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Webster Texas Bankruptcy Blog

5 steps to prevent outragious medical debt

One of the most common reasons why fiscally responsible people find themselves in the throes of a debt problem involves medical expenses. When faced with the decision of whether to go into debt or continue suffering from declining health, most people choose to go into debt to get the medical care they need. However, by making sound choices, you might be able to prevent a medical debt problem.

Here are five things that will help you prevent a medical debt hailstorm:

Will bankruptcy ruin my credit?

You may have been dealing with your debts for quite some time. You are tired of hearing creditors calling your phone demanding their money be paid. You may be trying to decide what is best for you, your family and financial future. The possibility of filing for bankruptcy may be your last resort. It is true that with any major life-changing decision you must make, there are pros and cons. You must decide which is best for you. But you may be wondering, will filing for bankruptcy really ruin my credit?


Which kind of bankruptcy should I choose?

Mountains of debt may seem insurmountable, but they can also fall quickly. Whether from medical bills, job loss, divorce or other circumstances, suddenly you're facing more debt than you can handle. Declaring bankruptcy could be what you need to get back on your feet and start over.

There are two main kinds of personal bankruptcy: Chapter 7 and Chapter 13. The kind that's right for you depends on several factors.

Bankruptcy comes with requirements for counseling and education

Filing for bankruptcy is a decision that doesn't come easily. It is also one that doesn't happen right away because of the need to meet certain requirements. One of the requirements that has to be met is that you need to have credit counseling and debtor education. These have to be done at specific points in the bankruptcy process in order for them to be valid.

You can't take these courses from anyone. In Texas, as well as most other states, only agencies who are approved by the U.S. Department of Justice's Trustee Program can provide these services. Make sure that you are only dealing with these because you are wasting your time and money with others.

You don't have to lose your house in a Chapter 7 bankruptcy

Getting in over your head with debt doesn't take much. An unexpected illness, death in the family or loss of a job could leave you a few weeks behind in income. That can easily snowball into a situation where you're facing creditor calls and unable to make payments on all of your obligations due to increased payment amounts, penalties, fees, fines and interest.

If your debt has grown out of control, you may find yourself considering bankruptcy. However, you're also probably worried about how a Chapter 7 bankruptcy could affect your status as a homeowner. After all, the bankruptcy court has the power to liquidate some of your assets to repay creditors. If loss of your home is what's keeping you from seeking bankruptcy relief, there's great news. Texas has incredibly generous exemptions for homeowners.

Bankruptcy: What to know about filing to get out of debt

You were always good with money, but after a serious medical situation, you found yourself falling behind in debt. Now, you think there's no way out.

Fortunately, that isn't true. Bankruptcy is one option that could help you get back on track.

Important points to know about Chapter 13 bankruptcy

Some people who file for bankruptcy have assets that prevent them from being able to file for Chapter 7 bankruptcy. In some cases, individuals opt for a Chapter 13 bankruptcy so that they can hang on to some assets, which are exempt from the case.

There are many different things that people need to know when they are going to file Chapter 13 bankruptcy. All of these are important because they can impact the suitability of the filing.

Scams that target people listed in foreclosure filings abound

The thought of losing your dream home because of foreclosure can be difficult to stomach. Many people who are in this position will grasp at straws to try to keep their home. The issue with this is that they might end up falling for a foreclosure scam that ends with them facing financial hardships and still losing the home.

Before you decide what to do about your foreclosure, you should learn about ways to spot these scams so that you can avoid them. Essentially, one of the best things you can do is to take the time to investigate any company or program you are considering.

How does Chapter 7 differ from Chapter 13 bankruptcy?

The decision to file bankruptcy is a big one, but it isn't going to be the last decision you have to make about the situation. Once you know that you need to do something about your finances and determine that bankruptcy is the answer, you will have to decide what type of bankruptcy to seek.

The type of bankruptcy you file has several impacts on what will happen from there. Typically, the two options that you will have as a consumer are Chapter 7 or Chapter 13. Here are some of the notable differences between the two:

5 ways filing bankruptcy can help you

When debt is overwhelming, the situation might make you feel like you don't have anywhere to turn. Most people who are drowning in debt do have the option to file for bankruptcy.

While bankruptcy is something that some people see as the easy way out, this isn't the case. Bankruptcy isn't defeat. It is simply realizing that you simply can't overcome your current financial situation and taking action to start anew. If you are thinking about filing for bankruptcy, make sure you remember these benefits.

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