Bankruptcy Lawyer Houston
A bankruptcy may not be the perfect solution for your financial problems but it can help you get a fresh financial start. It is usually the only path available for people or businesses that have substantial debt that they cannot repay. A knowledgeable and dedicated bankruptcy lawyer can evaluate your case and advise you on the type of bankruptcy that can bring you relief. Your lawyer can also advise you whether or not you should file for bankruptcy in the first place.
Types Of Bankruptcy
Individuals can file for either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy. In, a Chapter 7 bankruptcy, some of the debtor’s property is liquidated and the proceeds are given to creditors, and most of the debtor’s unsecured debt is wiped out. In a Chapter 13 bankruptcy, the debtor is required to file a plan to repay creditors over time from current income. People who don’t qualify for a Chapter 7 bankruptcy often end up filing for a Chapter 13 bankruptcy. In most case, these are people who have a regular monthly income. A Chapter 11 bankruptcy is reserved for struggling businesses while a Chapter 12 bankruptcy is for family farmers.
Do You Qualify For A Chapter 7 Bankruptcy?
Your bankruptcy lawyer will help you in your means test to determine whether you should opt for a Chapter 7 bankruptcy. You can only qualify for a Chapter 7 bankruptcy if your income is less than the median income in Texas. So a means test is just a calculation of your income, expenses, and family size, and then comparing the result of that calculation with the median income of Texas. Some individuals that seem to have an income higher than the median income can still qualify for a Chapter 7 bankruptcy after deducting expenses. People who file for a Chapter 13 do not have to take the means test.
What You Need To Do Before Filing For Bankruptcy
People seeking to file for bankruptcy must first pay for and attend a court-approved credit-counseling course before filing. You may only have to pay about $30 to attend these courses. A credit counseling course is meant to give you an idea of whether you should file for bankruptcy or opt for a repayment plan. You can take the course online or in the offices of your lawyer’s law firm.
Another thing is that you have to fully disclose all your debts and assets for you to file for bankruptcy. The following are the assets you must disclose:
- Personal property
- financial accounts
- All your vehicles
- All personal possessions
You must also disclose all your debts such as mortgages, credit cards, student loans and other debts. A skillful and experienced Houston Bankruptcy lawyer can help you fully disclose all these assets and debts. Not fully disclosing all the information required can lead to a criminal prosecution.
How Your Bankruptcy Lawyer Can Help
Apart from helping you gather all the documentation required when you are filing for bankruptcy, you lawyer will also be by your side during the creditors’ meeting. Your lawyer will guide you on how to answer the questions creditors ask you during the creditors’ meeting. In fact, your lawyer can help you navigate the entire bankruptcy process.