Here are the most common Chapter 7 bankruptcy frequently asked questions
You probably have many questions about Chapter 7 bankruptcy in Texas. So, we’ve compiled some of the most frequently asked questions we’ve heard and created a FAQ list specifically for Chapter 7 bankruptcy frequently asked questions. Feel free to click on any of these Chapter 7 bankruptcy questions below and be directed to the answer. If you do not see your question here, feel free to contact us so that we can help answer your specific question.
In short, yes. This seems to be one of the most frequently asked questions regarding bankruptcy. Under the Texas bankruptcy law, you need to have lived in the state of Texas for at least three years and four months (or 40 months). After that time, you can claim homestead protection that may be greater than $146,450.00, as long as the property does not exceed 10 acres in a city, town or village or 100 acres in other areas. If you’ve recently moved to Texas however prior to the 40 months, and you wish to claim bankruptcy, the state in which you had lived previously may act as the law specific to filing your Chapter 7 bankruptcy case. Exemption laws may change, so be sure to discuss your specific concerns with the attorney.
In short, yes. Basically if you have a drivers license, you may have the right to protect your vehicle. The law for bankruptcy in Texas allows for you to protect $30K of personal property or $60K of personal property for your family. Although this may be the case now, it is always good to inform your attorney of all of your assets and what you would like to try and keep during your Chapter 7 bankruptcy filing. Exemption laws may change, so be sure to discuss this with your attorney to ensure that you are in fact able to keep your automobile or other assets that you want to keep.
Fees can vary from what the court will charge to what the attorney may charge you. It can also depend on the assets that you have and assets you wish to keep. Typically court filing costs are roughly $306.00 which is paid to the court and not the lawyer. The attorney or law firm will normally charge you for a credit check so that the information they provide to the court is as accurate as possible. The attorney will of course charge you fees to file and oversee the complete case from start to end. Because every case is different it is very difficult for us to give you an accurate representation of the cost without understanding everything that relates to it. Our law firm does offer installment plans and flexible payment plans that should help relieve your financial stress.
There are many determining factors when filing for bankruptcy in Texas. The main analysis that we need to ensure is that you are within the means of Chapter 7 bankruptcy. This process is called the “means test”. The means test acts to make it a bit more difficult to file Chapter 7 bankruptcy when you as the debtor may actually have the means to pay back your debtors. For a single person (1) their income must be less than $40,925.00 or they will have to reanalyze their disposable income under the means test. Just because as a single filer you may make more than what the means test allows there still may be other options and one of those options may be debt negotiation. Whatever your question is, it’s always best to speak to a qualified attorney so that they can inform and educate you on what the possibilities are for your specific situation.
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