Page Law Firm

Free consultation for consumer bankruptcy clients

Call Us214-618-2101

Proudly serving Frisco, Texas and surrounding areas
Facebook Twitter LinkedIn
Subscribe to this list via RSS Blog posts tagged in bankruptcy protections

What Does Bankruptcy Mean for a Single Dad?Being a single father is not easy. Even though you probably have a co-parent, it may feel like you are parenting alone.  Unfortunately, it can also put a strain on your finances. You no longer have your co-parent’s income to help pay for your living expenses, and a significant percentage of your income may be going towards child support. If your co-parent is no longer in the picture, you may be solely responsible for all of your children’s expenses, as well.  When you feel like you are drowning in debt, filing for bankruptcy may be your best option for relief. As a caring father, you should also know that bankruptcy will not prevent you from being able to provide for your child.

Why You May Need Bankruptcy

Single parents face financial challenges that can make it difficult to keep up with debt payments:

  • Your responsibilities as a parent may limit the hours you can work and cause you to pass up on job opportunities that could increase your income.
  • Supporting your children leaves you with less disposable income and you may have used a credit card to pay for necessary expenses.
  • There can be unexpected child expenses, such as a medical emergency.
  • Even though you are on a tighter budget, you want your children to have the same opportunities and experiences as their friends.

Filing for bankruptcy can give you a fresh start on your unsecured debts. Depending on the type of bankruptcy you use, you could discharge your unsecured debts or create a more manageable debt repayment plan.

...

How Bankruptcy Can Help When Facing a Credit Card LawsuitCredit card companies have the right to file a lawsuit against you if you have not paid the balance you owe. They will not immediately sue you after your first missed payment but may consider it if you have not paid in several months and are uncooperative. Texas has a four-year statute of limitations on collecting unpaid debts, and credit card companies may feel pressured to take legal action before the deadline passes. There are several ways to respond to a lawsuit and protect yourself, including filing for bankruptcy. 

How a Lawsuit Works

A credit card company files a lawsuit in hopes of getting a court judgment that forces you to pay what you owe. The process starts when you are served notice of the complaint against you and a summons for a court hearing on the lawsuit. You have to respond to the summons, and failing to respond could result in the court issuing a default judgment in favor of the credit card company. With a court judgment, the credit card company could use more forceful means of debt collection, such as bank levies and liens on your property and, if the judgment is from a state other than Texas, wage garnishment. 

Your Response

There are several ways that you can prevent a court judgment against you in a credit card lawsuit, including:

...

Why Delaying Bankruptcy Can Be CostlyPeople who are heavily in debt may worry about the cost of filing for bankruptcy, but delaying an inevitable bankruptcy is often costlier. Bankruptcy is neither a sign of failure nor the ruin of your personal finances. Yet, some people let these misconceptions prevent them from filing for bankruptcy when it may be their best option. While there may be some immediate costs to bankruptcy, it is a chance for people to clear their debts and start anew. There are several reasons why waiting to file for bankruptcy can make your situation more difficult:

  1. Quality of Life: The pressure of repaying debts can affect your standard of living and personal health. Some debtors save money by forgoing necessary expenses, such as food and medical treatment. The stress can be harmful to a person’s mental and physical health. Bankruptcy protects the money you need to pay for basic living expenses and gives an eventual resolution to your stress.
  2. Risk of Litigation: You may be content to slowly repay your debts, but your creditors may not display the same patience. By filing a lawsuit against you, your creditor is seeking immediate compensation for the debts you owe through mechanisms such as attaching your bank accounts. You still have time to file for bankruptcy, but the lawsuit puts you on the defensive and requires you to act quickly.
  3. Wasted Assets: Filing for bankruptcy allows you to protect key properties through the various exemptions available. Your home, vehicle and other properties of a certain value can all be exempt from your creditors. However, people who avoid bankruptcy may choose to sell important properties to help with repayment. If they eventually file for bankruptcy, it will be too late to exempt and save properties that have already been sold.
  4. Rising Debt: Some people try to avoid bankruptcy because they believe they can get by with their own repayment plan. However, keeping up with debt payments can be difficult if you lack the financial resources. Making minimum payments may prevent immediate default, but will allow interest rates to accumulate on the debts. If a Chapter 13 bankruptcy is filed, you will be facing a larger debt that may have to be paid in full, depending on your repayment plan.

Deciding on Bankruptcy

It can be difficult to know when is the right time to file for bankruptcy. Bankruptcy is an option you should at least consider if you are feeling overwhelmed by your debts and are unsure of how to repay them. A Frisco, Texas, bankruptcy attorney at The Page Law Firm can advise you on how bankruptcy could help your financial situation. To schedule a free consultation, call 214-618-2101.

...
National Association of Consumer Bancruptcy Attorneys State Bar of Texas
Back to Top