Can One Spouse File Bankruptcy
Does a married couple have to file bankruptcy together, or can just one spouse file bankruptcy? Whether due to wanting to protect a loved one from stress and anxiety, embarrassment from bankruptcy when married, or financial strategizing, there a host of reasons why a spouse may wish to file bankruptcy independently of their husband or wife.
We discuss the possibilities and best courses of action for claiming bankruptcy when married and answer if you can file bankruptcy separately from your spouse, in the following article. Reach out to our Houston bankruptcy lawyers today for more guidance on your specific case.
What Are The Steps To Filing A Chapter 13 Bankruptcy
Generally speaking, the initial process of filing a Chapter 13 bankruptcy is, more or less, similar to filing a Chapter 7 bankruptcy. It doesnât get much more complicated until you reach the point at which you have to properly calculate what your monthly Chapter 13 payments will be based on a number of different factors.
Advantages To A Chapter 7 Bankruptcy
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Rebuild Your Credit After Filing Bankruptcy
Unfortunately, Chapter 7 bankruptcy can negatively impact your credit;and Chapter 13 can negatively impact your credit. That said, you have an opportunity to rebuild your credit shortly after bankruptcy. To assist, you can use our free credit rebuilding portal designed to help you increase your credit score by 100 points in less than 6 months.;
Choosing The Right Bankruptcy Chapter For You In Texas
Most people file either Chapter 7 or Chapter 13. If you don’t know the differences between the two, you’re not alone. The short explanation below and our handy Chapter 7 versus 13 chart will help clear things up.
Chapter 7 bankruptcy.Chapter 7 is often a bankruptcy filer’s first choice for several reasons. It’s quickit only takes a few months to complete. And it’s cheapyou don’t pay anything to creditors. It works well for those of us whose property consists of the essential items needed to live and work.
People with more assets could lose them, however, especially if they own unnecessary luxury items. For instance, you might have to give up your RV, baseball card collection, or timeshare in the Bahamaseven your house or vehicle if you have too much equity in it or you’re behind on the payments. Unlike Chapter 13, Chapter 7 doesn’t have a payment plan option for catching up on late mortgage or car payments. So you could lose your home or car if you’re behind when you file.
Caution for businesspeople. Be sure to learn about the ins and outs of small business bankruptcies. The principles discussed apply to consumers only.
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What Is The Income Cut Off For Chapter 7
If your annual income, as calculated on line 12b, is less than $84,952, you may qualify to file Chapter 7 bankruptcy. If its greater than $84,952, youll have to continue to Form 122A-2, which well review in the next section. It should be noted that every state has different median income calculations.
Filing For Bankruptcy Yourself
You dont have an attorney to file for bankruptcy. But it isnt always a good idea to go it your own, either. Whether it would be in your best interest to hire a lawyer typically depends on:
- whether you can afford an attorney, and
- how comfortable you are with researching the necessary legal information and representing yourself.
In many cases, if you have little or no income or property, you might be able to file a successful Chapter 7 bankruptcy on your own. The instructions on the official bankruptcy forms are straightforward, which makes them relatively simple to complete. However, the forms dont explain what will happen in your case.
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Who Can File Chapter 7
Chapter 7, if filed by a person or a married couple, is only available to people whose income is below the median income for their state and family size. As of November 1, 2016, the median income for Texas debtors was $46,127 , $60,935 , $64,894 , $75,885 , and so on, with an additional $8,400/person added on for households of five or more.
Avoid Failing To Complete Bankruptcy Education Requirements
If you want to file for bankruptcy and receive a discharge, you must complete credit counseling and debtor education requirements.
- Before you can file for bankruptcy, you are required to receive credit counseling from an approved agency. When you file your case, you will need to submit your certificate of completion to the court. If you don’t obtain credit counseling before filing your bankruptcy, the court will typically dismiss your case.
- Debtor education. After you file your case, you must also complete a personal financial management course . If you don’t satisfy the debtor education requirement, the court will not issue a discharge in your bankruptcy.
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Chapter 12 Bankruptcy For Texas Farmers And Ranchers
Chapter 12 of the U.S. 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.
Colorado Frequently Asked Questions Colorado Bankruptcy
It now costs $306 to file for bankruptcy under chapter 7 and $281 to file for bankruptcy under chapter 13, whether for one person or a married couple. The court;
You do not have to have a bankruptcy lawyer to declare bankruptcy. Nope. You can represent yourself. In fact, approximately 15% of all individuals who file;
You do not have to have a bankruptcy lawyer to declare bankruptcy. Nope. You can represent yourself. In fact, approximately 15% of all individuals who file;
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Avoid Filing Bankruptcy If Youll Receive Future Payments
Funds that are not actually in your possession but which you expect to get in the future are part of your bankruptcy estate. If you are filing for Chapter 7 bankruptcy, the Chapter 7 trustee can take this money and use it to repay your unsecured creditors. Examples include agreeing to accept a future bonus at work, getting an inheritance youll receive in the future, or filing tax returns that entitle you to a refund. If you anticipate receiving any payments or money in the future, talk to a bankruptcy attorney.
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How To File An Emergency Bankruptcy Petition
If you dont file within the period, the court will dismiss the bankruptcy case without prejudice . Talk to a Bankruptcy Lawyer.
Q: With booming housing market, can I sell my house for over the homestead exemption? I have gotten my discharge in chapter 7, but I am considering filing for a;
Thats when its time to hire a Denver Chapter 7 bankruptcy lawyer and review your When it comes to businesses filing for bankruptcy in Colorado,;
Willful and malicious here means deliberate and without just cause. In Chapter 13 bankruptcy, this applies only to injury to people; debts for property damage;
Learn about filing for bankruptcy in Texas from a Houston bankruptcy lawyer. If you have overwhelming debts, call us for a consultation. 888-5581.
Dec 1, 2020 Filing Bankruptcy in Colorado A person without a steady income is not eligible to file a Chapter 13 bankruptcy.
If you file in Colorado, it helps to have links to your local bankruptcy help you successfully complete your bankruptcy claim without breaking the bank.
Sep 15, 2016 An experienced bankruptcy attorney is necessary to weigh your options. 3. Credit Report. The bankruptcy filing will only appear on the filing;
Once you file a Chapter 7 bankruptcy, your creditors are immediately prohibited from any further collection activity against you without first obtaining;
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Dealing With Your Car
How to deal with your car or truck when filing Chapter 7 bankruptcy in Texas is one of the most important questions folks usually have. After all, you need your car to get around, go to work, pick up kids from school and do all those things that make the Lone Star State great.
If your vehicle is paid for, itâs yours to keep as long as you are able to claim an exemption for its full value. If you still owe on a car loan, which is considered a secured debt, a Chapter 7 bankruptcy allows you to keep the car by entering into a reaffirmation agreement. Of course, if the car loan balance is much higher than the value of the vehicle, you can surrender the car. Unlike a repossession outside of bankruptcy, youâll not have to pay the unsecured portion of the loan – thatâs discharged. Finally, if youâre able to raise some funds to buy your vehicle for its current value, you can do that as well.
Take Second Mandatory Debt Education Course
You must take a second mandatory debt education course in Texas before filing for discharge. Once you receive the certificate of completion, your attorney or you would add that into your filing to show proof of completion.
See the list of approved debtor education courses in Texas. Once filed, you now just have to wait for discharge.
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Learn The Steps For Discharging Your Debt In A Chapter 7 Filing
Struggling with debt can be overwhelming and frightening. Getting out from under it shouldnt be. In fact, it should be a relief and a fresh start. Rest assured, at The Law Offices of CherylS. Davis, P.C., I will guide you through the Chapter 7 bankruptcy process, which lets you discharge your debt and start from scratch. Because Chapter 7 bankruptcy is costly to creditors, thefiling is not taken lightly, and not everyone is eligible. But I will explain each step and answer all your questions if this filing is your best option for resolving your debt. You deserveto be fully informed, so you can confidently move forward. My firm maintains office locations in El Paso and the Dallas Metroplex area.
Follow Your Choice About Any Collateral
Under Chapter 7 you generally have the choice to either surrender collateralyour home, car, truck, or whatever you purchasedor to keep that collateral by catching up and keeping up on your payments on the debt.
The immediate advantage of surrendering collateral under Chapter 7 is that you can stop making payments on that debt, and also stop paying related expenses, like insurance on a vehicle loan . But you also almost never have to pay any of the remaining deficiency balance, the amount you would often still owe after your creditor sells the surrendered collateral and credits the proceeds to your account.
Under Chapter 7 you can usually keep the collateral, especially if you are current, or can get current within a few weeks. In some situations, you might want to enter into a reaffirmation agreement whereby you reaffirm your debt, excluding it from the discharge of your other debts.
In the simplest Chapter 7 case, you can surrender the collateral and usually owe nothing, or you can keep it if you are current on your secured debt and are willing to reaffirm that debt.
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How Much Cash Can You Keep When Filing Chapter 7 In Texas
This means that if you can drive a car, you have a right to protect one car through the Chapter 7 bankruptcy process in Texas. Texas bankruptcy law also allows for debtors to protect $50,000 of personal property for a single filer or $100,000 of personal property for a family.
Information For Debtors Without Attorney Representation
USEFUL INFORMATION FOR DEBTORS WITHOUT ATTORNEY REPRESENTATION
Individuals can file bankruptcy without an attorney, which is called filing pro se. However, seeking the advice of a qualified attorney is strongly recommended because bankruptcy has long-term financial and legal outcomes. We strongly recommend you watch the following videos and review written instructions under this link. This information will provide you with a better understanding of the bankruptcy process, the different chapters under which a bankruptcy case may be filed and can assist you in determining if this is the best option for you.
Click here to view the Bankruptcy Basics videos.
Filing personal bankruptcy under Chapter 7 or Chapter 13 takes careful preparation and understanding of legal issues. Misunderstandings of the law or making mistakes in the process can affect your rights. Court employees and bankruptcy judges are prohibited by law from offering legal advice.
The following is a list of ways your lawyer can help you with your case.
Pro se litigants are expected to follow the rules and procedures in federal courts and should be familiar with the United States Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, and the local rules of the court in which the case is filed.
What is Required to File a Bankruptcy Case?
If requesting a permanent exemption from credit counseling, the following must be filed. BTXN 195 Request for Permanent Exemption From Credit Counseling
Social Security Card
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Filing For Bankruptcy In Texas Without A Lawyer
Filing For Bankruptcy In Texas Without A Lawyer. How to file bankruptcy without a lawyer? Application to pay filing fee in installments (note:
The trustee is also the person that will be asking you questions at your 341 meeting. There are so many factors that weigh on an important decision like filing a bankruptcy case on your own, and much depends on the complexity of the case. The information here is sourced well and enriched with great visual photo and video illustrations. Unlike a business bankruptcy, an individual debtor doesnt need an attorney to file for bankruptcy relief. Get more information filing bankruptcy in texas without a lawyer.
Avoiding Exemption Issues In Texas
If you don’t exempt your property carefully, you could lose it. Answers to these questions might help you steer clear of common issues.
Do I automatically get to keep exempt property? Generally, no. Here’s the procedure you’ll need to follow: You’ll select the exemption set that best protects your property, list the exempt assets and applicable exemption laws on Schedule C: The Property You Claim as Exempt, and file it with your other required paperwork.
Will someone check my exemptions? The bankruptcy trusteethe court-appointed official tasked with managing your casewill review Schedule C to ensure that you have the right to protect the claimed property. A trustee who disagrees with your exemptions will file an objection with the court. The judge will decide whether you can keep the property.
Example. Jeff owns a rare, classic car worth $15,000, but the state vehicle exemption won’t adequately protect it. Believing that the car qualifies as artat least in his mindJeff exempts it using his state’s unlimited artwork exemption. The trustee reviews Schedule C, disagrees with Jeff’s characterization and files an objection with the court. After consideration, the judge will likely side with the trustee, determining that the vehicle doesn’t qualify as a piece of art.
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Follow The Chapter 13 Payment Plan
If you filed a Chapter 13 bankruptcy, you now need to do what you promised you would in your proposed payment plan. You will need to attend an additional hearing where the trustee will confirm or deny your repayment plan. For the next 3 to 5 years, you will need to pay the bankruptcy trustee the promised money, which he or she will distribute to your creditors. The remaining balances wont be discharged unless you successfully complete the plan or your attorney requests a hardship modification.
How Many Times Can You File Bankruptcy In Texas
Can you file bankruptcy more than once in Texas?
The Bankruptcy Courts set no limit on how many times you can file for bankruptcy in Texas, understanding that the program was designed by our federal government to provide people struggling with their debts a fresh start. However, the courts do apply a greater degree of scrutiny to returning filers when it comes to granting discharges of debts.
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