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San Antonio / Schertz / Alamo Heights / Garden Ridge / Bexar County Bankruptcy Attorneys

An increasing number of Bexar County homes going into foreclosure as a so-called underwater or upside-down mortgage: one in which the San Antonio homeowner owes more than the home is worth.

In the first eight months of the year, the number of underwater borrowers in foreclosure trouble jumped 54 percent from the same period a year ago, from 1,359 to 2,095, according to data from Foreclosure Listing Service. The total includes properties to be auctioned off in September and October.

Twenty percent of all local foreclosure postings this year have been for homes in which people owed more than the market value of the home, up from 14 percent during the same eight months in 2009.

Foreclosure Listing Service calls mortgages underwater when the loan exceeds the county's appraised tax value of the home, a number that usually lags the market.

But it's not just homes facing foreclosure in San Antonio that can be underwater. Typically, underwater homeowners simply keep paying their mortgages for another year or two until home price appreciation causes the values to right themselves. But many homeowners don't realize they are underwater until they try to sell their home due to loss of job, injury at work & many other reasons.

There are so many people that are finding themselves with property that they either owe more money on than it is worth or it's not growing in value as much as they expected,” said George Roddy, president of FLS.

Underwater mortgages typically make up between 4 percent and 8 percent of foreclosure postings, and Gaines said the recent increase likely is because of the proliferation a few years ago of no-money-down mortgages. Even if prices stay stable in that scenario, homeowners with just a few years of equity will be stuck and unable to sell in a pinch, unless they have extra money to cover real estate commissions and closing costs.

Most people who file for bankruptcy in San Antonio are victims of circumstance. Some get in over their heads with variable interest rates on their homes. Some lose a job or get sick, fall behind in payments, and then are threatened with foreclosure. Others simply get behind in credit card payments.

Regardless of the reasons for your financial troubles, there is no shame in contemplating bankruptcy. Chapter 7 and Chapter 13 bankruptcies were established to give people like you a second chance.

We Relieve the Stress

At Fears | Nachawati, we are fully devoted to helping people file for bankruptcy in San Antonio, Texas and leave their debts behind. Our job is to relieve the stress of debt and the threat of foreclosure to let people get on with their lives. We have made every aspect of our services as client-centered as possible:

Very flexible payment plans are available and we accept credit cards from family, friends, and other third parties.
All of our staff and one lawyers speak Spanish.
We have office hours 7 days a week, and evening or weekend appointments are available.
We offer free parking at all locations.
Our attorneys will talk with you in plain language, never trying to confuse you with technical terms.

We understand that you may be nervous about even exploring the option of bankruptcy. So we encourage you to learn as much as you can about bankruptcy by exploring our site. If you are just beginning your search, try our Bankruptcy Overview page for a summary of our informational pages.

Contact Us

Of course, at any time, you can call us at 1 (888)232-7313 with any questions. You can also email us through our contact page. We are here to help.

Bankruptcy's "Fresh Start"

The principal theory of consumer bankruptcy in America is that it provides a “fresh start” to debtors. A prime example of this policy is found in the 1918 Supreme Court case of Stellwagen v. Clum in which the Court stated:

“This purpose of the act has been again and again emphasized by the courts as being of public, as well as private, interest, in that it gives to the honest but unfortunate debtor . . . a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.”

The idea of giving a poor, but honest debtor a “fresh start” is not a modern concept. The Bible also contains debt forgiveness laws:

“At the end of every seven years you shall grant a release of debts. And this is the form of the release: Every creditor who has lent anything to his neighbor shall release it; he shall not require it of his neighbor or his brother, because it is called the Lord's release.” Deuteronomy 15:1-2.

Under modern bankruptcy law in San Antonio a debtor is entitled to a Chapter 7 bankruptcy discharge once every eight years. However, this is not a clean slate. A Chapter 7 bankruptcy can stay on your credit report up to 10 years, and you may encounter other obstacles after filing bankruptcy (e.g. obtaining credit). Several bankruptcy courts have described the Chapter 7 discharge as giving honest but unfortunate debtor a fresh start, not a head start.

Bankruptcy is a safety net when you are at the end of your rope. The Chapter 7 discharge provides a second chance and a new beginning free of creditor harassment. If you are burdened with debt, consult with an experienced Chapter 7 bankruptcy attorney and discover how a fresh start under the law can help you.

Bankruptcy Provides Immediate Relief

Individuals buried in debt need fast relief. The required relief may vary from case to case, like relief from creditor harassment, from a lawsuit, or from a pending foreclosure. Fortunately, the bankruptcy process provides you with immediate legal relief from the time you hire a bankruptcy attorney. As your case progresses, the legal protections grow broader in scope and more powerful in effect.

The first legal protection starts when you hire San Antonio bankruptcy lawyer to represent you during your bankruptcy case. This protection is derived from the federal Fair Debt Collection Practices Act (FDCPA). Under the FDCPA a debt collector is prohibited from direct contact with a debtor who is represented by an attorney. When you hire counsel you are able to forward all communication from a debt collector to your lawyers, and the debt collector may no longer contact you directly. This protection stops harassing phone calls and threatening letters from third party debt collectors while you and your San Antonio bankruptcy attorneys are preparing to file your bankruptcy.

The second powerful protection commences the moment you file your bankruptcy case in San Antonio. The bankruptcy automatic stay stops all creditor collection action immediately and automatically. This legal protection applies to all creditors whether or not the creditor is aware of the bankruptcy filing. The automatic stay is a legal protection that immediately stops any pending lawsuit, foreclosure, garnishment, or other legal proceeding. The automatic stay is effective during the duration of your bankruptcy case.

The final protection is the order of discharge that occurs at or near the end of your case. The discharge order is a court injunction that prohibits discharged creditors from taking any kind of collection action against you personally. The discharge injunction forbids a discharged creditor from sending bills, making collection phone calls, or filing a lawsuit to collect on a debt. This protection is final and permanent. Violation of this court injunction has serious consequences, and may result in a federal contempt of court charge.

If you are experiencing a debt problem and need immediate relief, consult with an experienced bankruptcy law firm and find out how the bankruptcy process can help you. Whether you need to stop harassing phone calls, or end a legal proceeding, bankruptcy’s powerful protections can eliminate your debt and give you peace of mind.

When Bankruptcy Is The Best Decision

The worst thing about filing bankruptcy in San Antonio is agonizing over the decision to file. Many people worry about under-going a grueling investigation concerning their finances, losing everything they own, and having to deal with a very public court proceeding. The truth is that bankruptcy can be the best decision for someone drowning in debt.

Once you decide to file bankruptcy, you will discover that the procedure is very simple and straight-forward. The bankruptcy process essentially breaks down to an accounting to determine whether you have sufficient assets or income to pay something to creditors. If you do, then your creditors will receive some payment and the rest of your debts are discharged. If you don’t, then creditors receive nothing and are discharged. There are a few narrow exceptions to discharging debts, like student loans, child support, and recent taxes, but most debts are dischargeable.

Nearly all those who file bankruptcy in San Antonio are able to keep all of their property. The United States Trustee Program reports that nationwide only around four percent of all Chapter 7 bankruptcy cases have assets that are turned over to the bankruptcy trustee. That means one case in twenty-five may have non-exempt property that is taken and sold to pay creditors. An experienced San Antonio bankruptcy attorney is able to identify assets that may be at-risk and will advise the client regarding options for protecting the asset from turn-over.

Many people are unaware that the bankruptcy process is quite private. The press reports on celebrities who file bankruptcy, but unless you are famous or infamous, you will likely not receive any attention. Newspapers no longer publish the names of individuals who file bankruptcy in San Antonio. Notice of your bankruptcy is sent to your creditors, but not to your friends, family, bank, or your employer (unless you owe money to them).

The typical debtor never sees the bankruptcy judge, and there is generally one meeting with a bankruptcy trustee. This meeting will take place with other debtors and, while it is open to the public, it is rare that anyone other than debtors, attorneys, and an occasional creditor attends this meeting. Most clients report being very nervous about meeting with the bankruptcy trustee, and are surprised at how fast and easy the meeting actually is.

Many clients confess that bankruptcy was the best decision to discharge overwhelming debt. Once the burden of debt has been lifted, you feel better and your financial condition can begin to improve. If you are struggling with debt, speak to an experienced bankruptcy lawyer in San Antonio and learn how the federal bankruptcy law can provide you with a fresh start.

Don't Be On Your Own During Bankruptcy

A person who files a bankruptcy case without a bankruptcy attorney is called a pro se debtor. “Pro se” is Latin meaning “for oneself;” in other words, you are on your own. Being on your own during your bankruptcy may save a few upfront dollars, but can cost you plenty in the long run. There are many negative consequences that are often unexpected and sometimes disastrous.

The savings pro se debtors receive is minimal and the risk is great. San Antonio Bankruptcy Law Firm fees during bankruptcy are supervised by the United States Bankruptcy Court. The federal bankruptcy law allows a San Antonio bankruptcy law firm to collect reasonable compensation for services rendered during a bankruptcy case. Consequently, San Antonio bankruptcy attorneys charge similar fees in order to stay competitive, and bankruptcy lawyers must disclose their fee to the bankruptcy court.

When you are represented by an experienced bankruptcy attorney you receive several benefits. Your bankruptcy lawyer brings years of experience and knowledge in areas including the Federal Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, the bankruptcy court’s local rules, federal bankruptcy case law, and state and federal exemption and collection laws. Your San Antonio bankruptcy attorney is also familiar with the bankruptcy judge, the bankruptcy trustee, and local creditor practices.

When you are represented, you will have counsel at the Meeting of Creditors with the bankruptcy trustee. The trustee assumes that a pro se debtor has made errors in the bankruptcy, and will grill the pro se debtor and scrutinize the bankruptcy case. When you are represented, your San Antonio bankruptcy attorney helps you answer any trustee questions, and can file motions and responses via the court’s electronic filing system. When you are on your own you must mail or personally file documents with the court and must appear before the bankruptcy judge to reaffirm a debt.

The federal law guarantees open access to the courts and permits self representation in lawsuits, including bankruptcy proceedings. However, the benefit of having an experienced bankruptcy attorney at your side far outweighs any savings proceeding on your own. Consult with an experienced San Antonio bankruptcy lawyer and discover how the federal bankruptcy laws can help you.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.