If you file Chapter 7 bankruptcy, there is a "trustee" appointed by the Bankruptcy Court to take all of your "non-exempt" property and sell it, and use the money to pay the crediitors. But here in Texas, much or all of what most people own can be claimed as "exempt" or safe from the trustee. Why is that? Frankly, Texas was settled by people who had big debt problems! Because of this, any bankruptcy you file must include both your personal and business debts and assets. Chapter 7 Bankruptcy for Sole Proprietors The biggest benefit of filing a Chapter 7 as a sole proprietor is that your qualifying business and personal debts will be discharged (wiped out) without you having to make payments over time. this Author: Cara O'neill, Attorney. Apr 09, · The state of Texas takes pride in doing things differently than the rest of the country. However, when it comes to bankruptcy, Texans will find some similarity in the process regardless of which region they file in.. The bankruptcy code is federal law, meaning it applies uniformly nationwide. For this reason, the experiences of debtors from one jurisdiction to the next are often very similar.
Related videosTEXAS BANKRUPTCY 101, Episode 1: What is Chapter 7 Bankruptcy in Texas?
If you, the debtor, file a case when you are ineligible, the court will swiftly dismiss the new case and impose a further period of ineligibility called a bar. Section of the Bankruptcy Code lays out who is eligible to be a debtor; that is, who may file a bankruptcy case, and under what chapter. Here are the two ways that dismissal of a prior case can prohibit you from filing a second case until the day period passes:.
Skip to main content. Toggle navigation. Search form. Filing for Bankruptcy More than Once. Printer-friendly version Can I file for bankruptcy more than once? How much time must pass before I can re-file for bankruptcy easily? Can I file for bankruptcy if I had a prior successful bankruptcy under eight years ago? What if I had one or more unsuccessful bankruptcy cases in the last year? When are you ineligible to file for bankruptcy again?
Back to top. If you have filed for bankruptcy before, you can get an automatic stay from your creditors as soon as you file for bankruptcy if you: Have not filed any cases in the last eight years that ended successfully; or Have had no cases dismissed in the last year. The easiest way to explain this possibility is with a made-up illustration. The general rule is simple: If you have had one case dismissed within the past year that is, the date of the dismissal order is less than one year ago , then you only get 30 days of automatic stay protection from your creditors.
If you want protection for longer than 30 days, file a Motion for Continuation the Automatic Stay telling the court why the new case was filed in good faith. You have to file a Motion to Impose an Automatic Stay telling the court why the new case is filed in good faith, including information such as what happened in the recent prior cases, and what has changed for the better since the other cases were dismissed.
This happens sometimes where the debtor is supposed to be making mortgage payments directly to the mortgage company but also is making separate payments to the Chapter 13 trustee under the Chapter 13 plan.
The debtor then sees this and files a Motion to Voluntarily Dismiss the entire bankruptcy, probably with an eye toward filing a new bankruptcy before the mortgage company can foreclose. But that strategy will not work.
The voluntary dismissal creates a day bar, so the debtor cannot file a second case until that day period runs. Related Articles:. Alternatives to Bankruptcy. Chapter 13 Bankruptcy - Fact Sheet. Chapter 7 Bankruptcy - Fact sheet. Generally these payments will be withdrawn directly from your wages and you or your attorney should arrange with the court for these payments to be deducted from your wages.
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. Chapter 13 Plan Confirmation If you filed a Chapter 13 plan, you will need to attend a hearing before a bankruptcy judge who will either confirm or deny the repayment plan. If your plan is confirmed and you make good on it, the balance if any on the dischargeable debts you owe will be eliminated at the end of your term.
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