Bankruptcy in Texas
The process of declaring bankruptcy in Texas isn’t as complicated or difficult as you may have been told; even so, it’s definitely not something that you want to go through if you don’t have to. The most common form of bankruptcy is Chapter 7. If you are interested in filing for this type of bankruptcy then you need to first go for credit counseling for six months prior to filing. Another stipulation that must be met before bankruptcy can be filed is to meet the means test. This requires you to make less than the median annual income for your state in order to file.
Filing for bankruptcy
The process by which you may file for bankruptcy in Texas consists of different steps. The first step is to contact a good bankruptcy lawyer. While this is admittedly optional, it is highly recommended. The second step is to begin collecting the needed paper work. This paperwork comes from your personal records and includes the following: itemization of current sources of income, any major financial transactions within the last 2 years, monthly living expenses, a list of all your secured and unsecured debts, list of all your property such as assets and possessions, your last two tax returns, deeds to your real estate, and any car titles. This information will be used to fill in your petition and schedules. These are then filed with the Texas district bankruptcy court.
Once you file for bankruptcy in Texas, the court will take legal control over all of your debts as well as any property that was not declared as exempt. A trustee will then be appointed by the court to see that your creditors are paid as much as possible. The trustee will ask you questions during the meeting with your creditors and will examine the paperwork to see how much they will be paid.
Exemptions in the state
When you file for chapter 7 bankruptcy in texas, you will be given certain exemptions on your property so that your creditors may not take it. Each state has its own list of exemptions. The exemptions in the state of Texas include: homestead, personal property, insurance, property of a business partnership, pensions, public benefits, tools of the trade, and wages. The subject of exemptions can be very intricate, so it is best to have a lawyer handle this. He or she will be able to look over your assets and determine which may be declared as exempt.