The rules affecting what happens to Chapter 13 debtor’s tax refunds while they are in bankruptcy differ depending on where the case is filed. These rules are generally set out in the local rules of the court or a general order. In the Eastern District of Texas, the Chapter 13 Trustee will allow a debtor […]
A funny story from the world of credit…
Okay, since here at DFW/Denton/Lewisville Bankruptcy we’re always addressing serious topics, I decided to keep it light today. There’s a story buzzing around the internet that a 3 year-old recently got an American Express Gold Card application in the mail. Also, there are many report of dogs and cats getting credit card offers. If that’s […]
BAD CREDIT SCORES CAN PROLONG UNEMPLOYMENT
Many employers are now checking credit scores of applicants prior to making offers of employment. For many unemployed Americans, this practice is unfair. Consider people who have great credit and payment histories until they lose their jobs. But once their income stops they fall behind on their payments, causing negative marks on their credit report […]
BANKRUPTCY: CROSS-COLLATERALIZATION AND CREDIT UNIONS
In bankruptcy, debtors often wish to discharge their unsecured debt but keep their secured collateral. This is generally allowed in bankruptcy, but a practice commonly employed by credit unions makes this process more complicated and often more expensive. The reason is because credit unions often include cross-collateralization clauses in their loan documents. Cross-collateralization means that […]
BANKRUPTCY: EXEMPTION FROM THE CREDIT COUNSELING REQUIREMENT
Debtors wishing to file bankruptcy are required to successfully complete a credit counseling course during the 180 days prior to filing bankruptcy. However, debtors that can show that they are incapacitated due to mental or physical disability may be exempt from this requirement. Under Sec. 109(h)(4) of the Bankruptcy Code, a debtor may be excused […]