Texas Bankruptcy Facts
What Exactly is Bankruptcy and How Can it Help You Fight Your Debt?

Bankruptcy is a federal process that provides individuals or businesses in Texas the opportunity to cut down or eliminate their debt if they have amassed more than they can handle. It is a unique tool that has been around for a long time, but was originally used solely by creditors when debtors would not reimburse them. Nowadays, thousands of Texans file for bankruptcy protection to put an end to their financial burdens and carry on with their lives sans creditor harassment and the weight that comes with owing more money than can be paid back.

The process begins with analyzing your income and expenditures and determining the chapter that is best for your needs. It’s important to understand that only unsecured debt can be discharged under bankruptcy protection, no matter which chapter you file for. Unsecured debt is debt that is not backed by assets. These following are examples of what kinds of debt you can get rid of through Texas bankruptcy protection and which you cannot:
Unsecured Debts that May Be Eligible for Discharge:

  • - Credit card bills
  • - Medical bills
  • - Debt from business expenses
  • - Lawsuit payments

Debts that Cannot be Discharged through Bankruptcy Protection:

  • - Child support
  • - Alimony
  • - Student loans
  • - Debts obtained through fraud
  • - Debts obtained though the willful injury of another or through personal injury accidents involving alcohol intoxication

What Other Steps are Involved in the Texas Bankruptcy Process?

As per the 2005 Bankruptcy Act, any debtor petitioning the court for bankruptcy protection in Texas must complete a finance management course as a prerequisite to filing. Once the course is completed, the debtor must put together a compilation of their finances, including itemized income, assets, expenditures, and debts to determine which chapter they may most qualify for. Although there are six different chapters, Chapter 7 and Chapter 13 are the most common in Texas.

Chapter 7 Involves the liquidation of assets in exchange for the discharge of most – if not all – unsecured debt and Chapter 13 involves repaying creditors while on a payment plan. Depending on your income, amount of debt, type of debt, and whether you are an individual or business petitioning for bankruptcy determines what the best chapter for you to file is. Hiring a bankruptcy lawyer will make this decision a lot easier and smoother.

Working with a Texas Bankruptcy Lawyer

There are many times when a debtor may qualify for both Chapter 7 and Chapter 13 or a number of other bankruptcy chapters but may not know what petition to pursue. Having the advice and experience of a top Texas bankruptcy attorney can make all the difference between emerging from bankruptcy protection with your debts discharged and incurring even more debt than you started with.

Bankruptcy attorneys in Texas take care of every aspect of your case so you won’t have to worry about anything during proceedings. They will analyze your income to determine which chapter(s) you qualify for, will speak directly with creditors to formulate the best plan of action, and will represent your best interests in court every step of the way. Whether you owe debt because of unpaid credit card bills or amassed large medical costs due to a family illness, you can count on your attorney to help you move past your financial obstacles and emerge from bankruptcy protection with a favorable outcome.

A life without the burdens of debt can be yours. Contact one of our featured Texas bankruptcy lawyers today and discuss your best option for swift debt relief.