Posted on August 13, 2009 by Bryan Fears

Is There A Down Side Of Bankruptcy?

While it is true that bankruptcy can be a good option to remove bad debts or save your home, it should not be entered into lightly. Following are the pros and cons when deciding to file for bankruptcy:

 

  • Filing bankruptcy means that your bankruptcy is listed on your credit report and remains there for 10 years on a chapter 7 and usually 7 years on a chapter 13. However, this does not mean that you have to wait to 7-10 years to get good credit again. Many bankruptcy clients have been able to get a mortgage from a bank to purchase a house about 2 years after the bankruptcy.

·         Another downside of filing bankruptcy is the cost involved. While bankruptcy does cost money, it can also save you thousands or even your home once debts are discharged or repayment plans proposed through bankruptcy. The fees paid to the court and a bankruptcy attorney are much less significant than if you had to pay your creditors or lose your home.

 

Each financial situation is different. Consult a competent bankruptcy attorney who represents debtors to find out what is in your best interest. For a free bankruptcy consultation contact bankruptcy law firm, Fears | Nachawati, toll free at 1.866.705.7584 or via e-mail at info@fnlawfirm.com. 

 

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Posted on July 22, 2009 by Bryan Fears

Are Payday Loans Dischargeable?

Yes, payday loans are considered creditors that can be added to a Chapter 7 bankruptcy petition. They will be discharged along with all your other debts.

 

Unfortunately, many people are not aware of this and do not include the payday loans in their petition due to intimidation tactics used by payday loan companies. Some of the tactics these companies use start way before a bankruptcy is anticipated. They will add a clause in the contract you originally signed that prohibits you from including them in a bankruptcy. But be assured that you are able to put your payday loan on a bankruptcy and that this is a clause that cannot actually be enforced by a payday loan company. Payday loan companies put that clause in a contract because they are insistent that you pay back the loan plus the exuberant interest rate they charge. This is how they make their money.

 

Make sure you consult with an experienced, highly skilled bankruptcy attorney regarding payday loan issues in your bankruptcy. For a free consultation, contact Dallas bankruptcy law firm, Fears | Nachawati, toll free at 1.866.705.7584 or info@fnlawfirm.com. 

 

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Posted on July 21, 2009 by Bryan Fears

Honest People Can Face Overwhelming Medical Expenses

Famed songwriter Bruce Springsteen complained in his song Atlantic City, “I got debts that no honest man can pay.” For many honest people debt can come suddenly through no fault of your own.

A recent report in the American Journal of Medicine states that medical bills contributed to more than 60 percent of U.S. personal bankruptcies. This study conducted by a team from Harvard Law School, Harvard Medical School and Ohio University found that more than 75 percent of these bankrupt filers had some form of health insurance and were "solidly middle class” - two-thirds were homeowners and three-fifths had gone to college. In many cases unemployment issues also accompanied the medical expenses. For some, that inability to work also meant the loss of employer-based health insurance.

Even families that were considered “well-insured” had to cope with high deductibles and uncovered expenses. Medical expenses for families with private insurance averaged $17,749, compared to $26,971 in medical debt for those uninsured, and $22,568 for those who initially had insurance coverage, but lost it at some point after the illness.

"Our findings are frightening. Unless you're Warren Buffett, your family is just one serious illness away from bankruptcy," said lead author Dr. David Himmelstein, an associate professor of medicine at Harvard Medical School.

Medical expenses can easily spiral out of control and result in lawsuits, wage garnishments, and property attachment and seizure. Compounding the problem are many fallacies and half-truths being passed around, like: “The hospital can’t sue if you pay them $10 per month.” or “I’m liable for my spouse’s medical bills.” If you are facing medical bills that you cannot pay, consult an attorney and investigate your legal rights. Only an attorney can explain your legal rights and help you navigate a path to recovery.

You can read the free full article from the American Journal of Medicine at http://www.amjmed.com/webfiles/images/journals/ajm/AJMMedicalBankruptcyJun09FINAL2.pdf

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Posted on June 4, 2009 by Bryan Fears

Can personal injury judgments be discharged in bankruptcy?

Yes, personal injury judgments can be discharged with a few exceptions. In fact, many people in Garland, Texas, file for a Chapter 7 or 13 bankruptcy to avoid paying on a judgment. There are many advantages to filing for bankruptcy to discharge a judgment. When you file for bankruptcy all liens on your assets will be removed. You will regain control over your bank account and your paycheck. Additionally, no further action will be taken against for any judgments or debts included in the bankruptcy. It is a perfectly legal way to wipe the slate clean and give you a fresh start.

In order to make sure that your bankruptcy application has been filled out correctly you should consult with an experienced Garland bankruptcy lawyer. During the consultation you can discuss your specific financial situation and exceptions to judgments such as:

·         Child Support

·         Spousal Maintenance

·         Fraud

·         Personal Injury Resulting From DUI

·         Student Loans

Because the Federal bankruptcy law is very specific on what can and cannot be discharged, it advisable for anyone considering bankruptcy to speak with a Garland Bankruptcy attorney.

Contact Garland bankruptcy law firm, Fears | Nachawati Law Firm, today for a free bankruptcy consultation via toll free at (866) 705-7584 or via e-mail at info@fnlawfirm.com.

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