Home Foreclosure.

Home foreclosure is perhaps the number one reason people need to file bankruptcy these days. If you are behind in your mortgage payments and have received notice from your mortgage company of an imminent foreclosure, or believe that you will be receiving notice in the future, you should strongly consider filing a chapter 13 bankruptcy. If you file a Chapter 13 bankruptcy before a home foreclosure occurs, the bankruptcy laws will permit you to stop the foreclosure. It will allow you to propose a plan which will catch up on the overdue mortgage payments while you pay your current mortgage payments. When you successfully complete the chapter 13 plan, you will be entirely current on your mortgage payments and willno longer be in peril of losing your home in a foreclosure.

Automobile Repossession.

If you are behind in your monthly automobile payments and are in peril of having your automobile repossessed, you should strongly consider filing a chapter 13 bankruptcy. Even if your automobile has already been repossessed, if you act quickly, you may be able to have the automobile returned to you by filing a Chapter 13 bankruptcy. It will allow you to propose a plan which will allow you to purchase your automobile through the chapter 13 bankruptcy. Often, the chapter 13 plan will permit you to purchase the vehicle for a significantly lower interest rate than on your finance agreement. Even better, if you have owned the automobile for a sufficiently long time before filing, you may be able to purchase the vehicle for a lot less than your payoff balance. When you successfully complete the chapter 13 plan, you will own your automobile free and clear.

IRS Taxes.

If you owe IRS taxes, you may consider filing a Chapter 13 bankruptcy to resolve the tax issues. If the tax debt is for liability that was incurred several years ago, it may be a general unsecured debt and you may be able to discharge the vast majority of the debt by paying pennies on the dollar. For recently incurred IRS debt which is what is known as priority unsecured debt, you will have to pay back the amount owed, but at zero percent interest and penalties. Therefore, Chapter 13 bankruptcies are an excellent means of resolving IRS debt.

Homeowners Associations.

If you are behind in your homeowners’ association assessments and it has threatened to sue you to collect, you consider filing a chapter 13 bankruptcy. The bankruptcy laws will permit you to pay the delinquent homeowner assessments back through a chapter 13. It will allow you to propose a plan which will catch up on the overdue HOA assessments. When you successfully complete the chapter 13 plan, you will be entirely current on your Homeowners Association Assessments.

Property Taxes.

If you are behind in your property taxes and the property taxing authorities have threatened to sue you, you consider filing a chapter 13 bankruptcy. The bankruptcy laws will permit you to pay the delinquent property taxes back through a chapter 13. It will allow you to propose a plan which will catch up on the overdue property taxes. When you successfully complete the chapter 13 plan, you will be entirely current on your property taxes.

Credit Card Debt.

If you have more credit card debt than you can afford to pay back, either a Chapter 7 or Chapter 13 filing will help you resolve the debt. Credit card debt is an unsecured debt. If credit card debt and other unsecured debts are your only debt issues, you should strongly consider filing a Chapter 7 bankruptcy. If you have substantial credit card debt but also have secured debt issues, like an imminent home foreclosure on a home you wish to retain, or an automobile in danger of being repossessed which you wish to retain, you should consider Chapter 13 bankruptcy. Bear in mind that while a Chapter 7 bankruptcy provides a very efficient means of discharging credit card and other unsecured debts, not everyone qualifies to file a Chapter 7. Also, Chapter 7 bankruptcy is what is known as an asset liquidation bankruptcy. In the majority of cases, most if not all of a debtor’s assets will be exempt from liquidation but it varies on a case by case basis. This is just one of the reasons why it is extremely important to consult with an experienced bankruptcy attorney before filing a bankruptcy case.

Medical Bills.

Similar to credit card debt, medical bills are unsecured debts. If you have more medical bill debt than you can afford to pay back, either a Chapter 7 or Chapter 13 filing will help you resolve the debt, depending on your circumstances. If Medical Bill Debt and other unsecured debts are your only debt issues, you should strongly consider filing a Chapter 7 bankruptcy. If you have substantial Medical Bill Debt but also have secured debt issues, like an imminent home foreclosure on a home you wish to retain, or an automobile in danger of being repossessed which you wish to retain, you should consider a Chapter 13 bankruptcy. Bear in mind that while a Chapter 7 bankruptcy provides a very efficient means of discharging Medical Bill Debt and other unsecured debts, not everyone qualifies to file a Chapter 7. Also, Chapter 7 bankruptcy is what is known as an asset liquidation bankruptcy. In the majority of cases, most if not all of a debtor’s assets will be exempt from liquidation but it varies on a case by case basis. This is just one of the reasons why it is extremely important to consult with an experienced bankruptcy attorney before filing a bankruptcy case.

Judgments.

Even if a creditor has sued you and obtained a judgment against you, that judgment may often be discharged in a bankruptcy. In Texas, once a creditor has obtained a judgment against you, it may be able to garnish your bank account or seize nonexempt assets to collect that debt. Imagine trying to write a check or use your ATM card only to discover that you have no funds in your account because a judgment creditor has already garnished it. You can stop a garnishment action or other post-judgment collection action by filing a bankruptcy.

These are just a few of many reasons to consider filing a form of bankruptcy. For more information, please contact the Ferguson Law Firm today.