How Bankruptcy Works in Texas | Nolo
Under Chapter 7 you can usually keep the collateral, especially if you are current, or can get current within a few weeks. In the simplest Chapter 7 case, you can surrender the collateral and usually owe nothing, or you can keep it if you are current or close to current on your secured debt and are willing to reaffirm keep paying that debt.
In most Chapter 7 cases, all debts are discharged— legally written off—with certain exceptions. There are two kinds of exceptions, one that involves your right to a discharge of ANY of your debts, and another that involves your ability to discharge certain specific debts.
In the unusual event that a debtor hides assets or lies to the bankruptcy court or trustee in some other significant way, that debtor could potentially lose the ability to get a discharge altogether.
How to File Bankruptcy in Texas for Free
Also, filing a new bankruptcy case too soon after an earlier one could result in no discharge of debts in the new case. Certain specific kinds of debts are never discharged— child and spousal support , for example. Some kinds of debts which are only discharged under very specific or limited circumstances—income taxes and student loans, for example. In the simplest Chapter 7 case, you qualify for a discharge, and all your debts are in fact discharged. Through this plan you usually pay back only part if any of your debts, and sometimes only a little to some of your creditors.
Your plan states how much you pay each month — almost always much less than you were paying before. You pay that amount for a period usually covering three to five years, and at the end of that time you no longer owe any debts, except long-term ones like your home mortgage, if you so choose, and student loans. The rest of the unpaid debts are discharged, or legally written off, and you are debt-free. Your proposed plan is built around a detailed set of laws about how you must treat each kind of debt.
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Secured debts , like your mortgage s , vehicle and furniture loans, are treated in a special way, whether these are paid in full or in part depending on many factors. Especially with priority and secured debts, Chapter 13 usually gives you significant advantages over how these creditors are handled compared to Chapter 7.
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:.
Three Benefits Of Filing Bankruptcy In Texas
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.primramona.ml
Which Type of Bankruptcy Should You File? Chapter 7 vs. 13
Discuss your situation and your options with an experienced bankruptcy lawyer. People with higher incomes can qualify if they have high expenses, such as a high mortgage payment. If you are considering bankruptcy, your credit might already be in bad shape.
A bankruptcy notation on your credit report warns future creditors that you did not pay your debts as agreed. Restoring credit after a Chapter 7 can take some time and effort. With the exception of past due child support, you can't be put in jail for failing to pay a debt. If you are not judgment proof, you can negotiate a payment agreement with your creditors before filing for bankruptcy.
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