Are you eligible for Texas bankruptcy? How complicated is the legal process? This blog guide helps you overcome some bankruptcy hurdles which, if you can get past them, can help in protecting assets, discharging debts, and giving you a fresh start.
Ineligible for Texas Chapter 7
From one person to a family of four, the numbers for Texas Chapter 7 eligibility are $38,80, $55,660, $59,011, and $66,145. If you have a larger family, your income will be more. What if you make too much money? If you have recently lost your job, where you made a high income, you can likely be eligible after some time. Say you make $100,000 annually, but you lose your job, and have no income but unemployment. Eligibility is based on your income for the past six months; if you wait some time, you likely will be eligible. If not, while Chapter 7 is more effective at discharging unsecured debts like credit and medical, Chapter 13 has some advantages too.
Ineligible for Chapter 13
If you owe too much money, you may not be eligible for Chapter 13 bankruptcy. If your unsecured debts are over $336,900, you cannot file. Your secured debts, monies owed on your home and car for example, cannot be more than $1,01,650. These rules give you a lot of leeway. If your debts are this extreme, it’s best to consult with some financial help. Usually, if you are ineligible for Chapter 7, you will be eligible for Chapter 13.
What solutions if you cannot file?
Chapter 7 bankruptcy is very effective in discharging unsecured debts, such as credit card and medical monies owed. If you can’t file because you make too much money, you may have a high number of valuable assets you want to keep such as an expensive home, car, jewelry, and other assets. Therefore, it may be better to file for Chapter 13, especially in Texas where the homestead exemption has no limit. You can protect your home from foreclosure, your car from repossession, and other valuable assets and monies from being taken.
Paying Fees for Bankruptcy
If you are filing Chapter 7 bankruptcy, paying fees to both the courts and a lawyer can seem impossible. While for some of us paying $299 to file Chapter 7 is reasonable, if you’re unemployed and don’t know where your next rent or mortgage payment will come from, it may be high. Any way you can get it, it’s worth it. Why? If you discharge $20,000 in debt by paying $299, it can save you a lot of money. Should you hire a lawyer? Texas bankruptcy is unique, as all states are different, and hiring a Texas lawyer is crucial. A professional will not charge you huge amounts of money, and the more you owe the better return you’ll get.
Handling Creditors
Creditor harassment can and should stop right after filing bankruptcy. If it continues, refer the creditors to your lawyer. You might also write them a letter. At the meeting of creditors – also called the 341 meeting – creditors do have a chance to appeal your chance at bankruptcy, but few do.
Who can help?
The more money you owe, the more you own, the more value a Texas bankruptcy lawyer gives you. To put it simply, he or she can help you save tens of thousands of dollars, protect your home and car, and give you and your family a fresh start.
