by Mike Wallace | May 11, 2017 | Bankruptcy, Chapter 7
CREDIT CARD COMPANIES MAKE IT A COMMON PRACTICE TO FILE LAWSUITS AGAINST DELINQUENT CARDHOLDERS
If you have been sued by a credit card company or a junk debt buyer, you can count yourself among the thousands of individuals that are sued on a daily basis throughout the country. So, you have been served with suit papers, what do you do now? You do not want to do what the typical person does, which is to ignore the suit!
Credit card companies and junk debt buyers are counting on you to be the typical person and not file an answer to their lawsuit. This is what a majority of people do when served with a collection lawsuit. If an answer is not timely filed to the lawsuit, a default judgment will be entered by the court. You do not want a default judgment to be entered against you. More on that subject in a minute. If you are located in the East Texas area and you get served with a collection lawsuit, you need to pick up the phone without delay and give me a call. Bankruptcy might be the solution, but if not, the alternative is not to ignore the lawsuit.
I am repeatedly contacted by people who have been sued in the past and a default judgment has been entered against them. At times these default judgments are for substantial sums of money and the judgment creditor has garnished a bank account, attempted to execute on the judgment or served the judgment debtor with written discovery to ascertain assets owned. Often the person is calling me because they are attempting to sell a piece of real estate and the judgment has been discovered by the title examiner (judgment liens are created by the judgment creditor filing an abstract of judgment in the county in which the debtor owns real estate). Just in the last year I have represented several people who are trying to recover from a default judgment that has been taken against them.
If you have been sued, don’t let this be you. Call me at 800-867-1583 and we can discuss what options are best for you!
by Mike Wallace | Dec 22, 2014 | Chapter 7
By Mike Wallace, Bankruptcy Attorney, serving clients in all of East Texas, including Lufkin, Nacogdoches, Palestine, Jacksonville and other surrounding communities
Chapter 7 bankruptcy, sometimes called liquidation bankruptcy, is generally intended for those persons who have unsecured debt and qualify for relief under the current bankruptcy law.
The term liquidation bankruptcy is for the most part a misnomer, because in the overwhelming majority of chapter 7 cases there is no property to be liquidated.
These types of cases are commonly referred to as “no asset” cases. In the unusual circumstance that a chapter 7 debtor might have property that cannot be exempted under the bankruptcy law, then an appointed trustee will liquidate that property to pay to the debtor’s creditors.
If you are in a situation that has placed you in financial distress, then please give me a call and lets talk about the possibility of a chapter 7 bankruptcy.
If you are burdened by medical bills, finance companies, payday loans, credit cards or any other debt that is keeping you awake at night, I want to talk to you about the possibility of helping with your burden.
Even if you have student loan debt, which is in most case nondischargeable, it might be all the more important to discuss bankruptcy if you have other debt coupled with the student loan debt.
Since you have choices in who you hire to represent you in a bankruptcy, I would ask that you allow me an opportunity to discuss an affordable option for your particular circumstances. I always offer a discount for seniors who are on a limited fixed income.
As always, any opinions expressed on this website are just that, opinions. So if you have a question regarding bankruptcy or debt relief, then please give me a call to discuss your individual situation. Bankruptcy, as many other areas of the law are very case or fact specific. I pride myself on giving you the answers to your questions that are based on your individual circumstances.
by Mike Wallace | Dec 22, 2014 | Chapter 7
By Mike Wallace, Bankruptcy Attorney, serving clients in all of East Texas, including Lufkin, Nacogdoches, Palestine, Jacksonville, Tyler and other surrounding communities
I have previously outlined the basics of Chapter 13 bankruptcy filing, so I am going to give an illustration that might help someone understand Chapter 7 bankruptcy.
First, Chapter 7 bankruptcy is means tested, so Debtors have to qualify to file a Chapter 7 bankruptcy based on their income level.
It should be pointed out immediately that Social Security income does not count toward a Debtor’s qualification for Chapter 7 bankruptcy.
The Internal Revenue Service has calculated certain median incomes throughout the United States based on geographical location.
If the Debtor’s median income is below that calculation, then the Debtor is qualified to file a Chapter 7 bankruptcy. If the Debtor’s income exceeds the median income, then additional calculations are made based on a means test that might still allow the Debtor to qualify to file a Chapter 7.
If business debt exceeds all of the Debtor’s personal debt, then there is an automatic qualification so to speak,
Chapter 7 bankruptcy is designed to give a Debtor a fresh start from unsecured debt such as: credit card debt; medical bills; deficiencies related to foreclosures or repossessions; payday loans; signature loans and judgments.
Often, Chapter 7 bankruptcy is referred to as “liquidation bankruptcy,” because to the extent there is property that the Debtor owns that cannot be exempted, then that property is sold by the Trustee appointed to the case and is paid to the unsecured creditors.
For the sake of this discussion and illustration, you should know that the overwhelming majority of cases are referred to as “no asset” cases. In other words, the bankruptcy law allows a Debtor in a Chapter 7 case to use exemptions that are provided for under the law to protect property from liquidation.
For example, a person’s home, vehicle, retirement accounts and personal household goods are generally protected and can be kept by the Debtor.
The advantage to Chapter 7 bankruptcy is that it is a fairly quick process, so the Debtor is allowed an opportunity to get a fresh start without having to make payments as in a Chapter 13 case.
The Debtor receives a “discharge” of all unsecured debt in a Chapter 7 case, which meas they are no longer liable for that debt. The Creditor who holds the debt cannot take any further action to collect the debt once the bankruptcy case is filed.
Certain debts, such as student loan debt, are for the most part non-dischargeable in a Chapter 7 bankruptcy. Contrary to what a lot of people believe, Chapter 7 bankruptcy generally allows a person to rebuild their credit much faster than if they did not file bankruptcy.
To the extent that a Debtor has a mortgage on a home or a loan on a vehicle, then Chapter 7 bankruptcy allows the Debtor to keep the home or vehicle if they so decide. Of course if the payments on such secured debts can no longer be afforded, then the Debtor can surrender the property and receive a discharge of that debt.
All of the above information is for illustration purposes to allow a better understanding of Chapter 7 bankruptcies. Every situation is different and there are special rules that come into play in any given Chapter 7 case. For example, income taxes owed by a Debtor might or might not be dischargeable in a Chapter 7 bankruptcy.
If you have additional questions about Chapter 7 bankruptcy or any other financial situation that you might find yourself in, then give me a call at (903) 683-2018 and we can discuss your situation at no obligation to you.
As always, any opinions expressed on this website are just that, opinions. So if you have a question regarding bankruptcy or debt relief, then please give me a call to discuss your individual situation. Bankruptcy, as many other areas of the law are very case or fact specific. I pride myself on giving you the answers to your questions that are based on your individual circumstances.
