Bankruptcy Act Means Test Under the Bankruptcy Act your income and expenses will be analyzed to determine if you qualify to file a Chapter 7 or if you must file Chapter To apply the means test, the courts will look at the your average income for the 6 months prior to filing and compare it to the median income for Texas. Bankruptcy Court Please refer to the Local Rules of the Southern District of Texas, as well as the Federal Rules, for procedures and information. Once a case is assigned to a particular judge within the Southern District, please refer to the "Judges' Procedures & Schedules" for specific information. Texas Bankruptcy Fees. Bankruptcy filing fees are the same in every state of the country. If you’re filing for Chapter 7 bankruptcy, the fee is $ If you’re filing under the terms of Chapter 13, the filing fee is $ These fees are the same regardless of whether you’re filing alone or a joint petition. In the vast majority of cases.
Related videosHow to Qualify for a Chapter 7 Bankruptcy
In most cases you will not lose your home or car during your bankruptcy case as long as your equity in the property is fully exempt. This means that you gave that creditor a mortgage on the home or put your other property up as collateral for the debt. Bankruptcy does not make these security interests go away.
There are several ways that you can keep collateral or mortgaged property after you file bankruptcy. You can agree to keep making your payments on the debt until it is paid in full. Or you can pay the creditor the amount that the property you want to keep is worth. In some cases involving fraud or other improper conduct by the creditor, you may be able to challenge the debt. If you put up your household goods as collateral for a loan other than a loan to purchase the goods , you can usually keep your property without making any more payments on that debt.
Many people believe they cannot own anything for a period of time after filing for bankruptcy. This is not true. You can keep your exempt property and anything you obtain after the bankruptcy is filed. However, if you receive an inheritance, a property settlement, or life insurance benefits within days after your bankruptcy, that money or property may have to be paid to your creditors if the property or money is not exempt. You can also keep any property covered by Texas bankruptcy exemptions through the bankruptcy.
Most of the time, this meeting will be a short and simple procedure where you are asked a few questions about your bankruptcy forms and your financial situation.
Occasionally, if complications arise, or if you choose to dispute a debt, you may have to appear before a judge at a hearing. To find the location of the court that serves your area visit the Texas Federal Bankruptcy Court Directory page.
There is no clear answer to this question. Unfortunately, if you are behind on your bills, your credit may already be bad.
Bankruptcy will probably not make things any worse. But since bankruptcy wipes out your old debts, you are likely to be in a better position to pay your current bills, and you may be able to get new credit.
Yes, there are several options available. While technically not a credit card you could use a bank or debit card to perform activities for which you normally would use a credit card.
You also may be able to keep the credit card you already have if the creditor grants approval. If these options do not work you can get secured credit card which is backed by your own bank account.
Public utilities, such as the electric company, cannot refuse or cut off service because you have filed for bankruptcy. However, the utility can require a deposit for future service and you do have to pay bills which arise after your bankruptcy is filed. If someone has co-signed a loan with you and you file for bankruptcy, the co-signer may have to pay your debt. Here are some potential benefits of even a straightforward Chapter 13 case, none of which are available under Chapter Under Texas law, the following are eligible as exemptions other when filing for Chapter 7 or Chapter 13 bankruptcy:.
Texas is also very flexible in how its personal property exemptions work. Most states give a list of categories of property—vehicles, furniture, tools of trade, and such—and then specify a maximum dollar amount in value allowed as exempt in each category. This group includes furniture, clothing, jewelry, tools of trade, one vehicle per person, two firearms per person, and farm animals and household pets.
Note that in the case of vehicles and other collateral with debt against them, these amounts protect your equity, AFTER subtracting off the amounts that you owe. Not being stuck with one maximum exemption amount for each little category of assets makes it easier to exempt all of what you own. Texas is one of a small handful of states which provide an unlimited homestead exemption for your home, meaning that it does not matter how much it is worth or how much equity you have in it.
Most states have a maximum amount you can protect, and after that it could be sold to pay your creditors. Not in Texas.
With Texas homestead exemptions , there are some acreage maximums—10 acres in a city, town or village, acres in the country acres for a family.
Chapter 12 of the U. Bankruptcy Code is a specialized type of bankruptcy designed for family farmers, ranchers, dairy owners, poultry and livestock producers, as well as family fishermen.
It helps you save your farm and business by allowing you to reorganize your finances, reducing and restructuring your debt. If you qualify, Chapter 12 provides some very important benefits, often better than those available in either Chapter 13 or Chapter 11, the other two possible options for reorganizing a business.
For farmers and ranchers, here are the qualifications:. Chapter 12 is arguably the most debtor-friendly option in the Bankruptcy Code. Bankruptcy filing fees are the same in every state of the country.
Attorney Fees in Bankruptcy. In most Chapter 7 bankruptcy cases, attorney fees are paid before filing, often via a payment plan based on your budget and the timeframe within which you want to file. Alternatively, in Chapter 13 most bankruptcy lawyers ask for partial payment upfront with the remaining fees paid in monthly installments through your Chapter 13 repayment plan.
Credit Counseling Fees in Bankruptcy. Under the US Bankruptcy Code, if you file for bankruptcy you must undergo credit counseling from a nonprofit credit counseling agency.
Agencies must be approved by the United States Trustee within days of your filing for bankruptcy. Both the credit counseling and personal financial management courses can be completed in person, online, or over the phone. Get a free consultation and talk to an experienced bankruptcy lawyer today. Call today or email contact leinartlaw. Discuss your situation and your options with an experienced bankruptcy lawyer.
Your privacy is important to us. Automatic Stay Once you have filed your paperwork with the bankruptcy court, an automatic stay immediately goes into effect. This provision prevents creditors from making direct contact with you or staking a claim on any of your property from the day of filing forward. This will stop any foreclosure proceedings. Bankruptcy Trustee Upon filing, the court will assume legal control of your debts and any property not covered by your Texas exemptions.
A trustee will be appointed to your case by the court. The job of the trustee is to see that your creditors are paid as much as possible. This person will thoroughly review your paperwork, particularly the assets you have in your possession and the exemptions you wish to claim, and can challenge any element of your case.
Creditors rarely attend a Chapter 7 bankruptcy meeting; one or two creditors may attend a Chapter 13 meeting, especially if there is a question as to the legitimacy of some aspect of the plan.
If a compromise can not be reached, a judge will intervene. The meeting of creditors typically lasts about five minutes. You will receive notice of the location of the meeting but you may contact the court to confirm the address and time. The trustee will sell this property and distribute the proceeds to your creditors. If there are no challenges, you will receive a notice from the court that your dischargeable debts have been discharged within three to six months.