If you file bankruptcy in Dallas Texas, you would go to the Northern District of Texas. But before you do, there are some things about filing Dallas bankruptcy you should know, especially if you plan on filing for Chapter 13. This post can help.
Eligibility for Texas Chapter 7
You may also be eligible for Chapter 7 bankruptcy. Most all citizens are eligible for Chapter 13, unless you have hundreds of thousands in debt. If you want to file Chapter 7, you must be be below the median income for the state. Here are the numbers.
1 Person – Annual Income Less Than $38,801
Family of 2 – Annual Income of Less than $55,660
Family of 3 – Annual Income of Less Than $59,011
Family of 4 – Annual Income of Less than $66,145
Add $7,500 in most cases per any additional family members.
If you make less than these numbers, you may consider filing Chapter 7. It can be very helpful in cases where you have a lot of debt you simply cannot afford, such as credit, medical, and mortgage debt.
Why Chapter 13?
If you’re a Dallas resident considering personal bankruptcy, you may wonder why you would not choose Chapter 7. Clearly this form can help in ways Chapter 13 cannot. In some cases you are not eligible. In others, you do not want to lose your home. Dallas Chapter 13 puts into motion a plan for keeping all your assets. If you fear foreclosure on your home, Chapter 13 is a far better option in most cases (though you can set up a payment plan for your home with Chapter 7 by working with your trustee). What happens is the moment you file, a judge will put an “automatic stay” on your home, stopping any foreclosure proceedings. If you file early enough, before the papers are filed, you don’t just stall the foreclosure: you can completely stop it.
Also, if your problem isn’t credit or medical debt, Chapter 13 can be easier. It’s a 3-5 year plan where you pay back debts, but these are designed to be affordable. If you have no job and little to no income coming in, Chapter 7 is better. If you have a job and some income, a Chapter 13 debt repayment plan can be very beneficial. It just depends on the kind of debts and assets you have.
How do you file?
You typically hire an attorney first, then file with the court. The fee for filing Chapter 13 bankruptcy is nominal, $274. Lawyer fees cost more, but are designed to be affordable. After all, you’re not filing bankruptcy because you’re rich. Most Texas bankruptcy lawyers charge from $1,000 to $2,500 to handle a case. This comes with many benefits. They can help you fill out documentation, successfully submit to the court, represent you in court, help with your debt repayment plan, stop creditor harassment, give tips on keeping all your assets including your home, and also advise you on how to avoid future bankruptcy.
The First Step
Are you ready to file for Chapter 13 bankruptcy? Unsure if it’s right for you? It takes some time to make the decision. The important thing is to not make it alone. You can consult with an experienced Dallas bankruptcy attorney today to see if Chapter 13 is best for you.