Filing bankruptcy in texas
Bankruptcy is one of the major financial decisions that a person takes and such decisions should not be taken in haste. It is important that people filing bankruptcy should consider alternatives to pay of their debts and if there is no solution, then bankruptcy should be considered as the last option. Consumer bankruptcy can be filed under Chapter 7 and Chapter 13. According to the new laws of bankruptcy established in 2005 any individual who files for bankruptcy on or after October 17 2005 under any chapter is required to undergo credit counseling within 6 months before filing bankruptcy. Besides this after filing bankruptcy the person is required to attend a financial management course.
When you consider filing bankruptcy in Texas then you are supposed to follow the federal as well as state laws. Let us see the different chapters under which you can file bankruptcy in Texas.
Chapter 7 Bankruptcy
This is the simplest and the quickest form of bankruptcy. In this type of bankruptcy the trustee would liquefy your assets and pay off the creditors. According to the new bankruptcy reforms you are required to undergo a means test, which would determine whether you are a candidate for Chapter 7 bankruptcy or not.
Besides this you are also required to attend credit counseling before you can file bankruptcy. Also you are required to file any unpaid tax returns within weeks of filing a Chapter 7 bankruptcy. The fee for filing chapter 7 bankruptcies is $299.
When you file chapter 7 bankruptcies your creditors are prevented making any sort of collections on the debt. You are required to attend a creditor meeting within 20-40 days of filing the bankruptcy petition. Here the trustee would ask you about your debts and assets. You are required to be attentive in this meeting and provide all the details to the trustees. The creditors have a time period of 60 days after this meeting to persuade the bankruptcy court that you should no be allowed to file bankruptcy.
Chapter 13 Bankruptcy
This bankruptcy can be filed by, individuals as well as sole proprietors. By filing under this chapter you can pay off your debts all or partially over a period of 3-5 years. For filing bankruptcy under chapter 13 you are required to have a steady source of income with some disposable income (income that is left after paying the bare necessities of life such as shelter, food and utilities). You are also required to have no more than $1,010,650 in secured debt and $336,900 in unsecured debt.
Filing bankruptcy under Chapter 13 requires you to be accompanied by a proposed payment plan. This plan must provide you for the payment of all "priority claims," such as taxes, in full. The trustee appointed by the court is required to review the plan for flexibility and accuracy. This plan is distributed among the creditors and those who have the rights can object to it. If the plan is approved then you can keep your assets during the payment plan. You are required to make monthly installments to the bankruptcy trustee and then he or she would distribute the amount among the creditors.
Starting the process of bankruptcy in Texas
When you start the process of filing bankruptcy in Texas then you are required to first organize your paperwork. You should mention your current income sources; major financial transactions for the last two years ; monthly living expenses; debts (secured and unsecured); and property (all assets and possessions). Besides this you are also required to collect your tax returns for the past 2 years, any deeds to the real estate that you own, car titles and all the documents for the loans that you are supposed to pay.
Once all the information is gathered then either with the help of an attorney or on your own you should determine which properties can be exempted based on the Texas exemptions. You can get information about the Texas exemptions from www.texasbankruptcylaw.com/exemptions.html. To filing bankruptcy you are required to file a two-page petition and other forms at the Texas District bankruptcy court. The cost for filing a Chapter 7 bankruptcy is $274 and for chapter 13 it is $189.
Taking the help of an attorney
When you opt to file bankruptcy in Texas then it is advised that you take the help of an attorney so that you can be guided properly on the process of bankruptcy and other details. Some of the bankruptcy attorneys in Texas are mentioned below.
Polk Law Firm:
They take up chapter 7 and 13 bankruptcy cases and provide debt relief and filing services. They have helped a number of clients in coming out of bankruptcy. You can contact them at 100 N. Central Expressway, Suite 1018, Dallas, Texas 75201; Ph: 214-742-9805; Fax: 214-742-7212.
Ted Machi:
Fulwiler Law, P.C:
They specialize in bankruptcy cases. You can contact them at 1411 West Avenue
Austin, TX 78701; Phone: (512) 236-8880; Fax: (512) 474-5594; e-mail:Info@FulwilerLaw.com
Mr. Hercules:
He is experienced in handling corporate as well as personal bankruptcy cases. He takes up chapter 7, 11 and 13 bankruptcy cases. You can contact him at 1400 Preston Road, Suite 280 ? Plano, Texas 75093; Telephone (972) 964-9757; Fax (972) 964-0120; Email: larryhercules@comcast.net.
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