What Is The Difference Between Chapter 7 And Chapter 13 Bankruptcy In Texas
- Debtors under Chapter 7 bankruptcy may liquidate their assets and properties to pay off debts, while chapter 13 bankruptcy enables debtors to retain both exempt and non-exempt debts.
- In Chapter 7 bankruptcy, there is no minimum debt required. In contrast, debtors under a Chapter 13 bankruptcy must not have secured or unsecured debts above $1,257,850 or $419,275, respectively.
- Debtors who file for chapter 7 bankruptcy get to keep all wages and earnings after the filing date. In contrast, Chapter 13 bankruptcy debtors must repay all or part of unsecured debts over three to five years.
What Is The Npii
The National Personal Insolvency Index is a publicly available and permanent electronic record of most personal insolvency proceedings in Australia.
See National Personal Insolvency Index for more information.
Note: The NPII does not include records of company insolvencies. The NPII records are for individuals only.
Information about corporate insolvencies is available from the Australian Securities & Investments Commissions website. You can also search to see if a business name is registered and, if so, to whom.
Where an individual operated a sole trader business, there is no record of a business insolvency. Instead, you may wish to search the NPII for any records for the individual.
What Types Of Bankruptcy Should I Look For
Individuals and businesses can file for several different types of bankruptcy depending on the reasons for filing.
Some of the common types of bankruptcy include:
Regardless of the type of bankruptcy that was filed, it can be searched the same way. The easiest way is using the online PACER system to access bankruptcy documents. You do not need to know which chapter the bankruptcy was filed under to search online for the record.
If you know the name of the individual or the name of the business, you can begin the search for bankruptcy documents. Chapter 7 bankruptcy is the most common type of claim for individuals. If your search reveals that the person you are looking into filed for Chapter 7 bankruptcy, you will know that their debts were likely more of a personal nature than business related.
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What Are The Benefits Of Filing A Chapter 7 Bankruptcy In Texas
Individuals who file a chapter 7 bankruptcy in Texas state may gain the following benefits:
- Under a Chapter & bankruptcy, the courts prevent creditors from possessing the debtors assets and properties.
- Chapter 7 bankruptcy cases have a 94.3 percent success rate, as opposed to other types of bankruptcy claims
- Debtors and creditors can get verdicts and settlements within three to six months
- There is no minimum debt requirement when filing for a chapter 7 bankruptcy.
Do You Have To Disclose Your Bankruptcy To Your Employer
You don’t have a proactive duty to tell your current employer that you filed for bankruptcy in the past. However, because your bankruptcy filing is a public record, your employer can find out about it through a public record search or credit check. Also, if you are in a Chapter 13 bankruptcy and fail to make your monthly plan payments, in some states, the court or the bankruptcy trustee will send your employer a wage deduction order to withhold the payments directly from your paycheck.
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How Long Does Bankruptcy Stay On Your Credit Report
A Chapter 7 bankruptcy stays on your credit report for ten years after your filing date. A Chapter 13 bankruptcy gets removed after seven years because debtors repay at least some of their debt. While the bankruptcy information remains on your credit report, anyone who pulls your credit can learn of your filing. So an employer or credit provider that doesn’t directly ask you about previous bankruptcies on your application can find out through a credit check.
What Type Of Bankruptcy Should You File In Texas
Debtors can determine the type of bankrupt chapter to file depending on the outcome of the means test. The Bankruptcy court uses the mean test to analyze the debtors income and expense and determine if the debtor will file for a Chapter 7 or Chapter 13 bankruptcy. An individual debtor can file for a Chapter 7 bankruptcy case if the debtors average income for six months before the filing is below the minimum median income for Texas.
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Chapter 7 Bankruptcy: Liquidation
Those who file for Chapter 7 bankruptcy are only allowed to do so if the court determines a person doesnt have enough income to pay off their debttypically done through whats called a means test. Chapter 7 is the most common type of bankruptcy filed, making up 70% of all personal bankruptcies in 2020.
When this happens, a persons assetsor anything thats of valuegoes into liquidation to pay off outstanding debts to creditors. Except for debt like federal taxes and student loans, any remaining debt is typically discharged within four to six months.
However, nearly all Chapter 7 bankruptcies are filed by people who dont have enough equity to pay back creditors, or their property is protected under state exemption laws. As a result, their property cant be sold by the trustee overseeing the case.
Criminal Background Checks: No
Bankruptcies wont show up in the results of criminal background checks, as those screenings provide information about criminal records and histories, including felony and misdemeanor criminal convictions and pending criminal cases. Filing bankruptcy is not a crime and is therefore not filed in a criminal court.
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Chapter 11 Bankruptcy: Business Reorganization
In simplest terms, a Chapter 11 bankruptcy essentially buys at-risk businesses more time. It allows them to reorganize and restructure their business to make it more profitableall while protecting themselves from creditors. If the reorganization isnt successful, all businesses assets will go into full liquidation.
Conduct Comprehensive Screenings With Goodhire
As part of a comprehensive employment background check, Civil Court Background Checksincluding Federal Bankruptcy Searchesgive you more insight into candidates financial backgrounds, including bankruptcies filed within the past 10 years. With this information, you can more confidently:
- Hire qualified candidates
- Comply with industry regulations, and
- Make the most accurate and informed hiring decisions for your company
GoodHire offers hundreds of screening options, including Upper & Lower Civil Court Checks, Federal Court Checks, and Federal Bankruptcy Checks.
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What Are The Other Types Of Bankruptcy In Texas
Besides filing for a Chapter 7, 11, or 13 bankruptcy in Texas, persons or entities can also file for a Chapter 12 bankruptcy. First used in 1980 to reorganize farmers debts, the Chapter 12 bankruptcy petition specifically caters to farmers and fishermen. Eligible persons may file for Chapter 12 bankruptcy to prevent loss of properties and assets.
Who Can File A Chapter 13 Bankruptcy In Texas
First, non-individual debtors like corporations and LLCs can not file for Chapter 13 bankruptcy in Texas. Only individuals with the financial means for making regular monthly payments are eligible to file under Chapter 13 bankruptcy. Nevertheless, debtors must prove their financial strength by disclosing their source of income to the bankruptcy court within two weeks of filing a Chapter 13 bankruptcy.
Individual debtors are eligible to file for chapter 13 bankruptcy if their unsecured debts are not above $419,275. Also, the secured debts, such as mortgages, are not above $1,257,850. Debtors can utilize the following sources of income to fund a Chapter 13 bankruptcy repayment plan:
- Rents and royalties
- And sale proceeds from selling properties.
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Different Types Of Bankruptcy
Its important to note that there are two common types of bankruptcy that most people should be aware of. Those two types are chapter 7 and chapter 13 bankruptcy. Here are some of the main differences:
- Chapter 7 bankruptcy. This type of bankruptcy is typically associated with a fresh start for individuals or couples. Typically, chapter 7 bankruptcy is used for medical bills, credit card balances, personal loans and similar types of debt. Many people filing for chapter 7 bankruptcy can keep basic possessions and some equity in a vehicle.
- Chapter 13 bankruptcy. This is typically reserved for high-income individuals. This type of bankruptcy works to help form a plan to repay debts over three to five years. This can be helpful for individuals swamped with an un-payable debt now. Chapter 13 bankruptcy is often used to help high wage earning individuals catch up on home or car payments without other debts getting in the way.
Declarations Of Insolvency And Inability To Pay
Consult B 6/74-8, B 6/176-177 and B 6/220-222 for declarations of insolvency and inability to pay. From 1825-1854 these records cover London and county cases. After 1854 they cover London only. They usually show:
- the date the declaration was filed
- name, address and occupation of the debtor
- debtors solicitors name
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Bankruptcy In California Basics
Bankruptcy is a legal proceeding that takes place in the federal bankruptcy courts. Every state has at least one bankruptcy court, and that state’s laws can impact the procedures required. In California, there are four different bankruptcy courts which have multiple locations serving various geographical areas. The courts in California are:
the Northern District
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How To Check Bankruptcy Records
Section 107 of the U.S. Bankruptcy Code requires bankruptcy case information to be public record. People who wish to look up their own bankruptcy case or the case of another person can access the information by phone for free through the U.S. Department of Justice’s Voice Case Information System. The VCIS allows people to use their phone to navigate bankruptcy court records and listen to an automated listing of case information. To use the VCIS, you must know the bankruptcy district in which the case was filed and the name of the debtor.
Go to pacer.gov. Select “Find a Case” and choose “Automated Phone Access.” Scroll down until you find the number for the bankruptcy district in which the debtor filed.
Punch in the debtor’s name using the keys on your phone. Substitute “1” for “Q” or “Z.” Press the “#” key.
Listen as the system lists information about the case, including the names of the debtors, lawyers, the judge and the trustee. You can also hear the case number, the current status of the case and important dates such as the filing, 341 meeting, a discharge or dismissal and closing dates.
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Who Can File For Bankruptcy Chapter 11 In Texas
Individuals and entities can voluntarily file for a Chapter 11 bankruptcy when they do not want to liquidate their assets or when the debt profile is above the requirement under a Chapter 13 bankruptcy. On the other hand, creditors can also force a company or individual to file for chapter 11. Under 11 U.S.C. §§ 109, 362-, bankruptcy courts can force a debtor to file for bankruptcy if three or more creditors petition the court. In addition, bankruptcy court prevents creditors from taking possession of a debtors properties after filing for bankruptcy – this provides debtors with enough time to develop a debt repayment plan.
How To File A Chapter 13 Bankruptcy In Texas
Individual debtors can file for chapter 13 bankruptcy in Texas with or without the aid of an attorney. Chapter 13 bankruptcies filed without the aid of an attorney have a low success rate. With the aid of an attorney, debtors can collate the necessary documents for filing Chapter 13 bankruptcy in Texas. In addition to this, debtors must provide the following information:
- Documents detailing the debtors source of income
- List of all creditors and debt owed
- A detailed list of the debtors monthly expenses and liabilities
- The debtors tax information.
In addition to this, debtors must attend a verified credit counseling course at an approved agency. Debtors can find the nearest credit counseling agency in Texas on this online list. After filing a Chapter 13 bankruptcy, debtors will propose a debt repayment plan. Furthermore, the bankruptcy judge will vet and approve the debtors repayment plan in line with the Bankruptcy Codes guidelines.
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What Is Address Background Check
Employers use SSN background checksalso referred to as address history background checksto unearth information that may be critical to the rest of the background check process. SSN checks reveal any names that are associated with a Social Security Number, including maiden names, name changes, and known aliases.
Is A Bankruptcy Discharge Public Record
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In a Nutshell
There are a few, limited ways that your bankruptcy becomes public record.This alone shouldn’t stop you from choosing to file for bankruptcy.
Whether or not a bankruptcy discharge is public knowledge can be an important factor if youâre considering bankruptcy.
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Where And How To File For Bankruptcy In Texas
In Texas, debtors can file for bankruptcy at the following bankruptcy courts listed below:
Texas Eastern Bankruptcy Court
San Antonio, TX 78295 472-5187
Irrespective of the type of bankruptcy case, debtors can file for bankruptcy via the following general steps:
Note that this is not a requirement for filing a Chapter 11 bankruptcy case.
There Are A Few Ways In Which To Find Bankruptcy Records
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Can A Bankruptcy Be Expunged In Texas
The U.S. bankruptcy code ) permits judges to issue orders, processes, or judgments necessary to effect the codes provisions. Although no expungement procedure is mentioned in the code, this unfettered authority allows the courts to accept motions to expunge or redact from case participants. However, because bankruptcy records are primarily public information, an expungement is quite rare and can only be permitted in extraordinary circumstances, such as when there is an issue of fraud or when there is an incorrect filing .
What Does Pacer Show
If you look up a particular bankruptcy case on PACER, you’ll be able to view the entire history of documents filed in the case from the beginning, including the bankruptcy petition and schedules and any motions, notices or orders filed by the debtor, the trustee, the creditors or the court. The list of documents and events, called a docket, provides a chronological list of all the things that happened in the case. You can also look at the list of creditors who filed claims in the case as well as all the attorneys who appeared in the case and other important information.
Most documents on PACER are in PDF format, so you’ll need a PDF reader to view them.
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What Do Texas Bankruptcy Records Contain
Anyone who requests a Texas bankruptcy record from the federal courts can obtain personal information such as the debtors name, address, and contact details the attorneys name and phone number and the names and addresses of creditors. The record will also comprise financial information including schedules, amounts owed to creditors, the debtors assets, and current income sources. Lastly, relevant case information will be included, such as:
- The case number and case status
- The chapter filed for the case
- The filing and disposition dates
- The judges and courts name
- The closing, discharge, or dismissal order
- Information on the 341 meetings of creditors
- Proof of claim deadlines
How Do You Qualify For Bankruptcy In Texas
Persons or entities can qualify for bankruptcy depending on the type of bankruptcy case. For example, the 11 U.S.C. § 109 enables debtors to file for Chapter 13 bankruptcy if their secured and unsecured debts are less than $1,184,200 and $394,725, respectively. Note that the amounts may differ with respect to changes in the Bureau of Labor Statisticsconsumer price index.
On the other hand, debtors can file for Chapter 7 bankruptcy in Texas if their disposable income falls below the median income for the state. Debtors must take a means test to determine their disposable income level. In contrast, there is no limit on the amount of debt before a debtor can file for Chapter 11 bankruptcy in Texas.
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How To Obtain Case Information
Case Information by PhoneCase information is available toll free through the court’s automated Voice Case Information System at 222-8029. This system is available 24 hours a day, 7 days a week. A case number, complete name, or a social security number/ITIN is required to obtain case information. The information available from the automated system is:
- Case number
- Name of debtor, or principal party
- Date the case was filed, whether a voluntary or involuntary petition was filed, and the chapter under which the petition was filed
- Name and phone number of the debtors attorney
- Trustee’s name
- Name of the assigned Judge
- Discharge and closing dates
- Whether there are assets in the case
- Case status and
- Case disposition.
Case Information OnlinePublic Access to Court Electronic Records is a web-based system that allows users with an internet connection and a PACER account to view or print case documents online. A fee is charged for each page viewed. To sign up for a PACER account, register at . Case Information in PersonMost bankruptcy records can be viewed at no charge using the public access terminals in each Bankruptcy Court divisional office. For cases closed in the Los Angeles Division prior to February 1, 2001, please call the Courts Call Center at 460-9641 for assistance.
All requests for certified bankruptcy documents sent by mail must include:
Requesting parties will be contacted by phone once the Bankruptcy Court determines the total fees due.