Immigration & Bankruptcy Attorney In Austin Texas

Filing For Bankruptcy With A Chapter 7 Attorney

A Chapter 7 attorney can help you check for your eligibility by using the "means test." This test compares your income to the median income in your state for a household of your size. If your income is below the median, you will likely qualify. Otherwise, you must complete additional calculations to determine whether you qualify for a Chapter 13 bankruptcy instead.

To file Chapter 7, you must first complete credit counseling with an approved agency. Then you can file a petition with the bankruptcy court in your district. Your petition must include detailed financial information, such as a list of assets and liabilities, income and expenses, and a list of creditors.

An automatic stay goes into effect upon filing, which prohibits creditors from taking any further collection action against you. You must then attend a meeting of creditors, where you will answer questions about your financial situation under oath.

If you are eligible for bankruptcy and the court approves your petition, a Chapter 7 trustee is appointed to oversee the case. The trustee's role is to review your financial records, sell any non-exempt assets, and distribute the proceeds to the creditors.

The whole process typically takes about four to six months to complete. At the conclusion of the case, the remaining debts are discharged, with some exceptions such as student loans and certain tax debts. The role of bankruptcy lawyers is crucial in guiding you through the various stages of the process.

As mentioned earlier, if you are not eligible for Chapter 7 then the court may look into Chapter 13 as an alternative.

Getting Relief With A Chapter 13 Repayment Plan

Chapter 13 bankruptcy allows you to reorganize your debts and repay them over a period of 3-5 years if you have a regular income. As a first step, you must first complete credit counseling and submit a repayment plan to the court. Your repayment plan must outline how you intend to repay their debts and how you plan to use your disposable income to make these payments.

Once done submitting your repayment plan, the court appoints a Chapter 13 trustee to review it. Do note that the trustee can make any necessary adjustments to your repayment plan. After that, you will then be required to make regular payments to the trustee, who will distribute the funds to the debtor's creditors. This will continue until all debts are repaid, or until the three to five year repayment period ends.

Dismissal Of Petition Or Debt Discharge?

Filing for Chapter 7 or Chapter 13 bankruptcy in Texas requires careful consideration of several factors. Other than what was already discussed, here are some important factors to consider to increase your chances of a successful filing.

• Eligibility. Chapter 7 bankruptcy requires you to must pass the means test. Meanwhile, Chapter 13 requires you to have a regular income and your debts to fall within certain limits.
• Debts. Consider the types of debts you have, such as secured debts (mortgage, car loan) or unsecured debts (credit card, medical bills). Some debts may be discharged while others may require repayment through a Chapter 13 repayment plan.
• Property exemptions. Understanding exemptions can help you protect your assets during bankruptcy.
• Bankruptcy attorney. Hiring an experienced bankruptcy attorney can help ensure that you navigate the process correctly and make informed decisions.
• Timing. If you have recently taken out new debt, you may need to wait to file for bankruptcy to avoid accusations of fraud.
• Cooperation. Be willing to cooperate with the bankruptcy trustee and provide any information or documentation required.

By carefully considering these factors and working with a knowledgeable bankruptcy attorney, you can increase your chances of a successful Chapter 7 or Chapter 13 petition.

In summary, Chapter 7 filing is typically used by individuals and businesses who are unable to pay their debts and have little to no income or assets. The process involves appointing a trustee to oversee the liquidation process and distribute the proceeds to creditors.

Meanwhile, Chapter 13 filing allows individuals with regular income to restructure their debts and repay them over a period of three to five years. It is often used by individuals who have assets they want to protect and who have the ability to make regular payments to creditors.

It's important to carefully consider all options and work with an experienced bankruptcy attorney before filing. Doing so can help you choose the best course of action for your specific situation.