Filing For Bankruptcy Ohio Legal Help
To file for Chapter 7 bankruptcy, your household income must be below the median Bankruptcy is complicated and difficult to handle without a lawyer,;
Most people filing bankruptcy file under Chapter 7 or Chapter 13. it can be very difficult to go through bankruptcy without an attorney.
Some of the bills you must pay include a petition filing , court fees and attorney fees
Entities That Cannot Be Debtors
The section of the Bankruptcy code that governs which entities are permitted to file a bankruptcy petition is 11 U.S.C.;§;109. Banks and other deposit institutions, insurance companies, railroads, and certain other financial institutions and entities regulated by the federal and state governments, and Private and Personal Trusts, except Statutory Business Trusts, as permitted by some States, cannot be a debtor under the Bankruptcy Code. Instead, special state and federal laws govern the liquidation or reorganization of these companies. In the U.S. context at least, it is incorrect to refer to a bank or insurer as being bankrupt. The terms insolvent, in liquidation, or in receivership would be appropriate under some circumstances.
Chapter 7 And Unsecured Debt
In Chapter 7, unsecured debts are discharged at the end of the case, unless they are priority or non-dischargeable debts like child support, recent income taxes, or student loans. If the debtor has debts for significant cash advances or luxury goods bought shortly before the bankruptcy was filed, the creditor can sue to stop those debts from being discharged.
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Is There An Income Limit For Chapter 7 Bankruptcy
To automatically qualify for Chapter 7, your disposable income must be below the median level for your state. That number varies from state-to-state. If your disposable income exceeds the median in your state, you still may be able to qualify through a means test that includes looking at your income and reasonable expenses to see if you can get that number under the median income for your state.
What Are Secured Debts
You will need to sign a Reaffirmation Agreement to keep certain secured debts. For example, you may keep secured debts such as your house, car and others by reaffirming those debts. However, you will not be able to wipe out that debt for eight years if you decide to keep those assets and reaffirm the debt.
Reaffirming Agreement simply assures your creditors that you will continue paying those debts as you are obligated to before you filed for bankruptcy. You will also have to pay back the payments that are due if you are three or four months behind, in order to reaffirm that debt.
If you do not want to file for bankruptcy you can negotiate a payment agreement with your creditors.
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Filing Without An Attorney
The information presented here is accurate as of the date of posting.; However, it should not be cited or relied upon as legal authority. It should not be used as a substitute for reference to the United States Bankruptcy Code and the Federal Rules of Bankruptcy Procedure, both of which may be reviewed at local law libraries, or to local rules of practice adopted by each bankruptcy court. Finally, this information should not substitute for the advice of competent legal counsel.
What is Bankruptcy?
The information found in this section serves as a general guideline to bankruptcy procedures and was written for use nationwide. The Eastern District of Texas may not follow every procedure exactly as described here. The local rules may contain slight variations and should be consulted for specific issues.;
Where Is My Local Bankruptcy Court Where Will My Meeting Of Creditors Be Held
Like every other state in the union, Texas contains a series of state and federal courts to serve its residents. Because bankruptcy is a process organized under federal law, Texas bankruptcy courts are part of the federal court system.
Texas is a big state with four federal districts, each with numerous bankruptcy courts. Districts are further divided by division, which include;courthouses for local residents. The 341 meeting of creditors usually takes place at the division courthouse nearest to your home. In most cases, bankruptcy filers are not obligated to attend court. The meeting of creditors rarely takes place in an actual courtroom.
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Selling House After Filing Chapter 7 Bankruptcy
By nwdempsey
Do you find yourself in a situation where you are considering filing for Chapter 7 bankruptcy? This option can provide some debt relief in times of financial instability and you are not alone in considering this path. However, one of the most common concerns of homeowners is What will happen to my home if I file bankruptcy, and will I be able to sell it afterward?;;
In this article, we will go over the process for Chapters 7 filings and explain why it is one of the most commonly utilized by bankruptcy filers. We will also cover useful information about bankruptcy laws in the state of Texas, what are the necessary steps to ensure you keep ownership of your home, and what are your sale options once the process is complete.
Chapter 7 Bankruptcy Is For Low Asset And Income Individuals
There are several kinds of bankruptcy protections, some of which are for business and others that can help individual people. For individuals, Chapter 7 and Chapter 13 bankruptcy are the common options.;Chapter 13 involves restructuring;your debt to obtain lower monthly payments. After you complete a repayment plan for several years, the courts will discharge the remaining balance.
Chapter 7 bankruptcy, on the other hand, offers help for those who have little ability to repay their debts. That includes people with few valuable assets and those who have lower incomes. The protections of Chapter 7 bankruptcy include a debt discharge without a repayment plan first. In order to prevent abuses, the government caps the potential income of people seeking Chapter 7 relief based on the average income in their state.
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How Will Chapter 7 Bankruptcy Affect My Credit
Before Erin files your bankruptcy case, Erin and her staff review your credit reports with the three credit reporting agencies, Experian, Transunion, and Equifax, and make sure that any creditors who have posted any derogatory remarks on your credit reports are included in your bankruptcy case filing. When you receive your bankruptcy discharge, Erin sends that Discharge Order to the three credit reporting agencies, asks them to correct your credit report to show that all of these debts have been discharged and you are then sent corrected credit reports so that you can begin your financial fresh start. Erin provides this service to all her clients, for no extra charge.
Qualifying For Chapter 12 Bankruptcy
You as an individual, you and your spouse, or the corporation or partnership in which you are an owner can file a Chapter 12 case only if the individual or business entity filing the case meets the special definitions of a family farmer or family fisherman with regular annual income found in subsections 101 and of the Bankruptcy Code. For farmers and ranchers, here are the qualifications:
- Debt limit: total debt of no more than $3,792,650.
- Farming debt ratio: at least 50% of the total debt of the individuals or business entity is from the farming operation ), excluding the debt on the principal residence .
- Farming income ratio for individuals: more than 50% of the gross income must have been received from the farming operation.
- Ownership: more than 50% of the business ownership must be in one family, or in that family and its relatives.
- Asset ratio: more than 80% of the entitys assets must be from its farming operation.
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How To File Bankruptcy In Texas
In Texas, you can apply for both Chapter 7 and Chapter 13 Bankruptcy as an individual consumer.
Pass a means test. Under the test, if you make less than the median income for a Texas family, you may file under Chapter 7. Read More:Rules for Filing a Second Bankruptcy
Undergo credit counseling approved by the state and complete any unfiled tax returns.
File a Statement of Financial Affairs with the court. Your Statement of Financial Affairs will include a list of all your debts, both secured and unsecured . You will also need to include names and contact information for all your creditors and an itemized list of your personal property and assets.
Tips
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If you own a home or property and file bankruptcy, you will most likely be able to keep it under federal and Texas state exemptions. Keep in mind, however, bankruptcy does not erase mortgages or liens, so if you are behind on your payments, your house may still be foreclosed on.
If you have extra income that would allow you to repay your debts, you may want to file Chapter 13 bankruptcy. Under Texas Chapter 13 bankruptcy, you will establish a payment plan with the approval of the court.
References
Legal Guidance From The Law Office Of Mark B French
After Chapter 7 bankruptcy is complete, you are no longer liable for any debts covered under that particular case. In addition, creditors are required to cease all collection attempts. At The Law Office of Mark B. French, our lawyers have more than 30 years of experience helping clients through their bankruptcies.
Speak with our Bedford Chapter 7 bankruptcy attorneys from The Law Office of Mark B. French to better understand the process. We can help you determine if Chapter 7 is right for you.
Schedule a case evaluation at your earliest convenience bycontacting our firm. We can assist you through this emotional and difficult financial situation.
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The entire staff was always friendly and helpful!
– Grateful Client
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Mark French is the one to call.
– A Grateful Son
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Your knowledge and professionalism in answering all my questions and guiding me during this process took away all my worries and enabled me to attain a positive result.
– Ann
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Can I Keep My Home And File Bankruptcy In Texas
This means that debtors in Texas can file for Chapter 7 bankruptcy can keep their home, regardless of its value.
Be aware however, that there is a residency requirement in order for the Texas homestead law to apply.
According to legalconsumer.com:
Under the new bankruptcy law, you must have lived in the state for at least 40 months before you can claim any homestead protection greater than $146,450. The law is poorly worded but seems to say that if you move from one home to another in the same state, you can claim that states homestead protection.
Since the Texas homestead exemption allows for protection greater than $146,450, you must have been living in Texas for 40 months before the law applies. In addition to the residency requirement for utilizing the Texas homestead exemption, bankruptcy law generally requires that the debtor have lived in a state for the last two years before that states exemption laws will apply.
This requirement is designed to prevent debtors from picking up and moving from their home state to state with more favorable laws in order to protect more property in a bankruptcy filing.
If youve recently moved to Texas, the state that you live in previously is likely to supply the law in your bankruptcy case. If you have questions, make sure to meet with a qualified bankruptcy attorney.
Can I File For Bankruptcy Without An Attorney
While you are not legally required to have a lawyer, the filing process can involve complex legal issues. Its also emotionally exhausting especially when you are all by yourself. An experienced and supportive lawyer can make a substantial difference in your experience . Call or text DebtStoppers today at 469-646-0750 to schedule a free debt analysis with one of our skilled Texas attorneys.
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Legal Help With Discharging Your Debt
After the trustee administers your case, your eligible debts are discharged. A creditor may not initiate or continue collection efforts for that debt. You may choose to reaffirm a debt with asecured creditor, for example, if you wish to keep making a car payment to keep a vehicle. Certain debts, such as alimony, child support and student loans, cannot be discharged. Filing forChapter 7 bankruptcy is not an easy decision. As a bankruptcy attorney for more than 20 years, I can help you decide the best course of action, and then guide you through the process.
Estimate Whether You Will Lose Any Property
As you can imagine, many people want to keep their home, car, cash, etc. when filing bankruptcy.;
You need to understand the bankruptcy exemptions in Texas. The bankruptcy exemptions are complex because some states allow you to choose between state and federal exemptions when filing bankruptcy. For example, check out the Texas homestead exemption.
As such, we created this Texas bankruptcy exemptions calculator to simplify the information. This free calculator helps you estimate whether your belongings are at risk when filing bankruptcy in Texas.
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Issues With Chapter 7 Conversion
When you file for Chapter 13 bankruptcy, part of the process will be that the court will officially approve a repayment plan you must follow to receive a final discharge. If you cant agree on a plan that the court will approve, in some cases, you can convert your filing to Chapter 7.
However, if you already filed once, you have these varying time requirements before your second discharge. So, converting a Chapter 13 filing to Chapter 7 can be a problem. You may be past the amount of time required to receive a discharge with Chapter 13, but not long enough to receive a discharge with Chapter 7.
This makes having the right bankruptcy services on your side even more essential on a second bankruptcy, because you may be navigating some tough waters.
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Category: Legal 1. College of Science: Patent Attorney Purdue University Becoming a patent lawyer usually takes seven years of full-time study after high schoolfour years of undergraduate study, followed by three years of law school; To become a patent attorney, the USPTO requires applicants to have a degree or
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Estimate Whether You Will Qualify For Chapter 7 Bankruptcy In Texas
As stated above, you often have to qualify to file Chapter 7 bankruptcy. Qualification is based on US means testing. The means testing is based on the household income and size of the household for Texas.;
Bankruptcy Means Test In Texas
The bankruptcy means test in Texas often changes every 6 months. To help, we built the following bankruptcy means test calculator to help you estimate qualification, understand the cost and compare bankruptcy alternatives.
Texas Chapter 7 Bankruptcy Income Limits;
| # of People |
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| $134,196 |
Will Bankruptcy Wipe Out All My Debts
A Bankruptcy will not eliminate all debts. For example, these debts will not be discharged in a bankruptcy if:
money owed for child support or alimony, fines, and some taxes; debts not listed on your bankruptcy petition; loans you got by knowingly giving false information to a creditor, who reasonably relied on it in making you the loan; debts resulting from willful and malicious harm; student loans owed to a school or government body, except if: the court decides that payment would be an undue hardship; mortgages and other liens which are not paid in the bankruptcy case .
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Final Thoughts And Considerations On Filing For Bankruptcy In Texas
As you can see, there a lot of information associated with successfully filing for bankruptcy and then exiting it unscathed or satisfied. Only a licensed bankruptcy attorney can guide you through this arduous process, particularly when it comes to complex cases. Be sure to hire someone you respect and trust.
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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Choosing The Wrong Type Of Bankruptcy
There are two different consumer bankruptcy options: Chapter 7 and Chapter 13. Which one is best for you depends on how much you make, whether you can pass the Chapter 7 means test, the types of debts you owe, and whether you have significant assets that you want to protect. A bankruptcy attorney can help you weigh your options and choose the right one to improve your financial situation.
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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