Christopher Todd Morrison, P.C.
Affordable Bankruptcy

Houston Bankruptcy Blog

Supreme Court ruling seen as victory for debt buyers

Texas residents likely know that creditors generally cannot sue for the collection of debts once the statute of limitations has expired. However, courts have been divided as to whether or not filing a claim on a stale debt as part of a bankruptcy violates the Fair Debt Collection Practices Act. In May 2017, the Supreme Court ruled that it did not, reversing an 11th Circuit ruling.

The Supreme Court said that making a bankruptcy claim on expired debt was not false or misleading. This was because the obligation was still a claim when referring to bankruptcy law. The case began in 2014 when the debtor filed for Chapter 13 bankruptcy. A collection agency filed a claim on an unpaid credit card balance of $1,879.71. However, since the last transaction on the card had been made 10 years prior to the filing, it was beyond the applicable statute of limitations on credit card debt.

Tips to reestablish a positive credit history after bankruptcy

Texas residents may know that a bankruptcy will stay on their credit report for either seven or 10 years. However, it may be possible for people to start rebuilding their credit right away. The first step is to create a budget that makes paying bills on time a top priority. A timely payment history makes up 35 percent of an individual's FICO credit score.

Another effective way for an individual to rebuild credit after a bankruptcy is to obtain a free credit report. Everyone is entitled to a free copy of their report from each of the three major bureaus per year. Individuals should go over their report to check for errors or to see if debts that have been discharged are erroneously listed as late or outstanding. If there are errors, it is a good idea to contact the lender linked to the error or to file a complaint with the credit bureau.

Should I file for Chapter 13 bankruptcy?

People often think that their only option to get relief from debt is to file for Chapter 7 bankruptcy and have all or most of the debt discharged. However, before you resolve yourself to this solution, keep in mind that there are other forms of bankruptcy, including Chapter 13.

In this post, we will examine two critical factors in determining whether this type of bankruptcy may be a good option for you to consider: your debt and your ability to repay it.

Know your options if you are being harassed by creditors

Being in debt is an incredibly stressful situation. You can be worried about losing your home, having your utilities shut off and being in debt forever. On top of this, you may also be struggling with job loss or difficulty finding a job, medical care and other situations that often contribute to debt.

The last thing anyone in this situation needs it to be harassed by creditors. Sadly, many people are targeted and mistreated by collections agents who cross the line when attempting to collect a payment. If you are dealing with creditor harassment, there are a few important things you should know.

What exactly is chapter 7 bankruptcy?

There are many things in life that can cause a person stress, but there are few things in modern life that can create consistent and oppressive stress like financial troubles. Whether it is caused by medical debts due to a sudden health concern, the loss of a job or many other factors, significant amounts of debt and the issues that accompany it can strain every aspect of a person’s life.

Fortunately for many people, there are ways to deal with their debts in a constructive way. Although it should never be the first option, declaring chapter 7 bankruptcy can provide people with relief from calls and harassment from debt collectors, foreclosures, etc. However, it is important to understand what chapter 7 bankruptcy really entails.