Wednesday, October 20, 2021
HomeExclusiveHow To File Bankruptcy In Texas For Free

How To File Bankruptcy In Texas For Free

Will Filing Bankruptcy In Texas Erase My Debts

How To File Chapter 7 Bankruptcy Without a Lawyer TX Part 2

Bankruptcy wipes out many bills, like , overdue utility payments, medical bills, personal loans, and more. You can even get rid of a mortgage or car payment if you’re willing to give up the house or car that secures the debt.

But you can’t discharge all debts. Nondischargeable debts, like domestic support arrearages and recent tax debt, won’t go away in bankruptcy, and student loans aren’t easy to wipe out . You’ll want to be sure that bankruptcy will discharge enough bills to make it worth your while.

Mail Documents To Your Trustee

Once your case has been filed, a bankruptcy trustee is appointed to handle your case. The trustee will be your primary point of contact during your Texas bankruptcy, especially if youâre filing without a bankruptcy lawyer. The trustee is also the person that will be asking you questions at your 341 meeting.

The Bankruptcy Code requires that you send a copy of your most recent federal income tax return to the bankruptcy trustee before your 341 meeting. Your trustee may also send you a separate letter asking for additional documents or information from you. If you owe child support or alimony and you’re behind on payments, the bankruptcy trustee will need the name and contact information of the recipient.

Since you have to cooperate with the bankruptcy trustee, itâs important to keep an eye out for any correspondence you may receive from them.

How Much Does Chapter 7 Bankruptcy Cost In Texas

How much does it cost to file Chapter 7? If you qualify to file Chapter 7 Bankruptcy, the Texas Bankruptcy Courts filing fee for a Chapter 7 Bankruptcy is a fixed rate of $335.00. The Bankruptcy trustee may charge an additional $15 to $20 or may waive this fee. Mandatory credit counseling fees will range between $20 and $100. Attorneys fees will range between $975 and $2,000 on average.

So how much does Chapter 7 cost, overall? All in, the total cost of your Chapter 7 Bankruptcy will likely be from $1,345 on the low side to $2,455 on the high side. If you cannot pay the filing fee all at once due to your financial circumstances, most courts will allow you to explain your circumstances and request to break the payments up over time, in an installment plan.

Read Also: How Soon After Filing Bankruptcy Can I Buy A House

Avoid Complicated Chapter 7 Cases And All Chapter 13 Bankruptcies

If you have a complicated Chapter 7 bankruptcy or if you are considering filing a Chapter 13 case, you’ll want to hire an attorney. These types of bankruptcy cases have many pitfalls for self-represented debtors and are a lot harder to complete on your own. In fact, most attorneys who don’t practice bankruptcy law regularly will not file bankruptcy cases. There’s too much risk of making an error.

Using Legal Aid And Free Legal Clinic Attorneys

What Happens When You File Bankruptcy in Texas?

If you can’t afford a bankruptcy attorney, you might find help at a local legal aid society or a free legal clinic. Legal aid societies have both staff and volunteer attorneys to help meet the legal needs of low-income individuals in the community. If you have a legal aid society nearby, check to see if it has a bankruptcy department.

Also, some bankruptcy courts offer free legal information or clinics to help debtors filing without an attorney. Or your court might provide information regarding other free services in your area.

Learn more about finding bankruptcy lawyers.

Don’t Miss: Who Is Epiq Corporate Restructuring Llc

Determine Whether You Need Help To File Bankruptcy In Texas

Did you know that some people file for bankruptcy without an attorney? Many people prefer using a bankruptcy lawyer given the complexity of filing bankruptcy, but it is possible to often file Chapter 7 bankruptcy without an attorney.;Filing Chapter 13 without an attorney may be much more challenging.

Discharge All Debts That You Want To

In most Chapter 7 cases, all debts are discharged legally written offwith 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. 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 dischargedchild and spousal support, for example. Some kinds of debts which are only discharged under very specific or limited circumstancesincome taxes and student loans, for example. Finally, there are debts which are discharged unless a creditor raises and proves the existence of specific conditionsfor example, a loan that was procured through the debtors misrepresentations.

In the simplest Chapter 7 case, you qualify for a discharge, and all your debts are in fact discharged.

Also Check: How Many Times Has Donald Trump Filed For Bankruptsy

San Antonio Bankruptcy Lawyer

The bankruptcy process begins with providing your San Antonio bankruptcy attorney with financial documents, some of which include tax returns, paystubs, titles and deeds. Once you supply this information your attorney will draft your bankruptcy petition.

You will receive credit counseling from a counseling agency that is approved by the bankruptcy court.

Once your Chapter 7 or Chapter 13 petition is filed with the bankruptcy court, the automatic stay which halts all forms of debt collection activity and foreclosures will go into effect.

Whether you file a Chapter 7 or a Chapter 13, a bankruptcy trustee will be appointed to your case.

If you filed a Chapter 13, then you will be required to file a Chapter 13 payment plan within 15 days of filing your petition.

For Chapter 7 and Chapter 13 cases, a Section 341 Meeting of the Creditors will take place between 30 and 45 days of filing your petition; you are required to attend this meeting. Creditors have up to 60 days to file any objections, but objections are rare especially in Chapter 7 no-asset cases.

Prior to obtaining a discharge, the debtor will need to complete a financial management course, so its a good idea to get this out of the way as soon as possible.

If you filed a Chapter 13, then you will be expected to pay payments on your Chapter 13 payment plan for 3 to 5 years. The length of time for a Chapter 13 payment plan will be dependent upon the amount of debt you have and your monthly disposable income.

Texas Bankruptcy Process How To File Bankruptcy In Texas

How to File Chapter 7 Bankruptcy Without a Lawyer TX Part 3

2005 Bankruptcy Act Credit Counseling The 2005 Bankruptcy Act requires all individual debtors who file bankruptcy on or after October 17, 2005, to undergo credit counseling within six months before filing for bankruptcy relief and to complete a financial management instructional course after filing bankruptcy.

2005 Bankruptcy Act Means TestUnder the 2005 Bankruptcy Act your income and expenses will be analyzed to determine if you qualify to file a Chapter 7 or if you must file Chapter 13. To apply the means test, the courts will look at the your average income for the 6 months prior to filing and compare it to the median income for Texas. If the income is below the median, then you may choose Chapter 7. If your income exceeds the median, the remaining parts of the means test will be applied to determine if you can file Chapter 7 or if you must file Chapter 13.

Gathering PaperworkTo begin the bankruptcy process you must itemize your current income sources; major financial transactions for the last two years; monthly living expenses; debts ; and property . You should also collect your tax returns for the last two years, deeds to any real estate you own, your car titles, and the documents for any loans you may have.

The cost for filing a Chapter 7 bankruptcy is $306. This fee may not be waived but you may be able to pay it in installments. The fee of $281 for a Chapter 13 bankruptcy cannot be waived.

Don’t Miss: How To File Bankruptcy In Wisconsin

How Long Does Bankruptcy Stay On Your Credit Report

A large component of how to come back from bankruptcy has to do with how long your credit is negatively impacted by bankruptcy, and this depends mainly on the type of bankruptcy you file. Chapter 7 bankruptcy remains on your credit report for ten years, while Chapter 13, which involves a structured repayment plan, stays on your credit report for a shorter period of seven years.

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.

You May Like: Can I File Bankruptcy Without My Spouse Knowing

Understand The Differences Between Chapter 7 And Chapter 13

Chapter 7 and Chapter 13 bankruptcy are the most common consumer bankruptcy filed in the United States. You need to know the difference because one chapter is more expensive and also often takes much longer.

Chapter 7 Bankruptcy in Texas

A Chapter 7 bankruptcy is referred to as liquidation bankruptcy. In many cases, bankruptcy filers do not lose their home or vehicle by using bankruptcy exemptions. We will cover how your belongings may be at risk below.;

Heres what you need to know about filing Chapter 7 bankruptcy in Texas.

  • Its fast. You can receive a discharge in 120 days.
  • Its less expensive.;
  • You can lose assets, but you may also not due to bankruptcy exemptions. See below.
  • You have to qualify.
  • On credit report for 10 years.
  • Chapter 13 Bankruptcy in Texas

    A Chapter 13 bankruptcy is known as a wage earners plan. In many cases, you will pay back a portion of your unsecured debts in a payment plan.;

    Heres what you need to know about filing Chapter 13 bankruptcy in Texas.

  • Its slow. It can take 3 or 5 years.
  • Its more expensive.
  • You often keep your assets.
  • No qualification is needed as long as you are below the debt limits.
  • On credit report for 7 years.
  • For more information, you may consider reading, Is it better to file Chapter 7 or Chapter 13? and Is Chapter 13 Worth It? You should also consider the pros and cons of bankruptcy.

    Debts That Can And Cant Be Discharged In Chapter 7 Bankruptcy

    What Is an Automatic Stay in Bankruptcy?

    Chapter 7 should dismiss most of the debts you owe, but there are some hard-and-fast debts that cant be discharged in Chapter 7.

    The list of non-dischargeable debts includes:

    • Child support
    • Student loans must prove undue hardship
    • HOA fees if you surrender your home or condo
    • Any other form of unsecured debt.

    Read Also: What Is Epiq Bankruptcy Solutions Llc

    Filing Bankruptcy While Living Overseas

    The bottom line is that if you do find yourself in another country and have left behind excessive debt in the US, in some cases, you wont even qualify for Chapter 7 if you dont have American assets. However, that doesnt mean that you should leave your debts unattended or that youll stay abroad forever. Even if you intend to remain in the country in which youre currently living, burning bridges is never a good way to go. If you can work out a way to face your debt head-on or file bankruptcy without completely defaulting on sums you owe, its better in the long run.

    While its unlikely that creditors will follow you to another country to try and file suit in that countrys court system to regain lost monies, there are other consequences that can haunt you later. The best thing you can do is talk to a qualified American attorney whos dealt with international bankruptcy filings before, whether its in-person or a phone consultation. Only then can you make an informed decision.

    • Options that allow clients to finance their bankruptcies with little or no money down for

    Avoid Filing Bankruptcy If You’ll 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 you’ll 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.

    Also Check: How Many Bankruptcies Has Donald Trump

    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.

    Things You Must Know Before Filing Bankruptcy In Wi

    How to File Chapter 7 Bankruptcy Without A Lawyer TX Part 1

    Filing bankruptcy in Wisconsin without a lawyer. Filing for bankruptcy by yourself is not a good idea. You need counseling from a legal expert to guide you;How much does it cost to file bankruptcy in Wisconsin?Why cant I just file for bankruptcy myself?

    Raise the money · Work out a payment plan before filing · Go pro bono, which means finding an attorney who will take your case free of charge.

    Filing for Bankruptcy Without an Attorney Corporations and partnerships must have an attorney to file a bankruptcy case. Individuals, however, may represent;

    The provisions of the Bankruptcy Code are complicated. It is advisable for businesses and individuals to consult with an attorney before filing a bankruptcy;

    Don’t Miss: What Is A Bankruptcy Petition Preparer

    Take Credit Counseling Course

    You have to take two mandatory credit counseling courses to complete your Chapter 7 bankruptcy. The Chapter 7 trustee may request the certificate of completion in the meeting of creditors. The first course is a pre-bankruptcy course, and the second is the pre-discharge course.;

    If you are filing with an attorney, your attorney may have suggestions for both the credit counseling and debt education course. If not, you can see the list of approved credit counseling courses in Texas.

    Legalconsumercom : : How To File For Bankruptcy In Colorado

    Filing chapter 7 bankruptcy in your state, Colorado, including applicable exemptions, a means test calculator, and access to lawyers all free and specific;

    6 days ago Filing bankruptcy in Colorado consists of taking a credit but it is possible to often file Chapter 7 bankruptcy without an attorney.

    Jun 30, 2021 If you own little property and dont make a lot of money, it might be possible to file bankruptcy pro se . But while filing;

    Recommended Reading: When Does Chapter 7 Bankruptcy Fall Off Credit Report

    What Property Is Exempt From Liquidation

    One of the downsides of bankruptcy may be the loss of some property. However, Texas has a fairly extensive list of property that you can protect. Exempt property includes:

    • Homestead of unlimited value, with some size restrictions
    • Personal property of up to $50,000 in value including furnishings, food, clothing, life insurance, pensions and a limited amount of jewelry

    I will ensure you understand what property and assets you can protect in a Chapter 7 filing.

    The Law Offices Of Kretzer And Volberding Pc Will Help You Make The Most Of Bankruptcy

    How to File for Chapter 7 Bankruptcy by Stephen Elias ...

    If you are trying to assess the costs related to bankruptcy, you will need a lawyer with specific experience on bankruptcy in Texas and who has the right knowledge and resources to help you.

    Contact the Law Offices of Kretzer and Volberding P.C. today to discuss your case and schedule a free consultation.

    Read Also: Bankruptcy Document Preparer

    Print Your Bankruptcy Forms

    The last step before filing Chapter 7 bankruptcy in Texas is printing all the forms youâll submit to the bankruptcy court. You want things to go smoothly when youâre at the courthouse, so it makes sense to be methodical and take your time putting together your packet. This is especially true if youâre filing without an attorney, as youâll likely have each form saved as a separate file on your computer.

    Print each document on standard sized paper in black and white and make sure you sign each signature page. Donât print multiple pages on one sheet and donât print on both sides of the paper. Itâll be helpful to have a hardcopy of the set of forms that you submit to the Texas Bankruptcy Court, so, take a moment at this stage to either print a complete second set, or make a copy of the one set you already printed.

    What Does The Simplest Chapter 13 Case Look Like

    When youre filing Chapter 13 bankruptcy;in Texas,;you and your attorney propose a payment plan based on your ability to pay. Through this plan you usually pay back only part 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. If you have certain kinds of special debts called priority debts such as newer income taxes or any child support arrearage those would have to be paid in full over the life of your plan.;

    Secured debts, like your mortgage, vehicle and furniture loans, are treated in a special way, whether these are paid in full or in part depending on many factors. Debts that are neither priority nor secured are called general unsecured debts, and are generally paid only to the extent that there is money left over to pay them most people do not have to pay any of these amounts back. Especially with priority and secured debts, Chapter 13 usually gives you significant advantages over how these creditors are handled compared to Chapter 7.

    Recommended Reading: When Does Chapter 7 Bankruptcy Fall Off Credit Report

    RELATED ARTICLES

    Most Popular