Bankruptcy Lawyers Texas

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is often called “liquidation” bankruptcy. People usually choose this chapter when they do not have enough income to repay their debts. Most debts in Chapter 7 are eliminated and completely discharged. However, you may have to sell some property in order to repay creditors. You must qualify for Chapter 7 via a Means Test that will determine if your income meets guidelines to file Chapter 7. A bankruptcy attorney can walk you through the Chapter 7 process and help you take the means test.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy, often called “reorganization” bankruptcy, may be used to manage debt over a three to five year payment period. If you have enough income to repay most of your debts but need structure in which to do that, Chapter 13 may be an option for you. Your debts may not exceed certain limits; however, most people who do not qualify for Chapter 7 can utilize the Chapter 13 bankruptcy process.

The Bankruptcy Process

The process of filing bankruptcy can be complex. You must submit specific forms and provide a plethora of information to the bankruptcy court. There are court hearings and legal procedures that you must follow. A skilled bankruptcy attorney can guide you through the process and help you understand your legal options.

Steps in the bankruptcy process include the following:

Step 1: Complete a credit counseling course.

Within 180 days prior to filing for bankruptcy, you must complete a credit counseling course. The U.S. Trustee’s office must approve the course, and it can cost between $25 and $35 for the course. If you cannot afford a credit counseling course, you may qualify for discounts or a free course.

Step 2: File your bankruptcy petition with the federal court.

You must file a petition for bankruptcy along with a filing fee with the federal bankruptcy court in your jurisdiction. You must also submit information about your income, debts, and any assets you own. The bankruptcy court will quickly issue an automatic stay order, which will pause all creditor collection efforts. If you are dealing with a foreclosure or repossession, these will stop. Calls, emails, and other contacts from creditors will also be routed to your bankruptcy attorney. An automatic stay will not be put into place or will be limited if you have already filed for bankruptcy once or more within the last 12 months.

Step 3: Attend a 341 Meeting of Creditors.

Within 60 days of when you file your bankruptcy petition, you will attend a hearing called the “meeting of the creditors.”  This hearing will not take place in a court, but will likely be in a meeting room. Your bankruptcy trustee, attorney, and creditors may appear at the hearing. However, it is rare for creditors to actually attend the meeting of the creditors. Typically, you answer questions from the trustee and review information that you submitted with your bankruptcy petition.

Step 4: Take a second debt counseling course.

After your meeting of the creditors, you will have to take a second debt counseling course. This will help you understand your current budget and how to manage your debts going forward.

Step 5: The court will confirm your eligibility to file bankruptcy.

The {bankruptcy|insolvency|personal bankruptcy} court {will|will certainly} {review|evaluate|examine|assess} your {information|info|details} {along with|together with|in addition to} {any|any type of|any kind of} {challenges|difficulties|obstacles} {presented|provided|offered} at the {meeting|conference} of {creditors|lenders|financial institutions}. If you are {filing|submitting} Chapter 7, the {bankruptcy|insolvency|personal bankruptcy} court {will|will certainly} {ensure|guarantee} you pass the Means Test. If you are {filing|submitting} Chapter 13, the {bankruptcy|insolvency|personal bankruptcy} court {will|will certainly} {review|evaluate|examine|assess} the {amount|quantity} of your {secured|protected|safeguarded} {and|as well as|and also} {unsecured|unprotected|unsafe} {debts|financial obligations|financial debts} {and|as well as|and also} {determine|identify|figure out|establish} if you {qualify|certify}.

Step 6: The court will manage your debts.

{If you are {eligible|qualified} for {bankruptcy|insolvency|personal bankruptcy}, the court {will|will certainly} {handle|manage} your {debts|financial obligations|financial debts} according to the {chapter|phase} of {bankruptcy|insolvency|personal bankruptcy} that you are {requesting|asking for}. If you are {filing|submitting} Chapter 7, the court {may|might} {require|need} you to {liquidate|sell off} {some of|a few of|several of} your {property|residential or commercial property|home|residential property|building} to pay your {creditors|lenders|financial institutions}. When {filing|submitting} Chapter 13, you {may|might} {have to|need to} {submit|send} {a proposed|a suggested} {{payment|repayment|settlement} {plan|strategy}|layaway plan}. {In the end|In the long run|Ultimately}, the court {will|will certainly} {require|need} you to pay {necessary|required|needed|essential} {debts|financial obligations|financial debts} {and|as well as|and also} {receive|get|obtain} a discharge of {eligible|qualified} {debts|financial obligations|financial debts}.|If you are {eligible|qualified} for {bankruptcy|insolvency|personal bankruptcy}, the court {will|will certainly} {handle|manage} your {debts|financial obligations|financial debts} according to the {chapter|phase} of {bankruptcy|insolvency|personal bankruptcy} that you are {requesting|asking for}. If you are {filing|submitting} Chapter 7, the court {may|might} {require|need} you to {liquidate|sell off} some of your {property|residential or commercial property|home|residential property|building} to pay your {creditors|lenders|financial institutions}.}

What Types of Debt Can Be Discharged?

You {can’t|can not} {discharge|release} all {debts|financial obligations|financial debts} {through|with|via} {bankruptcy|insolvency|personal bankruptcy}. There are {certain|specific|particular} {{types|kinds} of|kinds of|sorts of} {debt|financial obligation|financial debt} that are “dischargeable” {and|as well as|and also} others that are “nondischargeable.” {A knowledgeable|A well-informed|An experienced|An educated} {bankruptcy|insolvency|personal bankruptcy} {attorney|lawyer} can {review|evaluate|examine|assess} your {debt|financial obligation|financial debt} {and|as well as|and also} {help|assist|aid} you {understand|comprehend|recognize} which {{types|kinds} of|kinds of|sorts of} {debt|financial obligation|financial debt} you are {dealing with|handling|taking care of|managing}.

You can {completely|totally|entirely} {{wipe|clean} out|erase|eliminate} {debts|financial obligations|financial debts} that are dischargeable {through|with|via} {bankruptcy|insolvency|personal bankruptcy}. You do not {have to|need to} {repay|settle} them {at all|whatsoever|in any way|in all}; {moreover|furthermore|additionally|in addition}, the {creditors|lenders|financial institutions} can not {harass|bother|pester|bug} you to {collect|gather|accumulate} them. Dischargeable {debts|financial obligations|financial debts} {include|consist of} {medical|clinical} {bills|expenses|costs}, {{credit|credit rating|credit scores|credit history|credit report|credit score|debt} card|charge card|bank card} {debt|financial obligation|financial debt}, {personal|individual} {loans|lendings|car loans|fundings|finances|financings}, {and|as well as|and also} {utility|energy} {bills|expenses|costs}.

Nondischargeable {debt|financial obligation|financial debt} can not be {done away with|eliminated|gotten rid of} {through|via} {bankruptcy|insolvency|personal bankruptcy}; {however|nevertheless|nonetheless}, you {may|might} {be able to|have the ability to} {manage|handle|take care of} these {debts|financial obligations|financial debts} {through|with|via} your Chapter 13 {repayment|payment|settlement} {plan|strategy}. {Examples|Instances} of nondischargeable {debt|financial obligation|financial debt} {include|consist of} some {tax|tax obligation} {debt|financial obligation|financial debt}, {alimony|spousal support}, {child|kid|youngster} {support|assistance}, {and|as well as|and also} {student|trainee|pupil} {loans|lendings|car loans|fundings|finances|financings}.

Alternatives to Bankruptcy

If you are {unsure|uncertain|not sure|unclear} of what to do {about|regarding|concerning} your {debt|financial obligation|financial debt}, {a bankruptcy|an insolvency|a personal bankruptcy} {attorney|lawyer} can {inform|notify|educate} you of your {options|choices|alternatives}. While {bankruptcy|insolvency|personal bankruptcy} {may|might} not be the {right|best|ideal|appropriate} {choice|option|selection} for you, {a lawyer|an attorney|a legal representative} can {guide|direct|assist|lead} you {through|with|via} your {options|choices|alternatives}, which {may|might} {include|consist of} {debt|financial obligation|financial debt} {consolidation|combination|loan consolidation}, {negotiation|settlement|arrangement} to {decrease|reduce|lower} {debt|financial obligation|financial debt} {amounts|quantities}, restructuring of {loans|lendings|car loans|fundings|finances|financings}, {and|as well as|and also} {more|much more|a lot more|extra}.

Start Your Relief Process Today by Contacting a Texas Bankruptcy Attorney

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