicable taxes. If you're younger than 59-1/2, you'll pay a 10 percent penalty plus state and federal income tax on the full amount of your distribution (including the penalty.) This choice may also affect your ability to receive unemployment compensation . . . Also, if you are vested, you will lose your right to a lifetime pension benefit.” 

If you are overwhelmed by debt and cannot seem to catch up on your bills it is important to know there are alternative solutions to tapping into your retirement. If you are not ready to empty your nest egg solely to survive today and potentially exhaust your funds for tomorrow you may want to consider bankruptcy. For more information on bankruptcy please contact Fears | Nachawati Law Firm, Phone (214) 890-0711, 4925 Greenville Avenue, Suite 715, Dallas, Texas 75206.

Today, WallStreet was devastated following reports that Lehman Brothers Holdings Inc. filed for Chapter 11 bankruptcy early Monday morning and said it will slowly wind down its operations after being in business for 158 years. At $639 billion, Lehman's is the largest bankruptcy filing in U.S. history--easily surpassing the Enron and WorldCom collapses combined. Lehman filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court of the Southern District of New York. The company's broker-dealer subsidiary and other parts of Lehman were not in the bankruptcy filing. Shares of Lehman were down 90% to around 40 cents a share. According to the details of the bankruptcy filing, Lehman held consolidated assets totaling $639 billion and total liabilities of $613 billion. The largest creditor to Lehman Brothers is Citigroup (C: 15.34, -2.62, -14.58%), which has $139 billion in bond debt, followed by The Bank of New York Mellon (BK: 38.35, -1.60, -4.00%), which had a combined $17 billion in bond debts with Lehman. In other liabilities, Japanese bank AOZORA loaned Lehman $463 million, while Lehman also has an outstanding bank loan with Mizuho Corporate Bank worth $289 million.  For questions regarding bankruptcy, call the Fears | Nachawati Law Firm, Phone (214) 890-0711, 4925 Greenville Avenue, Suite 715, Dallas, Texas 75206.

The partners of Fears | Nachawati Law Firm were selected to give a presentation to Bankruptcy Lawyers and Practitioners at a continuing legal education seminar in Barcelona, Spain.  The presentation was a success, as lawyers throughout Texas attended the seminar in an effort to learn about the latest trends in Consumer Bankruptcy Law.  More about the presentation or press questions can be directed to the law firm's assistant at (214) 890-0711.

Oftentimes a person or family member suffers a catastrophic illness that leads to mounting medical bills not covered by insurance, job loss, divorce, and high credit card debt. Filing a chapter 7 (sometimes referred to as a “liquidation filing”) bankruptcy can be a solution for you. Not only will it help you out of the astronomical amounts of debt, it could help increase your credit score.
Here are some ways that Chapter 7 Bankruptcy may help increase your credit score and help you get your life back on track:
• Depending on your due diligence and ability to procure new credit, being back in the 600 range or higher in a short period of time after filing Chapter 7 Bankruptcy is possible.
• You can apply for credit immediately after your bankruptcy is over.
• You can get a new vehicle loan as soon as a month after your bankruptcy is over.
• If you have the income, you may qualify for a mortgage 2 years after your bankruptcy is over.
• By buying a new home, vehicle, or getting new credit cards, your credit score may rise in a short period of time.
Remember that filing a Chapter 7 Bankruptcy can help get you debt free and let you start again with a clean slate. For legal assistance and more information please contact the attorneys and counselors of Fears & Nachawati.
Fears and Nachawati Attorneys & Counselors
4925 Greenville Avenue
Suite 715
Dallas, Texas 75206
Phone: (214) 890.0711
fears@fnlawfirm.com
*Principal Office
*Se Habla Espanol
 

The rise of bankruptcy filings have increased in Dallas/ Fort Worth Metroplex due to job loss, divorce, medical bills, disability, identity theft, and the difficult economy we are facing today. If you are facing foreclosure, huge amounts of debt, repossession, bankruptcy may be the only realistic way out. Our lawyers are here to help. Contact the lawyers at Fears & Nachawati to find out about getting rid of debt and getting a fresh start.

The most common types of bankruptcy are set forth below:
Chapter 7 Bankruptcy: (Sometimes referred to as a “Total Liquidation”) If you have little property and can’t make your basic minimum credit card payments, Chapter 7 Bankruptcy might be the right option for you. Chapter 7 is different from other bankruptcy filings because the debtor does not typically need to make any further payments to creditors such as credit card companies once the bankruptcy court issues a bankruptcy discharge letter.
Chapter 13 Bankruptcy: (Referred to as a “reorganization”) Chapter 13 Bankruptcy can help to adjust debt and obtain reduction or relief on secured debt such as a house that may be in foreclosure. Even if your creditors disagree, under Ch. 13, people typically are allowed to retain their secured property while making reasonable payments to creditors that are oftentimes much lower than the original amount owed.
Please contact the attorneys of Fears & Nachawati for more details. They will provide you with general legal information and consult with you concerning whether bankruptcy is the right choice for you.
Fears and Nachawati Attorneys & Counselors
4925 Greenville Avenue
Suite 715
Dallas, Texas 75206
Phone: (214) 890.0711
fears@fnlawfirm.com
*Principal Office
*Se Habla Espanol