Gipson, Norman & Root- Bankruptcy Attorney 281-823-7016 or 888-512-6044
Free 30 Min Consultation
Helping You Get To The Root Of The Problem

Houston Bankruptcy Law Blog

Toy company files Chapter 7 bankruptcy

Toys have played a significant role in just about every child's life. However, making toys is a business just like any other industry in Texas and elsewhere. This means that a toy company can find itself facing financial hardship that could force it to go out of business. Toymaker Summit Products LLC found this out the hard way and has recently filed for Chapter 7 bankruptcy.

The toy company reported over $6.8 million worth of liabilities on its bankruptcy petition submitted to the court. Summit Products also listed $1.6 million worth of assets. Everlasting Toys Co. Ltd. reportedly holds $834,946 in unsecured and non-priority claims. The bankruptcy filing also reported $796,581 owed to Eastern Progress.

Middle class faces overwhelming debt from medical bills in Texas

Many politicians from both sides of the political spectrum talk of the importance of the growth of the middle class to the economic recovery in the United States. However, despite the political rhetoric, the middle class in Texas and other states is still struggling financially amid the slow economic recovery. One of the top concerns regarding personal finance among those in the middle class is overwhelming debt caused by medical bills.

The middle class has been steadily shrinking and has decreased in size from 53 percent to 44 percent since 2008. Also, statistics have shown that the number of individuals who consider themselves as "upper-middle class" have also dropped to 55 percent in 2012. This is a significant decrease from 2008 when 63 percent of people considered themselves upper-middle class.

Musician finds herself facing overwhelming debt after tour

Some careers are more difficult to succeed in than others. Careers in the arts are well-known to be particularly challenging. Despite an individual's passion or talent for this type of creative endeavor, many will find they are not able to make a decent living in the arts sector in Texas or in any other state. One musician found this out firsthand and also found herself facing overwhelming debt after a year of touring.

The woman, now 32 years old, has since left the music industry and currently makes her living as a freelance writer and editor. Although she now believes her debt problems are under control, her personal finances were anything but under control when she was still in the music industry. The woman says that she had failed to plan properly for her year-long tour as a musician.

Ways for Texas consumers to deal with overwhelming debt

Most Texas residents would agree that getting into debt is the easy part. Whether over time or because of a catastrophe such as a job loss or sudden illness, an individual can end up facing overwhelming debt. The weight of a person's debt can make him or her feel as if there is no way out.

Numerous sources offer suggestions regarding the reduction of debt. A majority of the advice recommends that the first thing to do is to take stock of how much and to whom a person's debts are owed. Without a clear and complete picture of the financial situation, knowing where to start may be impossible.

Chapter 13 bankruptcy may be answer to mortgage lender lawsuit

Purchasing a home is a significant financial decision for most people. This usually requires taking on some type of loan in order to obtain the funds necessary to purchase the home. However, this also means that the homeowner will be responsible for mortgage payments. One couple in Texas obtained a mortgage for their home but had trouble making payments. Such a situation could result in a possible Chapter 13 bankruptcy.

The mortgage lender filed a lawsuit against the couple in early March in an attempt to foreclose upon the home. The plaintiff alleges that the couple had failed to keep up with payments on the loan, which they had signed onto in early July 1988. The defendants allegedly owe $5,424.28 in unpaid debt on their mortgage.

Man plows snow to help pay friend's overwhelming debt

It is good to have friends. Good friends in Texas will do what they can to help when one is in need. One man is being a good friend by helping with his childhood friend's overwhelming debt caused by medical bills. The friend is doing this by plowing snow for residents in his locale.

The man had always done this deed for his neighbors for free just to help out the community. However, this year the man is doing things slightly differently. He is now clearing snow for his neighbors and is asking for a donation to help his childhood friend pay for his overwhelming medical bills. The man plans to clear snow from a large store, and then he will continue to clear as many as 40 driveways per day.

Family faces overwhelming debt from infant's rare liver disease

The unexpected can happen in life, which means that people should be ready for just about anything. Spontaneous occurrences and situations can result in a need for medical care. However, this could also cause people to fall into overwhelming debt in Texas or in any other state. This may be what one family is facing now that their child has been diagnosed with a rare disease.

The child has recently been diagnosed with hemangioendothelioma, which increases her chances of experiencing heart failure. This disease is characterized by tumors in the young infant girl's liver. At the moment, the tumors are benign; however, the child still requires visiting three different doctors on a regular basis. The medical bills, as a result, have been skyrocketing for the young girl's family.

How Texas residents can deal with excess debt and taxes

It's common for people to be overwhelmed with debt. Under these circumstances, lenders may forgive or cancel excess debt owed. Due to the debt cancellation, many Texas residents are required to report this as taxable income. With the Mortgage Debt Relief Act, cancellation of debt on someone's residence may be excluded from taxable income.

When individuals are no longer obligated to pay their creditors, it's called debt cancellation. Once this occurs, creditors must report the amount forgiven to the IRS using the 1099-C form. Now that the debt is forgiven and reported, individuals must normally include this as income. However, there may be some exceptions to this rule if certain conditions are met. Debt that was reduced due to foreclosure or restructuring of a mortgage may be eligible for relief under the Mortgage Debt Relief Act.

Economists disagree on meaning of overwhelming debt in Texas

Economics is not an exact science and many times economic data can be interpreted to mean a variety of different things. This is why economists will debate with each other vehemently regarding the meaning behind the numbers concerning consumer credit card use in Texas and other states. Some believe overwhelming debt weakens the economy, while others believe debt to be a sign of improved consumer confidence.

Those who tend to look at credit card debt as a sign of consumer confidence argue that reasonable amounts of personal debt means that consumers are more confident in their financial situations. Also, almost 70 percent of the American economy is powered by consumer spending. Usually, high consumer confidence and spending are considered positive signs for the overall economy.

Choosing between Chapter 7 and Chapter 13 bankruptcy in Texas

Anybody may find themselves facing financial challenges, including overwhelming debt. This is especially true in an economy that has been mostly slow to recover from the recent recession in Texas and everywhere else in the nation. Many people who have run out of options will decide it is time to file for bankruptcy. However, one will still have to decide whether to file a Chapter 13 or Chapter 7 bankruptcy.

The most common type of bankruptcy filed by individuals is a Chapter 7 bankruptcy. This type of bankruptcy liquidates all of the petitioner's property that is not exempt. Some types of property that are usually exempt include clothing and household goods. Funds garnered through liquidation will be given to creditors with the remaining debts being discharged.

CONTACT US NOW

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Bankruptcy Blog Bankruptcy Faq

Privacy Policy | Business Development Solutions by FindLaw, a Thomson Reuters business.