Recent Blog Posts

Protection with Teeth

Majed — Fri, 16 Dec 2011 22:50:00 GMT

Creditors attempting to collect on debt that has been wiped away by a bankruptcy discharge face legal consequences within and outside of bankruptcy court. By law, a creditor is not allowed to collect on a debt that no longer exists legally. If the creditor does, the debtor has options. One is that he/she may file a motion with the court asking that the creditor be enjoined from collection activities. Additionally, the Fair Debt Collection Practices Act outlines clear remedies for debtors who find themselves in this predicament. Remedies include injunctions, fines and sometimes even payment from the creditors.

You do not have to be a victim. The federal government has laws that protect consumers from salacious debt collection practices. Consult the Fears | Nachawati Law Firm today to find out your rights.

Chapter 13

Majed — Wed, 14 Dec 2011 22:45:00 GMT

The two most common forms of bankruptcy filed by individuals are Chapter 7, which is a liquidation and Chapter 13, which is an agreement entered into that allows creditors to be repaid at least a portion of debt owed. If you do not qualify for Chapter 7 under the means test, the other option is to file for Chapter 13. Some benefits of filing Chapter 13 over Chapter 7 are that you can keep your home (and often times modify your mortgage terms), modify the payment for other secured debt (such as an auto loan, furniture or electronics), and protect the credit of co-signors.

Chapter 13 may be a viable option to help you off to a fresh financial start. The Fears | Nachawati Law Firm is experienced with Chapter 13 repayment plans and is qualified to handle your case.

Bankruptcy Could Improve Your Credit

Majed — Mon, 12 Dec 2011 22:45:00 GMT

A typical debtor owes money to various creditors and is constantly paying bills late, leading to late fees and oftentimes collection status and repossession. This constant negative reporting to your credit lowers your score, as over half of your FICO score is made up of whether you pay your bills on time and how much debt you are actually use it. Bankruptcy can assist a serious debtor over time, even with the bankruptcy reported on his/her credit. Firstly, your legal obligation to pay the debt is absolved once you receive a discharge. This means that instead of juggling your current bills and old debt, you are now free to focus your earnings on keeping your present bills current. Secondly, the amount of debt you have automatically decreases because you are no longer legally responsible for that debt.

Bankruptcy is a way to turn a negative into a positive situation. If you are serious and focused on achieving your financial goals, it can help you turn things around. The Fears | Nachawati Law Firm is here to help earnest debtors like you.

Inheritance and Bankruptcy

Majed — Fri, 09 Dec 2011 22:45:00 GMT

Possibly. The bankruptcy code stipulates that an inheritance bestowed upon a debtor within 180 days of a bankruptcy filing will become the property of the bankruptcy estate. The clock starts on the date of death of bequeather. Additionally, in a Chapter 13 the inheritance is factored into the creditor payments but not automatically distributed out. Conversely, in a Chapter 7 an inheritance received within the 180 day window is a non-exempt part of the estate and could be distributed at the trustee’s discretion.

If you have recently received an inheritance, or are expecting one, it is imperative that you contact the Fears | Nachawati Law Firm with your bankruptcy concerns.

Chapter 7 Discharge

Majed — Wed, 07 Dec 2011 22:45:00 GMT

For a debtor filing for Chapter 7 bankruptcy, obtaining a discharge is like the Holy Grail. It is the ultimate goal and purpose for filing for bankruptcy liquidation - to be legally absolved from your obligation to a creditor. Typically, there are several months between filing bankruptcy and obtaining a discharge. In the meantime, creditors are prohibited from debt collection. Life continues as usual, but without the harassment and stress of constant debt collection attempts.

Many Americans could benefit from filing for Chapter 7 bankruptcy, but have questions. Experienced counsel is imperative to a smooth bankruptcy process. The Fears | Nachawati Law Firm has the knowledge and experience to guide you through a successful bankruptcy discharge.

Should I File Chapter 13?

Majed — Mon, 05 Dec 2011 22:45:00 GMT

An individual that has the desire to pay their creditors but does not have the means, may be an ideal candidate for a Chapter 13 repayment plan. Chapter 13 was created for this debtor in mind. In this scenario, a debtor is able to pay some or all of his creditors on better repayment terms. These terms are agreed upon by the debtor, creditors, trustee and bankruptcy court, which allow both the debtor and creditors to be satisfied.

Bankruptcy is not a “get out of jail free” card for individuals who do not desire to pay their debts. Each year it allows millions of Americans to get on solid financial footing. The Fears | Nachawati Law Firm has handled numerous Chapter 13 cases and would welcome the opportunity to represent you.

Can I Keep My Car?

Majed — Fri, 02 Dec 2011 22:40:00 GMT

Yes. Filing bankruptcy in Texas does not mandate that a debtor sell his vehicle. In fact, Texas has a list of exemptions for Chapter 7 debtors that include personal property such as a primary vehicle. In fact, you will likely be able to keep your home, vehicle and the items inside your home.

The Role of the Bankruptcy Trustee

Majed — Wed, 30 Nov 2011 22:40:00 GMT

A bankruptcy trustee represents the interest of the bankruptcy estate, not the creditors or the debtor. Their job is to make sure that all activities are on the up and up and that the estate is functioning optimally. All information reported by the debtor needs to be fully disclosed and accurate. The debtor must report their full legal name, marital status and date of birth. It is also important that the debtor list all creditors, even dear old mom, all assets, and whether or not they have filed bankruptcy previously.

Bankruptcy is Small Business

Majed — Mon, 28 Nov 2011 22:40:00 GMT

Small businesses face unique challenges in the market and in bankruptcy. Many small business finances are inextricably linked with that of the business owner. This particular type of debtor may be able to save their business and personal finances by filing for a Chapter 11 reorganization for their business as opposed to individually.

Your reasons for filing bankruptcy may defer from the next small business owner. Fortunately, there are different forms of bankruptcy protection available. An experienced Fears | Nachawati Law Firm attorney can walk you through your options and help you choose the one best suited for your needs.

Black Friday Bankruptcy

Majed — Fri, 25 Nov 2011 22:40:00 GMT

Studies have shown that Black Friday, the ceremonious American "retail holiday" that begins the Christmas shopping season, has recently seen less and less turn out as Americans are re-prioritizing their money. One of the many good tools that bankruptcy offers is financial and credit management courses. These courses teach you how to manage your finances and not get in over your head, even in the face of tempting Black Friday sales.

Life Changes and Bankruptcy

Majed — Wed, 23 Nov 2011 22:40:00 GMT

Filing bankruptcy after a divorce does not miraculously make your alimony or child support disappear. Support obligations are not dischargeable in a Chapter 7 or Chapter 13 bankruptcy. So when is the best time to file for bankruptcy? It might make your case easier to file for bankruptcy before you file for divorce.

Settling your debt prior to filing for divorce can simplify your divorce proceeding, making it easier for you and your spouse to divide debt. This could also protect you from an ex filing for bankruptcy after the divorce in an attempt to leave you with debt from the marriage.

Filing for bankruptcy before filing for divorce allows you and your soon-to-be ex a fresh start from creditors and each other. Contact bankruptcy law firm Fears | Nachawati for all of your bankruptcy needs.

Closed for the Holidays?

Majed — Mon, 21 Nov 2011 22:40:00 GMT

Fortunately, the United States Bankruptcy Court of the Northern District of Texas is available 24 hours a day, save for 15 minutes every day for regular maintenance, through its electronic claims filing (ECF) system. This means that when the court is closed for holidays such as Thanksgiving and Christmas the case can continue to be updated and even filed. Petitions, motions, claims and other documents filed in the regular course of a bankruptcy proceeding may be filed online at any time. The ECF time stamps and dates the documents so there is a record of timeliness.

The attorneys at the Fears | Nachawati Law Firm are licensed in various districts within Texas and especially experienced with the Northern District and its ECF system. Contact our firm to expertly handle all of your bankruptcy needs.

When Can I File Bankruptcy?

Majed — Fri, 18 Nov 2011 15:00:00 GMT

If you have never filed bankruptcy before and have not recently moved there is no waiting period in order to file bankruptcy. If you have never filed bankruptcy before but have recently moved to Texas, you must have lived here 91 of the last 180 days before you can file for bankruptcy.

If you have previously filed for bankruptcy then there are different guidelines. If you are a repeat Chapter 7 filer you must wait 8 years before filing another. If you file Chapter 13 the second time you must wait 4 years before obtaining a Chapter 13 discharge. If you have previously filed Chapter 13 you must wait 6 years before filing Chapter 7 and 2 years to file a Chapter 13.

How Can Bankruptcy Stop My Repossession?

Majed — Wed, 16 Nov 2011 15:00:00 GMT

When a debtor files for Chapter 7 or Chapter 13, his creditors are prohibited by law to attempt to collect debts from him. This is called the automatic stay. If you are currently facing repossession of your vehicle or home and you file for bankruptcy, the loan company will be prohibited from contacting you in any debt collection attempts for a period of time. This includes phone calls, letters and physical repossession.

Will Bankruptcy Eliminate All of My Debt?

Majed — Mon, 14 Nov 2011 15:00:00 GMT

Whether or not bankruptcy will eliminate all of your debt depends on what type of debt you have. If your debt is made up of consumer credit card debt and other unsecured debt than it will likely all be eliminated. If your debt is secured debt, such as vehicle loans and home mortgages, whether or not your debt will be discharged will depend on whether or not you want to keep the secured item. If your debt is to the federal government, i.e. student loans and income tax payments, it may be dischargeable under a narrow set of circumstances.