Texas Bankruptcy Law Tips For Individual Debtors

Effective as of October 17, 2005, new bankruptcy laws limit qualification for Chapter 7, increase Chapter 13 payments over extended duration, and eliminate judicial discretion in many new circumstances. These amendments received approval following a statement, issued August 18, 2003 by the Administrative Office of the U.S. Courts, declaring ";Bankruptcy cases continue to break federal court caseload records - total bankruptcy filings and non-business filings hit highs."; During this period, the filing rate for Texas bankruptcy cases during 2003 increased 10.4% in the Northern District (Dallas) and Southern District (Houston) over 2002. Filings in the Western District (San Antonio, Austin and El Paso) increased 9.3%. Filings in the Eastern District (Tyler) increased 7.2%. Chapter 7 and Chapter 13 accounted for 98.6% of Texas bankruptcy cases filed in 2003. Statewide, only Chapter 11 case filings decreased, accounting for 1.3% of total volume of all Texas bankruptcy cases.

Texas bankruptcy laws permit the full & final discharge of debts in Chapter 7. Chapter 13 combines past due amounts into a single monthly payment, at reduced interest, for up to five years. New amendments require all Chapter 13 cases to be based on a 5 year payment schedule before discharging remaining balances. Further, the maximum payment in Chapter 13 cases is now determined according to a ";one-size-fits-all"; scheme based upon national averages originally determined by the IRS. In ether chapter, all Texas bankruptcy cases are subject to court review and bankruptcy courts may schedule a hearing based on objections filed by the trustee, a creditor, a party in interest, or upon the court's own motion. Once all objections are resolved to the satisfaction of the court, discharge of debts and/or confirmation of the plan is mandatory. If objections are not resolved, cases are most often dismissed. For consumers, in the wake of broad sweeping reform, the success of each case is necessarily determined by careful planning before selecting chapter, options and filing date.

Texas Bankruptcy Law Questions

Most Texas bankruptcy attorneys who special in consumer/debtor cases offer free initial consultations . Virtually all private attorneys welcome opportunities to meet qualified potential clients. After debtors become familiar with current requirements, initial consultations offer an excellent opportunity to explore options and receive free legal advice, before deciding upon any course of action. If you have considered filing, make a detailed list of questions. Meet with several lawyers. By comparing costs, benefits and options without obligation, your most profitable path will become clear.