Dallas Bankruptcy Blog

Many people fear that after they file for bankruptcy, their credit will never be the same. They will never be able to own a home, finance a new car, or have the safety net that good credit affords them. But the reality is that you may be a better credit risk to some lenders after you file for bankruptcy.

Although you may currently be keeping your bills out of collections, those 30, 60, and 90 days past due marks on your credit report add up. Furthermore, many creditors take a look at how much debt your have, before allowing you to have more credit. So, just because you believe you have good credit because you are making the minimum payments on all of your debt, does not mean that lenders see it that way.

Lenders are aware that after you file for bankruptcy, you will not be allowed to do so again for 6-10 years. They are also aware that you will be free and clear of any debt — which mean that you will have the financial ability to repay new debt. They may prefer that you prove yourself by keeping a secured credit card paid off for 6-12 months before giving you new credit, but you may well be a better candidate for credit than you were before your bankruptcy.

If you are contemplating bankruptcy, contact the offices of Allmand and Lee at (214) 265-0123 to discuss your options. They have helped other good people through bad times and they can do the same for you, too.

After a bankruptcy, you can now begin living a debt-free life again. But, you will still need good credit to get some of the most important things in life, such as a home to raise your family in. Luckily, reestablishing your credit after a bankruptcy can be an easy and pain-free process. The first step is to get a secured credit card. A secured credit card will allow you to have credit, without the issuing lender taking any real risk. How it works is that you send the lender a deposit and, in return, they will send you a credit card with a credit limit equal to your deposit amount. So, a $300 deposit will get you a credit card with a $300 limit.Overtime, as you continue to pay the secured credit card on time and your bankruptcy ages, your credit score will begin to rise. This will also show other lenders that you are a good credit risk. To top it off, once you establish yourself with the lender who issued your secured credit card, they will return your deposit and allow you to keep the card (maybe even raising your credit limit).

If you are contemplating bankruptcy, contact the offices of Allmand and Lee at (214) 265-0123 to discuss your options. They have helped other good people through bad times and they can do the same for you, too.

Bankruptcy is a scary word for some people, but it should not be feared. It was established in order to help people in difficult situations and should be utilized if needed. If the help is there, why not accept it?

There are many different types of people that can benefit from bankruptcy, including:

Legal protection against creditors is automatic once you file for Bankruptcy

One of the most fundamental protections for individuals filing for bankruptcy is the automatic stay. A bankruptcy automatic stay goes into effect the instant a bankruptcy petition is filed, and is commonly referred to as bankruptcy protection. Bankruptcy protection is just that: Protection. Once an automatic stay goes into effect, you are protected from:

• Lawsuits being filed against you
• Liens on any of your property
• Creditor collection efforts
• Collection agency collection efforts
• Government collection efforts

In fact, the automatic stay is like pressing a button that simply stops creditors dead in their tracks. A bankruptcy automatic stay is a powerful arsenal at your disposal in filing for bankruptcy and will grant you the relief you need if you are at risk of:

• Being evicted
• Contempt for failure to pay child support
• Foreclosure
• Disconnection of utility services
• Wage garnishments

Filing for bankruptcy will allow you the opportunity to reevaluate your financial condition without having to defend against an onslaught of creditors at the same time.

Common Emergencies That an Automatic Stay Can Delay

Utility Disconnection: A bankruptcy automatic stay will keep your utilities from being disconnected. If any of your utilities are close to being turned off due to nonpayment, the stay will protect you for a period of at least 20 days. Utility services covered are water, electric, gas, and telephone service.

Foreclosure: You don’t have to lose your home through foreclosure if you plan to file for bankruptcy, at least not right away. If you are close to losing your home, the automatic stay puts a temporary hold on these proceedings and you may even be able to keep your home if you file for Chapter 13 bankruptcy.

Multiple Wage Garnishments: This is another common emergency that an automatic stay will delay. If you choose to file for bankruptcy, you can delay wage garnishments, receive your full salary, and possibly get all or most of the debts discharged so that you don’t have to worry about future wage garnishments.

Eviction: If you are facing eviction, a bankruptcy automatic stay may help delay these proceedings, but may not completely prevent them. Current bankruptcy laws tend to lean in favor of the landlord’s ability to continue with the eviction process, especially if your landlord had already filed an eviction notice with the courts prior to your filing for bankruptcy.

Understanding the automatic stay and what it will and will not cover is an intricate process that should not be taken for granted. It’s important to consult with an experienced bankruptcy attorney.

At Allmand and Lee, we have experienced bankruptcy attorneys who can help you down this hard road and on toward a better future. Please fill out our free and confidential evaluation form to see how we can help you. We have helped thousands of others resolve their financial crisis and get through this tough situation, and we can help you too.