Debt Relief Attorney in Waco & Killeen

Debt Relief Options We Handle in Waco

Resolving overwhelming debt means matching the right legal tool to the right problem. We handle the following practice areas, each addressing a specific debt situation Central Texas clients face.

• Chapter 7 Bankruptcy: Eliminates qualifying unsecured debts, including credit cards and medical bills, without a repayment plan. The process typically completes in a matter of months and triggers an automatic stay the moment the case is filed, immediately halting collection calls, wage garnishment, lawsuits, and repossession actions.
• Home Loan Modifications: We negotiate directly with lenders to adjust mortgage terms, helping clients keep their homes without entering a Chapter 13 repayment plan. With more than 400 modifications completed, this is one of the most established services we offer.
• IRS Tax Debt Resolution: We use bankruptcy law to discharge or reduce qualifying federal tax debts. Not every tax debt qualifies, and the rules depend on timing and filing history, which is why a case-specific review matters.
• Foreclosure and Repossession Defense: Filing for bankruptcy triggers the automatic stay, which can halt foreclosure proceedings and repossession actions immediately, giving clients time to evaluate their options.
• Creditor Harassment Intervention: We intervene legally to stop collection lawsuits, payday loan harassment, and AAFES garnishments, placing the legal process between our clients and their creditors.

Chapter 13 bankruptcy, which reorganizes debt into a repayment plan lasting three to five years, is another available path. Not every debt qualifies for discharge: recent tax debts, student loans, and certain other obligations may survive bankruptcy depending on the circumstances. We review each client’s complete picture before recommending a direction.

Filing in the Western District of Texas & Texas Exemption Benefits

Waco-area clients file in the U.S. Bankruptcy Court for the Western District of Texas, Waco Division, which covers McLennan County and surrounding Central Texas counties. Familiarity with that court’s trustees, local rules, and practices is a practical advantage that comes with 40 years of filing cases there.

Texas offers some of the most favorable debtor exemptions in the country. The Texas homestead exemption can protect a primary residence from most creditors in bankruptcy, which matters significantly for homeowners weighing their options. Texas also has no state personal income tax, a factor that can influence how tax-related debt strategies are structured, and state law sets a statute of limitations on debt collection that affects what options are available for older or delinquent accounts. We account for all of these when building a debt relief strategy.

After discharge, we provide guidance on creating a new family budget and rebuilding credit. We also monitor developments in federal debt relief programs, including the HAVEN Act, to help clients benefit from emerging protections as they become available.

Ready to take the first step? Call Erin Baker Shank, PC. at (254) 690-4110 to schedule your free consultation with a debt relief attorney in Waco.

Frequently Asked Questions

What Are the Benefits of Hiring a Debt Relief Attorney?

A debt relief attorney handles creditor communication on your behalf, stopping the calls and letters while your case is resolved. More importantly, an attorney builds a strategy specific to your debt type, your assets, and the rules of the U.S. Bankruptcy Court for the Western District of Texas, Waco Division. Generic debt advice doesn’t account for Texas-specific exemptions or the local court process. An attorney who has practiced here for decades does.

How Does Bankruptcy Affect My Credit Score?

Filing typically causes an initial drop in your credit score. A Chapter 7 filing stays on a credit report for up to 10 years; Chapter 13 stays for up to 7 years. That said, many clients find their credit may improve faster than expected once crushing debt is cleared because the debt-to-income picture changes immediately. We provide post-discharge guidance on rebuilding credit so clients leave the process with a plan, not just a discharge order.

What Does the Home Loan Modification Process Involve?

Modification starts with a financial assessment to determine what the lender may accept. Documentation typically includes income verification, recent tax returns, and bank statements. We then negotiate directly with the lender to adjust the interest rate, extend the loan term, or restructure the principal. Having completed more than 400 modifications, we understand what lenders respond to and where the process commonly stalls. For clients whose primary goal is keeping their home, modification can be a better path than Chapter 13.

Are Virtual Consultations as Effective as Meeting in Person?

For the work we do, yes. We conduct all consultations, document reviews, and hearing preparation via Zoom and phone. Clients in Waco, Killeen, and throughout Central Texas manage their entire case remotely without a single in-person visit. Secure communication platforms handle everything that once required an office visit, and many clients prefer the privacy of resolving a sensitive financial matter from home.

How Does Military Status Affect Debt Relief Options?

Military and veteran clients have access to protections civilian debtors don’t. The Servicemembers Civil Relief Act (SCRA) provides active-duty members with interest rate caps on pre-service loans and other legal protections. The HAVEN Act shields veteran disability benefits from being counted as disposable income in bankruptcy, which can significantly affect a Chapter 13 calculation. We also handle AAFES garnishment defense and structure debt discharge to help protect security clearances, a priority for Fort Hood-area clients.