William H. Lively, Jr

chapter 13 bankruptcy Archives

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.

Dealing with a debt collection lawsuit

People in Texas may be deeply concerned about what to do if they receive a letter from a debt collector threatening a lawsuit. Their concerns may escalate if they learn that a case has been filed against them. This situation adds stress to the lives of people who are already struggling to pay their bills and facing calls from collection agencies. Over 70 million people across the country have dealt with collectors, and a full one-fourth of those felt threatened during their dealings.

Many Americans do not realize they are in debt

In Texas and across the United States, 20% of Americans do not know whether they owe money on their credit cards, and 30% have no knowledge about their credit line interest rates. A current U.S. News & World Report survey also shows that 24% of Americans have debts equaling more than $10,000. Furthermore, 25% of the survey participants indicate they have revolving balances as high as $2,000 on their credit card accounts. In addition, 16% of the participants do not know how much money they owe on their credit cards.

Medical debts may hurt credit scores

A study conducted by Consumer Reports magazine found that 30 percent of Americans have at least $500 in outstanding medical bills. People in Texas who are struggling to pay medical debts might see their credit scores negatively impacted. Medical debt is handled differently than other outstanding debts when it comes to a person's credit score. It is generally reported to credit agencies later than other debts because the healthcare provider does not do the reporting directly.

Credit impact of bankruptcy lessens with time

Many Texas consumers face seemingly insurmountable debt.. They may have credit card bills with balances that got out of control, or they may have found an unexpected illness saddling them with medical bills. They struggle to pay their bills each month and face creditor calls, late fees and high interest rates. While personal bankruptcy could present a way forward out of this situation, many people are concerned about the effects of bankruptcy on a credit score. Of course, a bankruptcy filing is a serious negative entry on a credit report and will affect a person's ability to access new credit.

American consumer debt continues to rise

People in Texas and across the country owe an ever-increasing amount of debt. In February, consumer credit rose less than expected, but still grew by $15.2 billion. Outstanding debt had been predicted to rise by $17.5 billion in February, according to the Federal Reserve. This increase marks a 4.5 percent growth. Every month, the Fed tracks the amount of debt Americans owe. It grew by a smaller amount than it did in January, when outstanding credit obligations grew by 5.2 percent. However, it was larger than the December 2018 growth, which was a 4.2 percent increase.

Out-of-network medical bills

Some hospital patients in Texas may find themselves unpleasantly surprised when they receive their medical bills. In some cases, certain treatments or services are not eligible for in-network insurance coverage. This can mean that some patients get hospital bills that they cannot afford to pay.

Many people face ongoing credit card debt

Many Texans are struggling with significant amounts of credit card debt that they find it difficult to repay. While some people are able to pay off their credit card bills each month and avoid carrying a balance, those who do carry a balance often extend it out over a year or more. According to one report, 56 percent of people who carry balances on their credit cards maintain them for more than a year. Around 23 percent have remained in debt for three years or more while 14 percent have carried their debt for five years or more.

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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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