William H. Lively, Jr

chapter 13 bankruptcy Archives

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.

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.

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.

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.

Medical marijuana and Chapter 13 bankruptcy

Cannabis has been a difficult topic for companies seeking protection in Texas and across the country. As cannabis is legalized for recreational or medical use in a growing number of states and decriminalized in many more, the number of businesses associated with cannabis has grown. At the same time, some of these companies have failed and sought protection in bankruptcy courts. Overall, these companies have had a difficult time with many courts holding that the continuing federal criminalization of marijuana means that these companies can find no relief in the bankruptcy laws.

What to know about bankruptcy

Individuals in Texas may be able to erase some or all of their debts by filing for bankruptcy. The two most common forms of bankruptcy are Chapter 7 and Chapter 13. A Chapter 7 proceeding is often referred to as a liquidation bankruptcy. To qualify for this type of protection, an individual must pass a means test that seeks to determine if he or she has the ability to repay creditors.

Choosing the right type of personal bankruptcy

Many people in Texas are struggling with insurmountable debt burdens, annoying or harassing collection calls and difficult financial circumstances. They may be looking for an exit to a new financial future that can offer significant debt relief. People who are unable to pay their debts may turn to personal bankruptcy as a solution that helps them move forward with their lives. There are two major types of personal bankruptcy: Chapter 7 and Chapter 13. The right type of bankruptcy for each person may vary depending on financial circumstances, property ownership and other issues.

Credit card debt a long-term burden

Many Texas residents struggle to make ends meet, especially if they are drowning in credit card debt. It can be all too easy for credit card obligations to add up, especially as interest rates climb. While many people intend to pay off their balances every month, it can be difficult to do so, especially if people needed to use their cards to pay for a large purchase. In other cases, people lost their jobs or faced other changes to their financial circumstances that made it much more difficult to pay their bills. Still, many financial experts advise avoiding rolling credit card debt as much 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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