4 Reasons Bankruptcy Can Be Denied In Texas

If an individual is facing financial difficulties and gets to the point where her or she feels like no other option is viable other than filing for bankruptcy, the last thing he or she wants to even consider is the possibility that bankruptcy could be denied.

However, circumstances do exist where a bankruptcy petition may be denied. Below are some of the most common reasons.

1. Inadequate Documents Submitted

The debtor is asked to present certain documentation to the court when a bankruptcy petition is filed. The bankruptcy trustee needs to see a complete picture of the debtor’s financial situation before deciding how to go forward.

This documentation can include paycheck stubs, statements from banks or other financial situations, mortgage documentation, car loan documentation or lease documents, tax returns from previous years.

It is important that all of this documentation, including anything that may be requested on top of the basic information. If the debtor fails to require the correct documentation, provides incorrect or insufficient information, the bankruptcy petition may be denied.

2. Filing Too Soon

Timing is everything when it comes to bankruptcy, as well. If the debtor has filed bankruptcy previously and files again, if it is done too quickly under statutory guidelines it is possible that the petition could be denied.

If the debtor filed Chapter 7, he or she has to wait at least eight years from the date that discharge was received before Chapter 7 bankruptcy can be filed again.

If he or she wants to file Chapter 13 bankruptcy after receiving Chapter 7 bankruptcy, at least four years has to pass before Chapter 13 can be filed.

Under Chapter 13 bankruptcy, if the debts were discharged in a previous Chapter 13 case, the debtor cannot receive a subsequent discharge in a later Chapter 13 unless it is filed at least two years from the date the first case was filed.

If the debtor received a discharge in a previous Chapter 13 proceeding, he or she must wait at least six years from the date the Chapter 13 was filed before he or she can file for and receive a discharge in a later Chapter 7 bankruptcy case.

3. Fraud Or Concealing Information

A bankruptcy petition can be denied if the debtor is using the bankruptcy proceed to perpetuate some form of fraud. Many times, debtors do use these proceedings to try to avoid a debt unfairly.

When the bankruptcy petition is filed, the trustee also asks the debtor to testify regarding his or her case and financial situation. The trustee will ask for specific information, and it is extremely important that this information must be complete and 100 percent accurate.

If the trustee later finds out that the trustee failed to disclose important information or intentionally withheld, the petition can be denied. Also, the petition could be denied if the debtor tries to hide money in other accounts or fails to list a creditor who ends up having a valid claim.

If the debtor ended up not providing this information unintentionally, this error can be explained or a petition could be filed later with the inadvertently left-out information included.

4. Not Taking the Required Instructional Course

The United States Bankruptcy Code requires that two instructional courses must be taken before bankruptcy can be finalized. These classes focus on personal financial management and aim to avoid the debtor having to file for bankruptcy in the future.

The first course is a credit counseling class that must be taken before the debtor can start the bankruptcy proceedings. The second class is a financial management course that must be taken and completed during the bankruptcy case. It must be completed before a discharge will be issued.

The fees to take these courses can range between $20 to $100, and while, yes, the bankruptcy debtor may find these fees hard to pay given his or her financial situation, the cost of having to go through the entire bankruptcy proceedings again can be even more cost-prohibitive.

These classes may seem minor in the grand scheme of things, but not receiving a bankruptcy discharge because the debtor failed to take a simple course is not worth it in the end.

Contact Collins & Arnove Today

Facing a bankruptcy can be an intimidating process. We are here to walk you through it every step of the way. If you need assistance, Collins & Arnove can help you. To learn more, call 972-435-9738 for your free consultation today.

Understanding The Role Of The Bankruptcy Trustee

When it comes to bankruptcy proceedings, many different individuals are involved in the process: the debtor, the creditor, often the debt collector, and, of course, the bankruptcy trustee.

However, many individuals fail to understand the role of the bankruptcy trustee. Below is some information to explain what role the trustee plays in all bankruptcy proceedings.

The Role of the Bankruptcy Estate

Before the role of the bankruptcy trustee can be understood, the bankruptcy estate must be understood, as the bankruptcy trustee maintains control over the estate. When a bankruptcy petition is filed, the “bankruptcy estate” is established.

This estate includes all of the debtor’s property and is considered separate from the actual bankruptcy debtor. The bankruptcy trustee also oversees the estate and ensures that property and debts are handled appropriately

The Role Of The Bankruptcy Trustee

What the bankruptcy trustee does depends largely on the type of bankruptcy being pursued. The role also depends also varies depending on the circumstances of the debtor as well as the types of creditors involved.

Chapter 7 Bankruptcy And The Bankruptcy Trustee

Chapter 7 bankruptcy is otherwise known as the liquidation bankruptcy. All of the debtor’s property and debts are accumulated and assessed, and at the end of the proceedings, the qualified debts are liquidated.

Therefore, the primary duties and powers the bankruptcy trustee holds include:

  • Rounding up the debtor’s property;
  • Receiving and reviewing the information submitted along with the debtor’s petition for bankruptcy, as well as creditor’s claims;
  • The trustee is responsible for selling the bankruptcy’ estate property that is not otherwise connected to a secured debt;
  • He or she is responsible for challenging claims of creditors, when and if it is appropriate;
  • Once the estate property has been sold, the bankruptcy trustee distributes proceeds to applicable creditors;
  • If grounds exist, the bankruptcy trustee is in charge of objecting to a bankruptcy discharge.
  • The bankruptcy trustee also reports directly to the court on the progress of the bankruptcy, as well as any claims creditors may have.

Chapter 13 Bankruptcy And The Bankruptcy Trustee

Unlike Chapter 7 bankruptcy, Chapter 13 bankruptcy is referred to as a reorganization bankruptcy. The debtor keeps possession of the property during the bankruptcy, and the trustee works with him or her to come up with a repayment plan to handle these debts appropriate.

The duties of the trustee include the following:

  • The trustee reviews all of the information submitted by the debtor with his or her bankruptcy petition;
  • He or she also reviews all claims made by creditors, handling them appropriately;
  • The trustee reviews the debtor’s proposed repayment plan;
  • If changes are needed, he or she makes objections to the plan and makes needed changes;
  • The trustee also receives or collects payments from the debtor under the repayment plan;
  • The trustee then redistributes the payments to the creditors, as they are received.

Bankruptcy Trustee Compensation

How the bankruptcy trustee is compensated depends on the type of bankruptcy that is being filed. If the matter is a Chapter 7 bankruptcy, debts are paid off by liquidating property that is deemed nonexempt.

The trustee receives an initial payment under a flat administrative fee to oversee and review the case. This fee is normally paid from the debtor’s initial filing fee.

If the debtor requests a waiver of the fee, the trustee does not receive an administrative fee if that is approved. He or she will instead be paid from a commission from any nonexempt property sold to creditors.

If the debtor does not have any nonexempt property, he or she will only be paid via the administrative fee.

However, before the trustee can be paid at all, over the initial administrative fee, he or she is required to file an application with the court and notifying all interested parties.

Under Chapter 13 bankruptcy, since the trustee does not sell off the debtor’s property, he or she does not get a commission from selling any property.

Instead, he or she is allowed a percentage of the monthly payment plan as compensation. The percentage he or she is allowed depends on the trustee’s operating budget.

Contact Collins & Arnove Today

Facing a bankruptcy can be an intimidating process. We are here to walk you through it every step of the way. If you need assistance, Collins & Arnove can help you. To learn more, call 972-435-9738 for your free consultation today.

Considering Chapter 13 Bankruptcy? 3 Important Benefits to Know

Chapter 13 Bankruptcy Plano TXIf you have recently lost a main source of income due to unemployment, injury, or a medical condition or you have become overwhelmed by debt and expenses, filing chapter 13 bankruptcy may be right for you. Chapter 7 liquidates your debts, which is extremely helpful for most people, but not everyone will qualify for this form of bankruptcy. Thankfully, there is an alternative. Here are a few benefits of filing chapter 13.

Shorter Effect on Credit

Filing bankruptcy will negatively affect your credit. When filing chapter 7 to liquidate your debts, the bankruptcy will remain on your credit report for up to 10 years.

Since you will be making payments on your debt after filing chapter 13, the bankruptcy will affect your credit report for around seven years. The impact on your credit report and overall credit score will be less when filing chapter 13.

Avoiding Foreclosure

You may have an enormous amount of debt, which can include credit cards, loans, and medical bills in addition to a house. In most cases, chapter 7 will liquidate these debts, but it will not stop a foreclosure from happening if you are behind on your mortgage payments.

Filing chapter 13 bankruptcy will help you avoid foreclosure, allowing you to keep your home because you will continue making monthly mortgage payments through a debt restructuring program.

By paying off your debt with more affordable payments, you will be able to catch up on late and missing mortgage payments, allowing you to remain in your home without fear or worry.

Lower Payments/Less Stress

Financial worries cause stress and anxiety disorders and depression. While shocking for many to learn, severe financial struggles can even develop into thoughts and attempts at suicide. Easing this emotional distress is possible through bankruptcy.

The restructuring of debts that occurs in chapter 13 reduces your monthly payments and total payoffs, which also benefits your physical and emotional well-being.

Making small monthly payments to pay off smaller balances through the debt restructuring program of chapter 13 will ease the financial burden that affects your mood and stress or anxiety level.

Lastly, the ability to make one payment to a bankruptcy trustee is also helpful for easing the stress of paying multiple creditors month-to-month.

Filing bankruptcy is not for everyone, but an attorney can help you determine if it is right for you and your finances. To learn more about chapter 13 bankruptcy in the Plano, TX area, contact Collins & Arnove today at 972-516-4255.

Collins & Arnove | Chapter 13 Bankruptcy Plano TX | 972-516-4255

Understanding The Automatic Stay

When it comes to filing for bankruptcy, one of the benefits for potential filers is the automatic stay.

If someone gets to the point where the debtor feels he or she has no choice but to file for bankruptcy, it is a safe assumption that he or she is at the point where relief from financial stress is needed.

Thus, enters the automatic stay. However, not everyone understands what the automatic stay entails and how it plays into the bankruptcy process.

What Is An Automatic Stay

When bankruptcy is filed, an automatic stay is issued. This “stay” puts a halt to collection activities against the debtor facing bankruptcy. It begins at the start of the case and lasts until the case is closed, either successfully or unsuccessfully.

The automatic stay is immediate, meaning it happens as soon as the case is filed. However, it is then up to the bankruptcy trustee to notify creditors of the case, which is not immediate. This means that the creditors will be subject to the automatic stay before they even get notice of the case.

It keeps the creditors from pursuing collection attempts on the debtor and does a number of other actions, described below.

1.) Prevent Foreclosure: The automatic stay puts a halt to any foreclosure proceedings that are currently ongoing. This happens, even if the debtor waits until the last minute to file for bankruptcy after the foreclosure proceedings have begun.

In the event a Chapter 13 bankruptcy is being filed, late mortgage payments are lumped into a three to five-year repayment plan created with the help of a bankruptcy trustee. This allowance lets the debtor stay in the home while the proceedings are ongoing.

2.) Halt Eviction Proceedings: If the debtor is also facing eviction proceedings for not paying rent, the automatic stay puts a stop to that process, as well. This stay can alleviate a lot of stress on the debtor by keeping a roof over his or her head.

However, if the judgment on eviction proceedings has already happened before bankruptcy was filed, the landlord could still file a motion to lift the automatic stay.

3.) Stop Vehicle Repossession: The automatic stay can also put a halt to any vehicle repossession process. Without a car, how can the debtor keep going to work on a daily basis to get back on his or her feet?

This benefit is huge when it comes to filing for bankruptcy. If Chapter 13 is being filed, the stay can also allow the debtor to keep the car in the end upon the close of the three to five-year repayment plan.

4.) Stop Wage Garnishments: An automatic stay also puts a halt to wage garnishment proceedings with a few exceptions. These exceptions include ones where matter of public policy prevent them from being stopped, such as child support or alimony payments.

A creditor does have the right to file a motion to lift the stay but they must show that good reasons exist to justify this lifting of the stay.

5.) End Collection Harassment: Debt collectors can be harassing. One of the biggest causes for stress on debtors is the constant phone calls and letters from debt collectors.

The stay also puts a stop to these actions, and if a creditor violates the stay, that company faces penalties or fines.

Limitations To The Automatic Stay

If this is not the debtor’s first bankruptcy, he or she may face some limitations to the automatic stay. If repeat filings have occurred, the stay may only last for 30 days.

In addition, creditors do have the right to file a request to lift the stay, and if valid and compelling reasons exist, they may be successful. However, if the debtor is a first-time filer, it is unlikely the stay will be lifted.

What Happens If the Stay Is Violated?

If the creditor violates the stay, he or she will face certain consequences, which can include fines and sanctions.

In addition, if a bankruptcy trustee is notified repeatedly of violations from the same lender, and this is an a repeat occurrence with many debtors, the trustee can go as far as sending the matter to the United States Department of Justice for investigation.

Contact Us Today!

Facing a bankruptcy can be an intimidating process. We are here to walk you through it every step of the way. If you need assistance, Collins & Arnove can help you. To learn more, and schedule your free consultation, call 972-435-9738 today.

Five Real Benefits of Filing Chapter 7 Bankruptcy to Clear Debt

Chapter 7 Bankruptcy Dallas TXWhether you have lost a primary source of income or accrued an overwhelming amount of debt, filing chapter 7 bankruptcy may be the right decision for you and your financial future. Unfortunately, most people do not have a real understanding of the bankruptcy process and benefits. Here are a few practical benefits that you will see after filing chapter 7.

Clean Slate

First and foremost, it is essential to know that chapter 7 gives you a clean slate. This liquidation type of bankruptcy wipes out all of your debt, allowing you to make a fresh start when it comes to your finances.

While chapter 7 bankruptcy will discharge most of your debts, you may still be responsible for paying certain expenses, such as student loans, child support, and alimony. Your attorney will help you create a budget that will allow you to continue paying these expenses in a timely and efficient manner.

Property Protection

You will be able to keep all income and property that you acquire after filing since this property and income will not be part of the bankruptcy agreement. All income and property acquired after 180 days of filing will be protected.

No Limits

If you file chapter 13, there are limits to the amount of debt that can be discharged. When you file chapter 7, there are no limits on the total amounts of discharged debt as long as you pass the means test.

No Repayments

Filing chapter 7 bankruptcy will liquidate your debts, meaning you will not have to make payments towards the total debt. This process is different from chapter 13 where you will be responsible for making payments each month to pay off balances. After filing chapter 7, you are no longer responsible for making debt payments.

Effective and Fast

You may be surprised to learn how quickly debts are discharged once you start the process of filing chapter 7.

In most cases, your debts will be discharged within three months of filing. The courts will discharge your debts effectively and efficiently, reducing harassing calls and collections from creditors and decreasing any stress and anxiety you may be experiencing.

If you are searching for an effective and fast way to manage your financial future, chapter 7 might be the right solution for you.

Consulting an attorney should be your first step if you are considering bankruptcy. To learn more about the benefits of chapter 7 bankruptcy, contact Collins & Arnove in the Dallas, TX area at 972-516-4255 today.

Collins & Arnove | Chapter 7 Bankruptcy Dallas TX | 972-516-4255

5 Answers To Chapter 7 Bankruptcy & Wage Garnishment Questions

By the time an individual faces Chapter 7 bankruptcy, he or she may have a couple of judgments against him or her for previous unpaid debts.

In fact, many of these judgments may have already gotten to the point where wages are being garnished from the debtor’s paycheck.

What happens to these garnishments once Chapter 7 bankruptcy is filed?

1. What Is Chapter 7 Bankruptcy?

Two different types of bankruptcy are commonly used by debtors facing tough financial situations. Chapter 13 bankruptcy involves a reorganization of the client’s debt, resulting in a payment plan and eventual liquidation of whatever debts are remaining at the end of the payment period.

Chapter 7 bankruptcy is referred to as “liquidation” bankruptcy. When bankruptcy is filed, an automatic stay is put in place. This automatic stay puts a stop to any legal proceedings or debt collections that are current against the debtor.

At this point, all creditors will receive notice of the filing and the automatic stay and will be given a chance to file a claim with the bankruptcy trustee. The trustee works with creditors on their claims, and any debts that are not exempt or unsecured are liquidated.

2. What Is Wage Garnishment?

Wage garnishment is when money to collect upon a judgment is taken out of an individual’s paycheck. Wages cannot be garnished without a court order authorizing the garnishment.

One of the most typical types of wage garnishments involve child support. However, student loans and taxes are also traditionally enforced through a wage garnishment or income withholding order. Other debts can be collected in this manner, as well, so long as the order is signed and authorized.

After the judgement is obtained, it is then sent to the debtor’s employer and the judgment will then automatically be taken out of the person’s paycheck in the appropriate amount.

Once the debt is satisfied, the withholding ends. Limits do exist as to how much can be taken from the employee’s paycheck so that the entire check is not depleted because of a judgment.

3. What Is an Automatic Stay and How Does It Affect a Bankruptcy?

The automatic stay is one of the benefits of filing for bankruptcy. By the time the debtor gets to filing, he or she is probably at his or her wit’s end in terms of financial stress. This stay is supposed to relieve part of that stress.

The automatic stay keeps the creditors from taking debt collection proceedings against the debtor while the bankruptcy is pending. Since wage garnishments come from collection proceedings, these garnishments are also halted when the automatic stay is issued.

However, not all wage garnishments can be stopped. Child support is the most important of these garnishments that are not allowed to be halted.

Creditors can petition the court to have the stay lifted, but the circumstances for these allowances are limited.

Unless the garnishment comes from a matter where public policy is an issue, such as child support, the garnishment will normally be halted with the filing of a bankruptcy petition.

4. What About The Notice Of The Automatic Stay?

Who has the responsibility of notifying the employer of the automatic stay when it is issued? Will it be the debtor or the bankruptcy court who will inform the company? Normally the bankruptcy court notifies the employer of the automatic stay.

The bankruptcy trustee gets all of the information on who the creditors are, as well as their contact information, and they use this information to provide notice.

5. What Happens To The Wage Garnishment Once The Case Is Closed?

It can be assumed that the automatic stay goes away once the case goes away. A lot hinges on why the income withholding order was issued and what debt is associated with it.

If the wage garnishment came along with a normal collections action and this creditor was included on the debtor’s list supplied to the bankruptcy trustee, the wage garnishment will go away when the debt is liquidation.

However, if the bankruptcy case ends early and unsuccessfully, then the wage garnishment goes back into effect. If the case is closed successfully and the debt is liquidated, so is the garnishment order.

Contact Collins & Arnove Bankruptcy Attorneys Today

Facing a bankruptcy can be an intimidating process. We are here to walk you through it every step of the way. If you need assistance, Collins & Arnove can help you. Call 972-435-9738 today for your free consultation.

The Complete Process of Filing Chapter 13 Bankruptcy

Chapter 13 Bankruptcy Dallas TXConsulting an attorney is a great first step if you are considering filing chapter 13 bankruptcy to gain back control of your financial health. Unfortunately, you may not realize there are other steps in the process once you decide to file. Your attorney’s help will guide you through the legal process of filing chapter 13.

Credit Counseling

Once you decide to file, you will need to enroll in a credit counseling course. The course must be completed at least six months before filing bankruptcy.

While it is required, the credit counseling class will also be helpful in teaching you the importance of budgeting and how to use credit to your advantage.

Proposal

Once you complete the counseling course, you and your attorney will work together to design a repayment plan. This plan will include the total amount of debt you will pay back over a period of 5 to 7 years. The proposal will also include your monthly payment, which a bankruptcy trustee will disperse to creditors.

Filing

Once the proposal is in place, your attorney will file the chapter 13 bankruptcy petition along with your recent tax returns. The court system will appoint a trustee to administer your case.

The trustee will review your case to ensure you have met all laws and requirements.

Automatic Stay

If you have met all the requirements, your trustee will notify your creditors about your bankruptcy filing, and an automatic stay will then go into effect.

The automatic stay prevents your creditors from collecting. Also, interest and late fees will stop once the automatic stay is in effect.

341 Meeting

The meeting of creditors, which is also known as the 341 meeting, will occur next. This session allows you, your trustee, and creditors to discuss the payment arrangements that will happen once the bankruptcy is confirmed.

Confirmation Hearing

Your attorney will be obligated to attend a confirmation hearing. The hearing is where you and your attorney will learn a final decision on your bankruptcy. Once the plan is confirmed, your bankruptcy will be in place.

The hearing will also be the start of your repayment plan. Making your monthly payments to your trustee on time is essential. If you default on payments according to the bankruptcy plan, legal action will be taken by the creditors and the court system.

You should understand the entire process of filing bankruptcy. To learn more about filing chapter 13 bankruptcy, contact Collins & Arnove in the Dallas, TX area at 972-516-4255.

Collins & Arnove | Chapter 13 Bankruptcy Dallas TX | 972-516-4255

The Complete Process of Filing Chapter 7 Bankruptcy

Chapter 7 Bankruptcy Wylie TXIf you have recently lost income or acquired an excessive amount of unmanageable debt, filing chapter 7 bankruptcy may be the right decision for your needs. Understanding the complete legal process will ensure your bankruptcy proceedings are finalized smoothly and efficiently.

Counseling

Credit counseling is mandatory, so you must undergo these counseling sessions before you can file bankruptcy. During these classes, you will learn how to manage your income and smartly use debt.

After taking the course, you will receive a completion certificate. Then, you will be ready to begin the filing process.

File Forms

Your attorney will help you fill out all the necessary forms to file bankruptcy. You will be required to complete a means test, showing the courts you do not have the actual means to pay your debts. You will also have to show proof of your debts and what income you have coming into the household.

Property exemptions are also filed during this time.

Once all forms are filed, an automatic stay goes into place. The stay stops collectors and creditors from contacting you.

A trustee will be assigned to review all of your forms and handle the rest of your bankruptcy case.

Meeting of Creditors

A meeting of creditors is held once all your forms are filed. During this meeting, you will answer questions under oath your creditors have regarding your income and inability to pay the debts.

Although short and direct, the meeting of creditors is an imperative part of your chapter 7 bankruptcy.

Confirmation

After all files are formed and questions have been answered, the courts will decide on whether or not to confirm your bankruptcy. If you can pass the means test and your income shows you are not able to pay the debts through a repayment program, the courts will confirm the chapter 7.

Once confirmed, the non-exempt property may be seized and sold to pay creditors. Secured debts, which are backed by collateral, must be paid as agreed.

Financial Management

After filing and before your bankruptcy is discharged, you will be required to take a financial management course. As the name suggests, the course teaches you how to manage your finances to prevent further distress during and after your bankruptcy.

Once complete, you will need to provide the courts with a Certification About a Financial Management Course form.

Discharge

The final discharge paperwork will be sent to you within 3 to 6 months after you first begin filing. The bankruptcy discharge will only be sent if you have completed the above steps.

It is important to note that bankruptcy is not a quick fix. The legal process is lengthy. To learn more about the process of filing chapter 7 bankruptcy in the Wylie, TX, area, contact Collins & Arnove today at 972-516-4255.

Collins & Arnove | Chapter 7 Bankruptcy Wylie TX | 972-516-4255

The Dangers Of Using Credit Cards To Pay Other Credit Cards

Being in debt can feel like drowning. Just when the debtor thinks that he or she is ahead, something else happens to make the situation even worse. Many feel trapped and feel like they have to use credit card debt to continue making basic, minimum payments.

Some even try to resort to using credit cards to pay off other credit cards. However, is this a good idea? What are the consequences that could possibly result from taking this route?

Can Credit Cards Be Used To Pay Other Credit Cards?

The answer to this question is unfortunately, no. Most credit card companies will not let debtors use credit cards to pay their credit card bills directly.

The reason for this is if the card issuer accepts credit card for direct payment, that card issuer would then need to pay the merchant fee from the other card, which can be two to three percent of the payment amount.

What does this mean? Essentially, the card company would not be getting full payment from you. They get the raw end of the deal.

They allow for payment through a debit card, which can often seem like the same thing as a credit card, but the two are actually quite distinct. So, what does one do?

Option One: Request A Cash Advance

If the debtor has enough available credit, he or she should be able to use the credit card to request a cash advance. That money could then be used to pay another credit card bill. Cash advances can be made at a bank or credit union or at an ATM, so long as the card owner has a PIN for the card.

However, the downside to this option is the interest rate that comes with it. Interest rates on cash advances tend to be higher than normal purchases, and interest accrues right away. Therefore, if the debtor pays off the cash advance by the due date, he or she will still have to pay interest, as well.

Option Two: Use Credit Card For Everyday Spending

Another option is also known as “robbing Peter to pay Paul.” If the debtor has little cash flow to pay everyday expenses, he or she could use credit cards for everyday spending to allow for the debtor to accumulate enough cash to pay the credit card bill.

This option should only be used in a short-term situation, however. Debt can add up, and if the credit card is being used daily, the debtor can end up with much more than he or she bargained for before starting this option.

Option Three: Transfer Your Balance

Many credit card companies will occasionally offer a balance transfer deal which allows the card user to pay down or pay off another credit card. Companies will send convenience checks in the mail for this purpose.

The card owner can take one of these checks and use them to make a payment on another card. They cannot be used on the same account. The check can also be deposited into a checking account and the funds can be used to make a payment.

If the debtor happens to have a good credit score, he or she may be eligible for a low-rate balance transfer. These offers charge fees on the amount transfer, but the interest on the balance transfer is low. This option is often the best one if a low rate can be found.

Be Careful

However, before a debtor resorts to any of the previously-mentioned options, he or she should carefully consider options available. If low cash flow is a short-term situation, these options can be temporary fixes.

But if the situation has gotten out of hand, bankruptcy may be an inevitable conclusion. All the debtor may be doing is digging himself into a deeper hole.

In addition, moving debt around does not help credit scores in the long term. The amount of debt is what counts. A bankruptcy attorney can best assist you in determining what would be the best option for the debtor’s specific situation.

If bankruptcy is what truly needs to happen, this individual can assist the debtor in determining what needs to happen before bankruptcy can be filed and what options are available.

Contact Collins & Arnove Today

Facing a bankruptcy can be an intimidating process. We are here to walk you through it every step of the way. If you need assistance, Collins & Arnove can help you. To learn more, call 972-435-9738 for a free consultation.

4 Secrets of Bankruptcy That Creditors Won’t Tell You About

Bankruptcy Frisco TXIf you were to talk to a creditor, they would likely discourage you from pursuing bankruptcy in Frisco, TX. Creditors can be aggressive and often try to discourage hard working people to collect on debts. Make sure you have all the facts so you can make the best decision for your situation. Here are four secrets of bankruptcy that creditors won’t tell you about:

  • Bankruptcy is the most effective way to eliminate overwhelming debt
  • You won’t always lose your property
  • Bankruptcy laws aren’t as restricting as you think
  • You can rebuild your credit

Get the whole truth about filing for bankruptcy with the help of the attorneys at Collins & Arnove. Call us today to schedule a consultation at (972)516-4255 or visit us online at http://www.northtexasbankruptcy.com/.

Collins & Arnove | Bankruptcy Frisco TX | 972-0516-4255

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