William H. Lively, Jr

Smith County Bankruptcy Blog

Filing bankruptcy after the holidays? You are not alone

Over the holidays, many people find themselves spending more than they can afford. As a result, January leaves many Americans contemplating the possibility of bankruptcy.

According to CNBC, Americans accrued an average of $1,000 dollars in debt over the holidays this year. Data suggests this is almost $50 more per person than in the past. Many Americans say it will take them at least half of the year to pay off. However, even if these people are able to pay off their holiday shopping, many are still in overwhelming credit card debt. For many Americans, bankruptcy provides a way out.

Late credit card payments can damage personal credit

Credit card debt can be a source of difficulty and anxiety for people in Texas. Those who are dealing with financial problems might even miss payments. Ideally, for the sake of the person's credit rating, he or she should continue to make at least the minimum payments on the cards. Sometimes that isn't possible though, and so payments are missed. Failure to make credit card payments has different, increasing consequences depending on how long the payment is behind.

A payment on a credit card is considered late once it is more than 30 days past due. Credit bureaus typically categorize late payments as between 30 and 59 days, 60 and 89 days, 90 and 119 days, 120 and 149 days, 150 and 179 days or 180 days or more. When a payment is 30 days late, the credit card company will typically charge a late fee. Sometimes, these late fees can be waived if the person calls the company and explains the situation. The late payment will likely be reported to the credit bureaus though.

What property is exempt from Chapter 7 bankruptcy?

Perhaps you've held onto your grandmother's jewelry collection for the last 30 years. Or maybe you have a restored classic car collection or vacation property. Nevertheless, if you're underwater with debt, it may seem Chapter 7 bankruptcy is your only option.

Will you have to get rid of everything you own? If you have a lot of property that isn't essential to your life, you might need to get rid of some of it as a part of the Chapter 7 bankruptcy liquidation process, especially if this property could be viewed as "luxuries" and is not essential to your life. However, you may also be pleasantly surprised to discover how much of your property you can actually keep.

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William H. Lively, Jr

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William H. Lively, Jr
432 S Bonner
Tyler, TX 75702

Phone: 903-920-0008
Phone: 903-593-3001
Fax: 903-595-3715
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