Texas Bankruptcy

For best results, debtors must carefully plan the selection of chapter, date of filing, and options. All options are not available to all debtors because of variation in financial histories, assets owned, and new income restrictions. Because of the complex nature of recent changes in federal law, the assistance of a qualified attorney or law firm is essential. With assistance, effective debt relief is readily available through the bankruptcy courts.

All debtors who file immediately receive protection created by an automatic stay once the petition receives the clerk's file stamp. Thereafter, qualification for each chapter is different, as is the relief available. All decisions regarding exemptions, forfeiture of assets, if any, integrity of past conveyances, and qualification should be a first priority, before filing. For Texans, the current permissible Chapters are:

Texas bankruptcy Chapter 7 - eliminates debts quickly and completely without further payment. Because Chapter 7 is the preferred choice for most debtors, income restrictions prevent many people from qualifying for this Chapter. A discharge in Chapter 7 is normally available within 4 to 6 months after filing, and thereafter, the case is administratively closed by the court.

Texas bankruptcy Chapter 11 - is the preferred choice for large and/or wealthy corporations and individuals. In exchange for relatively expensive case administration requirements, debtors receive greater options and benefits that are simply not available in other chapters. Ch. 11 filings in Texas decreased nationwide since 2001, while all other case filings increased steadily both in number and as a percentage of the Texas population.

Texas bankruptcy Chapter 12 - applies only to qualified family farmers (income requirements, nature of business, and dependence). Because of the seasonal nature of agriculture harvests, special provisions allow reorganization of payments and debts to coincide with sporadic income.

Texas bankruptcy Chapter 13 - reorganization requiring regular monthly income dedicated to trustee payments. Subject to federal ceilings placed on total amounts owed, employees and others who earn regular income may reorganize their payments, terms, and interest rates, as well as discharge the remaining portion owed once the plan is complete.

Restrictions on Texas Bankruptcy Lawyers

Many restrictions and guidelines regulate Texas bankruptcy lawyers, as set forth in the rules of procedure adopted by Texas bankruptcy courts. Attorney fees and filing fees that may be charged are limite in most consumer cases. For more information, see:

• Texas bankruptcy lawyers
• bankruptcy fees for attorneys
• filing fees