William H. Lively, Jr

Smith County Bankruptcy Blog

Refinancing could be possible after a bankruptcy filing

Having the lowest possible housing costs may help Texas homeowners who recently filed for bankruptcy keep their finances under control. Although it might have been impossible to refinance before the bankruptcy, lenders often offer refinancing options to those who have either discharged their debts through Chapter 7 or reorganized them through Chapter 13.

The length of time between filing and being able to qualify for a new loan depends on the type of mortgage product a homeowner needs. For example, in order to refinance an FHA or VA loan, homeowners only need to wait two years after the discharge of a Chapter 7 bankruptcy. Homeowners who file for Chapter 13 bankruptcy protection have to make 12 payments in order to qualify for an FHA loan or wait one year from the filing date to apply for a new VA loan.

Avoiding bankruptcy after accumulating medical debt

According to Bernie Sanders, roughly 500,000 people have gone bankrupt because of medical debt. This figure is based on a study conducted in 2019 that analyzed 910 bankruptcy cases between 2013 and 2016. It revealed that 65.5% of those bankruptcies were caused by medical debts. However, researchers are unsure as to whether the debt itself is to blame for Texas residents and others filing for bankruptcy. Instead, it may be the lost income after experiencing an injury that leads to financial distress.

Another 2019 study found that over 137 million Americans had experienced a financial hardship because of medical debt. While medical debts may be difficult to deal with, there are ways to potentially avoid going bankrupt. For example, individuals are encouraged to build an emergency fund to help pay for unexpected medical and other expenses. This fund should be able to cover a person's living expenses for up to six months.

Determining exempt property for a Chapter 13 bankruptcy

Some Texas residents who are overwhelmed by their financial obligations may wonder whether they should file for a Chapter 7 or Chapter 13 bankruptcy. A Chapter 7 bankruptcy involves liquidating non-exempt assets while in a Chapter 13 bankruptcy, a person creates a payment plan to repay creditors over a period of three to five years. This allows the person to keep some assets.

A person who is filing for a Chapter 13 bankruptcy needs to have the income to repay the debt. It is necessary to determine what property owned by the debtor is considered exempt and what property is non-exempt. In order to create a repayment plan, the value of non-exempt property is added up as a minimum of what must be offered as repayment.

Can you recover from bankruptcy?

One of the most common misconceptions about bankruptcy is that you can never recover. Yes, it gets rid of your debt, but then you have that bankruptcy on your record. You can never shake it, you can never really get a fresh start. It feels like giving up on your financial future.

This outlook may be common, but it is very misguided. The truth is that bankruptcy is a fresh start. It can be a positive for your financial future. You can not only recover from it, but you can thrive after bankruptcy. It's time to put this myth to rest.

Who carries credit card debt?

Many people living in Texas and around the country carry a balance on their credit cards. Contrary to public perception of the types of people who have credit card debt, many of these individuals are older, in their 40s and 50s, and may be reasonably well-off.

Many people think of credit card debt as a problem that younger people have. This is due to the perception that younger people may misuse credit cards or that people in their 20s and 30s are more likely to have student loan debt, compromising available cash flow.

Managing medical debt

People in Texas who do not have health insurance may want to look into it. Health insurance might be out of reach for some people, but those who can afford it but think they do not need it because they are healthy should consider that they could be injured or become suddenly ill. Medical debt can mount quickly and result in serious financial problems or even bankruptcy.

Some people put their medical expenses on a credit card, but this can be a mistake as well. Carrying long-term debt on a credit card can be expensive because the interest grows over time. If it is necessary to use the card, people with good credit may want to shop around for a zero percent interest card that offers a balance transfer. People who have already accumulated medical debt on a credit card should focus on strategies for paying it down. These strategies could include earning more money at a part-time job. Furthermore, since interest is calculated based on the average daily balance, it may help to make one payment earlier in the month and one later.

Medical bills a hardship to 137 million Americans

Overwhelming medical bills are causing people in Texas and nationwide to burn through their retirement savings and rack up massive debts, according to a new report by TD Ameritrade. In fact, the financial services firm found that 137 million Americans have faced financial hardship from medical expenses in the past 12 months.

The report found that medical debt is the number one reason Americans of all ages contemplate cashing in their retirement accounts. In addition, another recent study found that over 66% of all personal bankruptcy filings in the U.S. are linked to high medical bills. Many of these situations occur when people lose their jobs and have trouble keeping up their COBRA payments, causing them to also lose their health insurance. As a result, when a medical emergency strikes, they are on the hook for staggering amounts of money.

Filing for bankruptcy after turning 55

Many people living in Texas struggle with debt, and this includes those aged 55 and over. In fact, there has been an increase in older Americans filing for bankruptcy in recent years.

In many cases, medical bills are the driving issue behind bankruptcy. As people age, their medical needs can become more complex. Even individuals with insurance coverage may find themselves with tens of thousands of dollars in health care bills. In addition, health problems can make it difficult for people to work and may even force some into early retirement.

What are the 2 primary bankruptcy chapters for consumers?

Having financial difficulties is often emotionally draining. When you have more debt than you think you can reasonably handle, you should look into the possibility of filing for bankruptcy. This enables you to take legal action that will help you to get your money situation back on track.

You must consider the different types of bankruptcies that are possible for consumers. There are two primary chapters that individuals use – 7 and 13. These are two distinctly different options, so you have to find out which one meets your needs.

Creditors may face limitations as debts age

Debtors in Texas and throughout the country may dread the thought of being contacted by a creditor or debt collector. However, in some cases, a creditor or debt collector may be barred from taking any action to recoup an unpaid credit card or car loan balance. Generally speaking, if a debt is a decade old, an individual won't have to pay it back. Most states impose a statute of limitations on collection activities of either four or six years.

However, the statute of limitations may restart if an individual makes a payment on an old debt. It is also possible that a debt collector may only be barred from filing a lawsuit on a debt that is older than the statute of limitations in the state. This may mean that a debtor could receive letters or phone calls from agencies trying to get as much of a past due balance as possible.

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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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