We are often able to allow you to pay the value of the vehicle rather than the full amount of the debt. This normally results in a substantial reduction in your monthly payment on your vehicle. Contact The Brown Law Firm for an appointment immediately.
Texas Bankruptcy Laws - Chapter 7 or Chapter 13 bankruptcy?
A bankruptcy case will normally stop all litigation. When you file your bankruptcy your creditors are stayed from taking action against you, including foreclosure. However, in a Chapter 7 bankruptcy, if you do not bring your mortgage current the lender could request from the bankruptcy court a "relief from the stay" which would allow them to foreclose.
In a Chapter 13 you generally can put the arrearages you owe in your Chapter 13 plan, but would have to make regular monthly payments each month going forward from the filing date of your Chapter 13 plus make payment toward the arrearage. In today's market, a Chapter 13 bankruptcy may help you save your homestead by offering a structured loan modification process, and may afford you the opportunity to discharge second mortgages, home equity lines, and other liens secured to your home.
Like your home, the bankruptcy process is designed to help you keep the vehicles necessary for your family. Again, either Chapter 7 or Chapter 13 can provide the necessary protection so that you can retain the cars required to maintain your family needs. Normally, yes, in a Chapter In a Chapter 7, usually you continue to make the regular payments on your car.
In all likelihood, yes. Generally, no. Retirement accounts that are ERISA-qualified aren't considered property of an estate and aren't taken into consideration as assets. Social Security benefits are protected from assignment, or garnishment for debts in bankruptcy. Once paid, the benefits continue to be protected only as long as they can be identified as Social Security benefits.
For example, money in a bank account where the "only" deposits into the account are direct deposits of Social Security benefits are identifiable and generally protected. If you do, it will most probably cause a very large tax liability on your part and it may detrimentally affect your bankruptcy case. In a bankruptcy case, you can save all of your retirement money that qualifies under the IRS's requirements for you. Please call us before spending your life savings. Yes, once you file bankruptcy, you are under protection of the Bankruptcy Court from most creditors. We will immediately notify the garnishing creditor that you have filed a bankruptcy petition.
As soon as you anticipate filing bankruptcy, stop using your credit cards. Bankruptcy law allows the review of questionable purchases for potential fraud. If purchases are made 40 days prior to filing or cash advances taken within 20 days of filing, the debt may possibly be excluded from the bankruptcy and it can be dismissed. Normally all interest stops immediately upon the filing of a bankruptcy.
We can oftentimes remove the penalty that has previously been assessed through a Chapter 13 case. If you are considering filing a bankruptcy, you must file your tax returns that are due, preferably before you file bankruptcy. No file returns. If you can, get your refund before you file. If you do and spend it, you will keep your refund no matter how much it is. If you get your refund after you file bankruptcy, and the refund is over the exemption, you may lose part of your refund. If you are considering filing in the later part of the year, file before December.
If you file in January, you may have to wait for some time after you get your refund back. You will be asked when you got your refund and how you spent it if you got a large refund. In particular, if you will be receiving a tax refund, you should obtain the refund before you file bankruptcy. In some districts, tax refunds received while you are in a Chapter 13 case have to be paid to the trustee for distribution to your creditors. Bankruptcy has an initial adverse effect on your credit score. However, the type of bankruptcy, whether Chapter 7, 11 or 13, will affect an individual's credit differently.
As a general response, if you are in need of a bankruptcy, the initial affect to your credit score should not necessarily guide you in your decision on whether or not to file, particularly if your credit score is already poor. Oftentimes, those in need of a fresh start who choose not to file for bankruptcy will have a harder time rehabilitating their credit in the future.
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However, those who opt for bankruptcy, are ultimately afforded the opportunity in the future to obtain credit cards, purchase vehicles, and qualify for mortgage loans. While these things may not happen overnight, you may be surprised as to the actual positive effect your bankruptcy will have on your life. You can keep your exempt property and, with a few exceptions, anything you obtain after the bankruptcy is filed. There has been much doom and gloom written about the bankruptcy means test under the new laws and how much more difficult it is to file Chapter 7.
How to File Bankruptcy in Texas for Free
It's true that there are more hoops to jump through under the new laws and it's true that the bankruptcy means test results in some people having to file Chapter 13 instead of Chapter 7. However, for the vast majority of filers Chapter 7 is still available with very little extra effort!
Do not use a Bankruptcy Preparer to file your case! They are not attorneys and cannot give you legal advice. You are under bankruptcy protection as soon as your petition is filed. As long as the creditor was listed in the original mailing matrix that accompanied the filing of the petition, notification will typically be received within seven days. The Bankruptcy Rules prohibit any "ex parte" contact communication between just you and the judge with the Court in order to preserve the integrity of the Court and to prevent the appearance of any impropriety or allegations of preferential treatment for any party.
The only time you may speak to the judge is when you are in the courtroom for a hearing in your case. The Judge cannot act as your counsel or advise you with respect your bankruptcy case. The Clerk's Office staff is prohibited from giving legal advice.
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The trustee will distribute the funds from the liquidation to holders of claims creditors in accordance with the provisions of the Bankruptcy Code. Accordingly, potential Debtors should realize that the filing of a petition under chapter 7 might result in the loss of non-exempt property. Chapter 13 - Chapter 13 is designed for individuals with regular income to repay a portion or all of their debt over an extended period of time.
Chapter 13 may be appropriate for Debtors who seek to retain certain assets through a repayment plan. Chapter 11 - Chapter 11 allows corporations, partnerships, and certain individuals who do not qualify under Chapter 13, to reorganize without having to liquidate all assets. As in a Chapter 13, the Debtor called the "debtor-in-possession" because a trustee is not normally assigned is required to present a repayment plan. You have a choice in deciding which chapter of the Bankruptcy Code will best suit your needs. The decision whether to file a bankruptcy, and under which chapter to file depends on the particular circumstances of the debtor.
Also, considering your personal facts, comparing them to each chapter's requirements, and deciding which chapter to select, is considered legal advice. Bankruptcy Clerk's office staff, Bankruptcy Petition Preparers, typing services and paralegals are prohibited by law from giving legal advice.
Only a lawyer can give legal advice. The decision whether to file a bankruptcy and under what chapter is an extremely important decision and should be made only with competent legal advice from an experienced bankruptcy attorney after a review of all the relevant facts of the debtor's case. If you financially are unable to pay most of your debts, then you should probably file a Chapter 7 bankruptcy. Whether you can file a Chapter 7 bankruptcy case, of course, will depend up certain bankruptcy requirements such as the Means Test.
Another misconception is that if you do file a Chapter 13 bankruptcy, you are required to pay back all your credit card or other similar unsecured non-priority debt. To the contrary, that is rarely the case.
You must include all your assets and debts in your schedules filed with the bankruptcy court. Most debtors are able to keep all their assets in bankruptcy by exempting their property. You may opt to keep paying some debts by "reaffirming" the specific debt. While this is possible, it almost never occurs. If the officers or shareholders are personally liable for the debts of the business, the automatic stay in the corporation's case doesn't prevent creditors from trying to collect from such parties who may be liable. What Are Exemptions? The Bankruptcy Code allows an individual debtor to hold back exempt certain property from the bankruptcy process.
Such property is called an exempt asset. Exempt assets are protected by state law from distribution to creditors. Examples of exempt assets include vehicles up to a certain value, equity in a home up to a certain value, and tools of your trade. Exemptions must be claimed or lost and they are claimed on Schedule C.
Do I Qualify for Chapter 7 Bankruptcy?
If no one objects to the claimed exemptions within a specified time, the assets may not be part of your bankruptcy estate. Deciding which assets are exempt can be one of the more important and complex parts of your bankruptcy case often requiring legal judgment as to your particular circumstances. It is extremely important to consult a competent bankruptcy attorney if you have any questions.
The failure to list all property in which an exemption may be claimed and to properly claim an exemption may result in the loss of the right to claim the exemption. What is Credit Counseling? Credit counseling generally refers to counseling from a nonprofit agency that individual debtors must attend either by telephone, online or personally prior to filing under any chapter of the Bankruptcy Code. There are exceptions to the requirements for certain categories of debtors, exigent circumstances, or if the U.
What Is The Means Test? The means test is used in cases where the Chapter 7 individual debtor's s' current monthly income exceeds the state's median family income. It is used to determine if a debtor has the ability to repay a minimum level of general unsecured debt after the payment of allowable monthly expenses. If the means test shows a debtor has such an ability to repay, there is a "presumption of abuse. The U. Bankruptcy Court is part of the federal judiciary.
Each of the 94 federal judicial districts handles bankruptcy matters, and in almost all districts, bankruptcy cases are filed in the bankruptcy court.
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