Texas bankruptcy court can seem scary. But once you get this process done, you can start seeing some financial changes in your life. If you’re filing Texas Chapter 7 bankruptcy, you might save tens of thousands of dollars. If you file Chapter 13 bankruptcy, you may stop a foreclosure or prevent other assets from being taken. The advantages of bankruptcy are many. By filing correctly, you can change your life. But first you must know what to expect in bankruptcy court. Lets find out.
Know If You’re Eligible
First off, before you do anything, find out if you’re eligible for Texas bankruptcy. You have the options of Chapter 7 personal bankruptcy or Chapter 13 personal bankruptcy. For Chapter 7 bankruptcy, the current median incomes from one person to four are $37,676, $54,288, $55,534, and $64,420. Chapter 13 bankruptcy eligibility is based on what you owe. You are eligible if you have less than $360,475 in unsecured debts and secured debts are less than $1,081,400. Secured debts are monies owed like your home and car. Unsecured debts have no collateral, and are more like credit card and medical bills. Once you know if you are eligible, you can consider filing bankruptcy. If you are still unsure, a Texas bankruptcy lawyer can help you.
Know the Rules
There are rules to bankruptcy. You can’t, for example, just spend on your credit cards for months prior to filing bankruptcy. You cannot wait until a foreclosure process has started to file. You cannot file every year; you can only file Chapter 7 every seven years for example. These rules are all listed online, especially at USCourts.gov. If you are unsure, you can consult with your lawyer.
You can’t lie on forms, other documentation, and in court. You have to be honest. This is important, as you stand to do well if you simply tell the truth. Do not hide assets. If you want to have a debt discharged, you must list it. If you are uncertain of a law, and break it, make that clear early on – in other words, stop it before it becomes a problem. If you make mistakes, that is okay, but if you break rules knowingly you can have your bankruptcy delayed if not denied.
Be ready for Texas bankruptcy court. Be prepared for questions. Be sure you go through proper credit programs prior to going to court. There is nothing to be scared of; your lawyer will take care of most of the issues. You have little role for Chapter 7 bankruptcy during court, and a minor role in Chapter 13. Most of it will be taken care of by your lawyer, but be sure to hire a good one.
Be On Time at All Dates
One common problem in Texas bankruptcy is missing court dates and meetings. You may miss your actual first court date or the meeting of creditors. This can delay your bankruptcy and hurt your chances of success. Again, you have no major role in the bankruptcy, but must be prepared to answer some questions.
Consult with a Lawyer
The best way to succeed in bankruptcy court is to hire an experienced Texas bankruptcy lawyer. He or she should have court room experience. Your lawyer should be close to you so you can communicate on a regular basis. You should be able to communicate well with him or her. You should be able to afford them in case there are delays. And you should be able to get all your questions answered.