Texas residents may not be familiar with a recent case from Illinois, but will no doubt be interested in the results. The couple involved is now facing up to five years in prison after admitting to fraud. They concealed nearly $112,000 from a legal settlement when they applied for bankruptcy.
The moment you file for bankruptcy, an automatic stay goes into effect. An automatic stay stops your creditors from bringing lawsuits against you (and stops current lawsuits in their tracks), including foreclosure actions. It also stops wage garnishment, repossession and other collection efforts. This means that filing for bankruptcy stops creditor harassment; once the automatic stay is in place, your creditors must stop calling you.
Everybody needs to get to work. Most people have kids to take to school, groceries to pick up, or errands to run that just cannot be done in today's world without a car. The bankruptcy code provides exemption schedules as does the Texas Property Code. Those exemption schedules provide for someone who files bankruptcy to be able to claim certain property as exempt.
Although the fact that you filed a bankruptcy is a "public record," they have not put that information in the newspapers here locally for years. Frankly, that would be some voluminous information. We understand that you are not proud of the fact that you had to turn to your debt relief options, but life happens. Death, divorce, loss of job, reduction in income, medical emergencies happen. When they do, you sometimes incur a burdensome amount of debt. Many times, people can actually afford to pay the original debt over time, but the ridiculous interest rates make it impossible to ever get back on your feet.
Many people have had to turn to relief under the Bankruptcy Code in Collin County, Texas. Chapter 7 Bankruptcy is often the chapter of bankruptcy that many debtors choose if they pass the Means Test. Chapter 7 is often the most appropriate chapter if the debtor is current on the homestead, current on the cars, and has unsecured debt that is unaffordable.
Many times bankruptcy hearings are informal. The First Meeting of Creditors is codified in section 341 of the Bankruptcy Code and is called the "341 hearing." That name is very appropriate, although the title named to that section is typically misleading. It is also known as the "First Meeting of Creditors." True, the creditors are entitled to attend that 341 meeting, but they rarely do. Secondly, there is rarely a second meeting of creditors.
Credit card debt can literally wear you out. The debt isn't so bad, but ridiculous interest rates and over the limit fees and late payment penalties can make you feel like even if you are trying your best, all of your efforts are in vain. Most people turn to the Bankruptcy Code for debt relief if a major life event has occurred which has forced them to seek their debt relief options.
Credit card debt can really weigh a strain on your life, your marriage, and your health. Filing for protection under Chapter 7 or Chapter 13 of the Bankruptcy Code can help get your life back together. Sometimes a debt settlement plan is appropriate rather than a bankruptcy. However, there is the potential for income tax liability if a settlement is completed.
When a debtor files for protection under the Bankruptcy Code, there are certain timelines and requirements that are laid out in the statutes. One, when you file there is a first meeting of creditors to be presided over by the trustee under section 341 of the Code. Typically, this meeting occurs somewhere around 45 days after the bankruptcy is filed.
Credit card debt is frustrating. You borrow some money, and start paying it back. If something strange happens, like you forgetting to pay one of your creditors and you are a couple of days late then your credit cards may raise your interest rates substantially. If you multiply the APR interest rate times the amount of the debt and divide that number by twelve then you will see the amount of monthly interest that you are being charged by your credit cards.