Texas Chapter 7 Bankruptcy Laws: Chapter 7 cases deal with cases where the debtor records an income of less than the median income and is in debt. The cases are resolved by liquidating the assets of the debtor and using the proceedings to settle the creditors as long as they are non-exempted according to Chapter 7 bankruptcy laws. Federal Versus Texas Bankruptcy Exemptions. All states have sets of exemption laws, and the federal government has a list of federal bankruptcy exemptions, too. In Texas, you can elect to use either set, but you can’t mix and match—you must choose one scheme (although certain federal exemptions always apply, regardless of which set you choose). Is Texas Chapter 7 (Straight Bankruptcy) Bankruptcy Right for Me? In a bankruptcy case under chapter 7, you file a petition asking the court to discharge your debts. The basic idea in a chapter 7 bankruptcy is to wipe out (discharge) your debts in exchange for your giving up property, except for “exempt” property which the law allows you to.
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. Yes, but your spouse will still be liable for any joint debts. If you file together you will be able to double your exemptions.
If the spouses have joint debts, the fact that one spouse discharged the debt may show on the other spouses credit report.
Can filing bankruptcy stop bill collectors from calling? How long after filing will the creditors stop calling? Once a creditor or bill collector becomes aware of a filing for bankruptcy protection, it must immediately stop all collection efforts. After you file the bankruptcy petition, the court mails a notice to all the creditors listed in your bankruptcy schedules. This usually takes a couple of weeks.
Creditors will also stop calling if you inform them that you filed the bankruptcy petition, and supply them with your case number.
In some cases, you or your attorney should contact the creditor immediately upon filing the bankruptcy petition, especially if a lawsuit is pending. If a creditor continues to use collection tactics once informed of the bankruptcy they may be liable for court sanctions and attorney fees for this conduct.
Can I erase my student loans by filing bankruptcy? Generally, student loans are not discharged in bankruptcy. In 11 U. Student loans more than 7 years old used to be dischargeable under certain circumstances, but this provision was removed by an appropriations bill passed in October of Whether an exception applies depends on the facts of the particular case and may also depend on local court decisions.
Even if a student loan falls into one of the two exceptions, discharge of the loan may not be automatic. You may have to file an adversary proceeding in the bankruptcy court to obtain a court order declaring the debt discharged.
If you lived in your current state for more than 91 days but less than two years, you will file in your current state but use the exemptions from where you lived for majority of the day period immediately previous to the 2 year period before you filed.
If I am going through a divorce how will my ex-spouse filing bankruptcy affect our divorce settlement? Compared to other states, Texas provides some of the most lenient measures for exemptions, but not everyone is entitled to receive the exemptions. Like other states, Texas law requires specific steps from the beginning to the end of Texas bankruptcy. A resident of Texas must attend a credit counseling course six months before filing, and they must show proof of attending a debtor education course before a settlement is reached.
The two most common types of personal Texas bankruptcy include Chapter 7 and Chapter The most common form of corporate TX bankruptcy is Chapter This type of bankruptcy works for individuals with an outstanding amount of unsecured debt and low amounts of income.
Often referred to as liquidation or straight, this type of bankruptcy usually supplies someone or families with a clean slate after assets are acquired by a creditor. As in most other states, the state of Texas requires a family to pass a means test before qualifying for Chapter 7. Since the state of Texas is so large, some of the exemptions seem very large compared to other states, but they are nonetheless generous:.
A corporation facing economic troubles may file for Chapter 11 bankruptcy. This measure allows the owner to oversee changes within the company, possibly rearrange finances to increase profit, and hopefully decrease the amount of owed debt. The Bankruptcy Rules contain a set of official forms for use in bankruptcy cases. The Bankruptcy Code and Bankruptcy Rules and local rules set forth the formal legal procedures for dealing with the debt problems of individuals and businesses.
There is a bankruptcy court for each judicial district in the country. Each state has one or more districts. There are 90 bankruptcy districts across the country. The bankruptcy courts generally have their own clerk's offices. The court official with decision-making power over federal bankruptcy cases is the United States bankruptcy judge, a judicial officer of the United States district court. The bankruptcy judge may decide any matter connected with a bankruptcy case, such as eligibility to file or whether a debtor should receive a discharge of debts.
Much of the bankruptcy process is administrative, however, and is conducted away from the courthouse. In cases under chapters 7, 12, or 13, and sometimes in chapter 11 cases, this administrative process is carried out by a trustee who is appointed to oversee the case.
A debtor's involvement with the bankruptcy judge is usually very limited. A typical chapter 7 debtor will not appear in court and will not see the bankruptcy judge unless an objection is raised in the case. A chapter 13 debtor may only have to appear before the bankruptcy judge at a plan confirmation hearing.
Usually, the only formal proceeding at which a debtor must appear is the meeting of creditors, which is usually held at the offices of the U. This meeting is informally called a " meeting" because section of the Bankruptcy Code requires that the debtor attend this meeting so that creditors can question the debtor about debts and property.
A fundamental goal of the federal bankruptcy laws enacted by Congress is to give debtors a financial "fresh start" from burdensome debts. The Supreme Court made this point about the purpose of the bankruptcy law in a decision:. Local Loan Co. Hunt , U. This goal is accomplished through the bankruptcy discharge, which releases debtors from personal liability from specific debts and prohibits creditors from ever taking any action against the debtor to collect those debts.
This publication describes the bankruptcy discharge in a question and answer format, discussing the timing of the discharge, the scope of the discharge what debts are discharged and what debts are not discharged , objections to discharge, and revocation of the discharge.