The bankruptcy proceedings can be a confusing and intimidating task. Bankruptcy is a legal process that allows people in financial difficulty to pay off or withdraw a large portion of their debts from their balance sheets without having to repay them.
If you live in Texas and have been struggling with debt for a while, it might be time to consider on how to file bankruptcy. Bankruptcy is a powerful tool that allows individuals and families to reorganize their finances and regain financial stability.
Here’s what you need to know about filing for bankruptcy in Texas:
Understanding the Types of Bankruptcy in Texas
There are two types of bankruptcy that people can file for financial hardship – Chapter 7 and Chapter 13.
Chapter 7 bankruptcy, also commonly known as run-off bankruptcy, is a type of bankruptcy that allows individuals or families in financial difficulty to pay off their debts and get a fresh start by getting rid of most (if not of) all) of the non-exempt debt they have. to have to.
On the flip side, Chapter 13 bankruptcy also helps Texas people deal with their debt by putting them on a supervised repayment plan managed by each state’s Chapter 13 trustee.
The answer to the question Is Chapter 7 the Right Bankruptcy Plan or whether you should opt for chapter 13, it will depend on your specific situation, income, amount of secured debt held, etc. When making this decision, it is best to consult a licensed attorney experienced in filing bankruptcy cases in your state.
What papers and documents you need
You will need to acquire and prepare specific papers and documents before you file for bankruptcy in Texas. In addition, you will also need to attend a meeting with the lawyer who helps you file for bankruptcy at their office or other agreed location.
Filing for bankruptcy requires you to compile many documents:
- Financial information about yourself and your spouse, if you are filing them jointly;
- The last 60 days of pay stubs or salary statements. This document must show all wages earned by all members of the household, including overtime;
- A list of all creditors and the amounts you owe them, along with their contact details;
- A list of goods considered exempt by your state;
- You will also need to make a list of all properties exempted by Texas.
How much does it cost to file for bankruptcy
Filing for bankruptcy in Texas is not an easy decision, nor a cheap one. Under new bankruptcy laws, filing for Chapter 7 will cost you $ 338 file your petition with the court, fees are subject to change. Also, the lawyer who files this type of bankruptcy on your behalf will likely charge more than this amount for their services.
Chapter 13 bankruptcy filing fees are $ 313 and can also change at any time. This cost only covers filing for bankruptcy, while the lawyer will charge an additional amount to prepare and file all your necessary papers and documents with the court.
How long will it take
Filing for bankruptcy in Texas can take anywhere from a few weeks to a few months. However, in most cases, depending on your situation and the complexity of your case, it usually takes three to four months.
How long it will take to receive your discharge will also largely depend on the types of debt you have, the amount of your obligations, and the number of creditors who are trying to collect that debt. Also, once you file for bankruptcy in Texas, your creditors cannot continue to contact you. This means that any further attempt to collect your debt is illegal and punishable by law.
Protect yourself before declaring bankruptcy
It is essential to consider all of your options before declaring bankruptcy in Texas. If you are behind on your payments, it is best to contact creditors, credit card companies, loan providers, etc., and work out a payment plan that fits your budget.
This will help keep your debts from piling up while giving you time to come up with a plan to pay off what you owe. Plus, you can talk to a licensed lawyer about other options for paying off your debt.
Each individual or family has their own goals and challenges that they are trying to overcome when filing for bankruptcy in Texas. However, whatever your reason for having to file for bankruptcy, you should be fully aware of all the pros and cons associated with this decision.
Remember you have options, and the most important thing to remember is to make a plan for your future.