Can I Keep My Car If I File Bankruptcy In Texas
Can I file bankruptcy and keep my car in Texas? Most likely yes.
In the State of Texas, there are several options for filing bankruptcy and keeping your car, motorcycle, SUV, or other personal vehicle. If you take no actions on your vehicle loan when you file for Chapter 7 or Chapter 13 bankruptcy, you may be relieved of your obligation to repay your car loan afterward, and your car also will most likely not be repossessed.
This is due to Texas generous personal vehicle exemption, which protects your much-needed personal vehicle from repossession. You can also reaffirm your car loan or redeem the vehicle, which are recommended actions.
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How To File For Bankruptcy
The process of filing for bankruptcy can be complicated, so its best to consult with a lawyer. However, here is a general overview of how to file for bankruptcy. First, youll need to gather all of your financial information. This includes your income, assets, and debts. Next, youll need to file a petition with the bankruptcy court. This petition will list your financial information and the type of bankruptcy youre filing. After you file your petition, youll need to attend a meeting with your creditors. During this meeting, your creditors will have a chance to object to your bankruptcy. If they do object, theyll need to prove that you cant repay your debts. After the meeting, the court will make a final decision on your case. If youre approved, youll then need to go through bankruptcy proceedings. This includes attending mandatory credit counseling and submitting a repayment plan. Finally, after youve completed all of these steps, your bankruptcy will be finalized and youll be debt-free.
Get Help From Acclaim Legal Services
As you can see, there are many reasons why re-filing a bankruptcy may be necessary and beneficial. Further, there are several variables and nuances that dictate when and what protections can be established by a re-filed bankruptcy.
Contacting an experienced bankruptcy attorney should be your first step in the process of exploring your options on how many times can you file bankruptcy. We offer free same-day bankruptcy evaluations.
Please call us toll free at 866-261-82822 or schedule a consultation right now.
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How Often You Can File Under The Same Bankruptcy Chapter: Chapter 7 And Chapter 13
These are the same timeframes found in the chart above, but here you’ll find examples to help you calculate when you’ll qualify for another discharge.
- You can file a second Chapter 7 in eight years. Begin counting from the filing date of your previous Chapter 7. For example, Bella filed for Chapter 7 bankruptcy on August 1, 2015. She’ll qualify for another Chapter 7 discharge if she files on or after August 1, 2023.
- You can file a second Chapter 13 in two years. Begin counting from the filing date of your previous Chapter 13. Les filed Chapter 13 on November 1, 2020. He’ll be eligible for another Chapter 13 discharge on or after November 1, 2022.
Could Chater 11 Apply To An Individual
Although Chapter 11 is the most common type of bankruptcy filed by businesses, it can be used by individuals as well. An individual may file Chapter 11 if a high level of disposable income places them outside of the debt limit for a Chapter 13 or Chapter 7. A high-profile or high net worth individual is more likely to file a Chapter 11 bankruptcy than would someone in a typical financial situation.
More commonly, Chapter 11 allows a business to remain active while paying creditors over a specified period of time.
To do this, the business will file a voluntary or involuntary petition with the bankruptcy courtvoluntary petitions are filed by the debtor, whereas involuntary petitions are filed by the creditors, but not until after certain criteria have been met. Generally speaking, the debtor will then have about four months to establish a reorganization plan for going forward. If it sees fit, however, the court may extend this period to up to 18 months.
The purpose of the reorganization plan is to prioritize certain debts and creditors by placing them into different classes. Unsecured claims, for example, would be in their own class. If you believe that filing Chapter 11 bankruptcy may be the best option for your business, it is in your best interest to speak with an attorney who specializes in bankruptcy law.
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What Happens If You File Bankruptcy Under Chapter 11
Under Chapter 11, the bankruptcy court approves a collection plan that provides for full or partial payment of the debt, depending on the priority and nature of the debt. Chapter 12 is designed to enable family farmers to pay off their debts with future income over a period of time. This is a lot like registering for Chapter 13.
Complaints Seeking Revocation Of Discharge Will Require Retaining Counsel
Keep in mind that the mere filing of an adversary proceeding seeking to revoke the discharge will require hiring an attorney to answer the allegations of improper conduct. If these allegations are not addressed in a timely fashion, the debtor will lose their discharge by default.
The possibility that a bankruptcy discharge can be revoked highlights the importance of full disclosure to your bankruptcy attorney. You must inform your bankruptcy attorney of all assets and debts in order to ensure that your discharge is not subsequently challenged.
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How Many Times Can I File For Bankruptcy
This depends on the type of bankruptcy you file for.
A Chapter 7 bankruptcy petition:
- Can only be filed once every eight years. The eight years starts from the filing date, not the discharge date.
- Can be filed anytime after the completion of a Chapter 13 case, unless the unsecured creditors in the Chapter 13 case received less than 70 percent of their claims, in which case there is a six-year waiting period.
A Chapter 13 bankruptcy petition:
- Can be filed anytime after the completion of a Chapter 7 case. Although, if it is filed less than four years after the Chapter 7 filing, the debtor will not be eligible for a discharge at the end of the case.
- An additional Chapter 13 bankruptcy petition can be filed anytime after the completion of a Chapter 13 case, unless the case lasted less than two years, in which case the debtor would have to wait until the two years is up.
All of these scenarios assume that the first case was completed and discharged. If the first case was dismissed, as opposed to discharged, then there is no time bar to refiling, except in certain situations.
If you have had a case dismissed within the last year, there may be some issues with refiling, depending on the circumstances. If you have this situation, contact our firm online, Schwartz Bankruptcy Law Center, to schedule a free initial consultation and discuss your situation and debt relief options.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
What To Do If You Think Time Limitations May Apply In Your Case
If you have filed bankruptcy before and feel you may need to file again, you should consult a bankruptcy attorney who can walk you through your options and help you determine your best course of action.
Most attorneys will provide a free initial consultation, said Yesner. However, you should make sure that the bankruptcy attorney you speak with also provides other non-bankruptcy solutions to prevent being forced to file when that solution may not be best or most appropriate for your finances.
Before you meet with an attorney, it can help to gather some information on your previous bankruptcy. Create a file of paperwork of earlier bankruptcies that includes information on dates and debts discharged. Also, ask yourself about your goals. Do you want to eliminate debt? Save your home? Stop creditors from calling?
If you find you cant file for bankruptcy again for several years, dont despair. Fleischman said there might be other options to consider that could leave you better off. Depending on your reason for considering bankruptcy in the first place, those alternatives may include:
- Dealing with creditors directly
- Settling debts
- Engaging in administrative remedies such as income-driven repayment on federal student loans and offer in compromise for tax debts
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Refresher On Chapter 7 Vs Chapter 13 Bankruptcy
Since the amount of time you must wait before filing for bankruptcy again depends primarily on the type of proceeding, its worthwhile to quickly review Chapter 7 and Chapter 13 filings.
A bankruptcy lawyer can help you decide which type of bankruptcy is best for your situation, including by directing you toward a mandated, pre-filing course.
Filing Bankruptcy After Your First Case Was Dismissed
If you filed a Chapter 13 bankruptcy case and the case was dismissed, you can file a new bankruptcy case right after the dismissal. However, the automatic stay expires after 30 days unless you file a Motion to Extend the Automatic Stay with the Bankruptcy Court.
If you have two prior Chapter 13 Bankruptcy cases that were dismissed within the last year, then the Bankruptcy Stay is not effective against creditors who are going after your property or taking action against your estate. A Motion needs to be filed by the Attorney on behalf of the filing debtor with the Bankruptcy Court in order to impose or the Automatic Stay against all creditors.
The importance of this provision means that a creditor can take action without the need to ask the Bankruptcy Court for relief from the automatic stay, or permission to proceed, unless you obtained an Order imposing the automatic stay.
There is another rule. You are not eligible to be a debtor for a period of 180 days if you were a debtor in a previous case and you withdrew the Bankruptcy Petition by filing for a voluntary dismissal of your prior case following the filing of a Motion for Relief from Automatic Stay by a creditor in the case.
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Bankruptcies Can Be Revoked Seek Legal Advice
Bankruptcy courts have the right to revoke a bankruptcy or discharge. There are specific conditions for the various types of bankruptcy. Chapters 7, 11, 12 and 13 all have their own unique reasons for why they can be revoked.
Revocation of Chapter 7
A trustee, creditor, or the U.S. trustee may submit a request to the bankruptcy court that a discharge or bankruptcy be revoke based on an allegation against the debtor.
Explanations of the Reasons Bankruptcies Can Be Revoked:
If you are considering filing for bankruptcy again, then you should take advice. Youll need to file with the court and must be certain that you are filing correctly and discharges are applicable.
You should also be aware of the With Prejudice rulings, and how they affect your ability to file for bankruptcy.
AllLaw has excellent resources online to help you navigate this tricky legal procedure. They have an interactive calculator that can help you establish the best next step based on the amount of money you owe. Their resource also clearly and simply explains the various types of bankruptcy and what you can do if the court has dismissed a previous case with prejudice.
Getting A Discharge In The Second Chapter 13
If you received a Chapter 13 discharge and want to file Chapter 13 again with the goal of receiving a discharge, then you need to wait for two years from the date that you filed the first Chapter 13 case. As a practical matter, most Chapter 13 cases that receive a discharge last between three and five years, so the two-year time delay is not really a barrier.
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What Happens Again If I File Bankruptcy Again
The main goal of filing a bankruptcy is to settle your debt issues and having a fresh financial start. After realizing you can file multiple bankruptcies, the main question that remains unanswered is, how often the case you file will receive a successful debt discharge. The laws allow you to file as many bankruptcies as you can. However, itll be great to get the timing right between the discharges to be successful.
To prevent individuals from merely abusing the bankruptcy process by using it to get out of debts. The courts use the Bankruptcy Abuse Prevention and Consumer Protection Act. The law prevents individuals from filing multiple bankruptcies only to get out of the debts they owe people or firms. The law only allows individuals to file chapter 7 bankruptcy more than once if they fall into a certain income bracket. In addition, he must prove that he cant afford a certain payment plan for the debt. If he doesnt meet the requirements, the law will bar him from filing the case or choose to file a chapter 13 bankruptcy case.
To manage how often someone can file a bankruptcy case, the laws regulate the duration between the filings. Despite being able to file for bankruptcy multiple times, youll only receive the subsequent discharges after an appropriate amount of time has passed. Lastly, the law allows individuals to file for bankruptcy between the two chapters.
Filing For A Subsequent Ny Bankruptcy
A debtor can file for NY bankruptcy as many times as needed or necessary. There are no restrictions in the federal bankruptcy laws or NY state law that prevent filing for a subsequent bankruptcy. In theory, someone could file for NY bankruptcy seven, eight, or even nine times. However, it is very unlikely that the same person will file for individual bankruptcy more than two times.
While there isnt any direct or explicit restriction on filing for subsequent bankruptcies, the Bankruptcy Act does place some restrictions on the timing and procedure for filing for a subsequent bankruptcy.
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How Often Can You Declare Bankruptcy
How many times can an individual file bankruptcy? Well, the reality is that you can file bankruptcy as many times as you like. The consequence is that the process will become increasingly restrictive, so other approaches may be more beneficial. If you file bankruptcy for a third time, you will need to attend a discharge hearing in a bankruptcy court. Here, they will ask you to explain to the judge why you filed bankruptcy three times, and they will then decide if you can be discharged. There could also be conditions including additional payments. If you find yourself in a situation where you repeatedly need to file bankruptcy, an experienced Licensed Insolvency Trustee can help you. At Spergel, our bankruptcy trustees have been helping Canadians become debt free for over thirty years, and we will offer credit counselling to help you with budgeting and financial management. Unlike other bankruptcy firms, you are assigned a trustee to walk you through the entire process, so we are a great first point of call when it comes to bankruptcy and getting your life back on track.
What Happens To Your Bank Account
When the bankruptcy order is made, you must:
- make sure you dont use your bank account
- give your cards and cheque books to the trustee
Your bank account will be frozen. Any money in your account will be an asset and claimed by the trustee. The trustee can ask to release some money:
- for your daily living needs
- to the other person in a joint account
The bank is allowed to use money from one of your accounts to pay your debts on another account you hold with them. This is called set off.
Otherwise, money owed to the bank is a bankruptcy debt, so you cant pay this to the bank directly. The exception is if the bank has a charge on your home .
Open a new account
You can open a new bank account after the date of the bankruptcy order but you must tell the bank or building society that youre bankrupt. Some banks will let you use your old account after theyve spoken to the trustee.
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If Your Previous Bankruptcy Was A Chapter 7
If you previously filed Chapter 7 bankruptcy successfully, this means you may have had some of your assets liquidated to pay off delinquent debts. You also had debts included in your bankruptcy discharged.
If you are in a position where you are once again struggling to repay delinquent debts, you must wait at least eight years before you can file for Chapter 7 bankruptcy again. Keep in mind, however, that the eight years begins from the original date of filing and not the original date of the first Chapter 7 bankruptcy discharge.
You may, however, file a Chapter 13 bankruptcy and receive a discharge after a successful Chapter 7 case after waiting only four years.
Yesner notes that occasionally you can file a motion for Chapter 13 bankruptcy sooner than four years after a Chapter 7 bankruptcy and that this scenario is a lot more common than people think. Its so common, in fact, that attorneys have come up with a slang term to describe a Chapter 7 bankruptcy followed promptly by a Chapter 13 bankruptcy. This slang term, which is not really a type of bankruptcy at all, is called a Chapter 20. According to Yesner, some courts allow this type of case to proceed and others do not.
Yesner offered the following example to explain how he is helping a client in this exact situation:
