Here’s the “Easy” button: For the typical person that I see in a debt consultation, the determining factors for qualification for a Chapter 7 bankruptcy are the person’s income and expenses. Keep in mind, it’s like looking at an elephant from the side versus looking at it from the front: each view presents a different […]

One factor in determining if you qualify for Chapter 7 is to compare your previous six months of income to median income for people in Texas, based on the household size. Although you can be above median income and still qualify for a Chapter 7 bankruptcy, the easiest way to qualify is to be below […]

Most people that file bankruptcy file under Chapter 7, which is the form of bankruptcy where there is no monthly payment to a trustee. Chapter 7 has numerous advantages over Chapter 13. Here are the key advantages: Chapter 7 Bankruptcy is a Relatively Short Process Once you file the Chapter 7, it is typically open […]

Although you can be above median income and still qualify for a Chapter 7 bankruptcy, the easiest way to qualify is to be below median income for your household size. The real focus here is this: what is the appropriate household size? Comparison of Your Household Income To Median Income One factor in determining if […]

I had a consultation with a couple that was running out of cash flow each month before they got to their $640/month truck payment. They were having to “rob Peter to pay Paul,” to stay current on the truck payment, and it looked like they couldn’t do that any longer. They were waiting for their […]

In every initial consultation, I ask how much was the person’s tax refund. Next, I ask how much was used to repay a debt owed to a family member. I don’t ask if they paid a family member, I’m asking how much was paid to a family member, because more than half of the people […]

Debt settlement is a great tool for getting out of debt, and it hits all of the right buttons: You get out of debt at a discount! You save money while getting out of debt! You get out of debt without filing bankruptcy! You go long enough without having made a payment on your credit […]

Many people use their tax refund money to pay what they can on certain bills. The “pay what you can” option for handling a debt problem only works for the debts that you are paying. My view on this option, and all others, is this: If you can’t see yourself going all the way down […]

Paying every bill on time and in full is a great idea, but it’s not usually a workable option when you are having cash flow problems. Most bills are paid using cash flow, which is the money that comes from your paychecks. In contrast, cash savings is money in a savings account or money that […]

A conviction for DUI/DWI (driving under the influence/driving while intoxicated) can have a significant financial impact. Jail time or the loss of driving privileges may cause an interruption or termination of employment. Stiff fines are usually part of a DUI penalty. The addition of court costs and surcharges make those fines even more difficult to […]