Filing for bankruptcy in Texas is a complex process that involves several steps and requirements. It is highly beneficial to walk through the steps of filing for bankruptcy in Texas and learn the important things you need to know to successfully navigate the process.
Determine Which Type of Bankruptcy to File
Your Dallas, TX bankruptcy lawyer from Leinart Law Firm knows that there are two main types of bankruptcy that individuals can file in Texas: Chapter 7 and Chapter 13. Chapter 7 bankruptcy is a liquidation bankruptcy that allows you to discharge most of your debts, while Chapter 13 bankruptcy is a reorganization bankruptcy that allows you to restructure your debts and pay them off over time.
To determine which type of bankruptcy is right for you, you should consult with your lawyer. They can evaluate your financial situation and help you decide which type of bankruptcy will best meet your needs.
Take Credit Counseling
Before you can file for bankruptcy in Texas, you must complete credit counseling with a court-approved agency. The purpose of credit counseling is to help you understand your financial situation and explore alternatives to bankruptcy.
You must complete credit counseling within 180 days before filing for bankruptcy. Once you have completed the counseling, you will receive a certificate that you must submit to the court as part of your bankruptcy petition.
File the Bankruptcy Petition
To file for bankruptcy in Texas, you must complete a bankruptcy petition and file it with the bankruptcy court in your area. The petition includes information about your income, expenses, assets, and debts.
In addition to the bankruptcy petition, you must also submit several other forms, including schedules of your assets and liabilities, a statement of your financial affairs, and a means test calculation.
Attend the Meeting of Creditors
After you file your bankruptcy petition, you must attend a meeting of creditors. This meeting is typically held 20-40 days after you file your petition and is conducted by the bankruptcy trustee assigned to your case.
At the meeting, the trustee will ask you questions about your financial situation and your bankruptcy petition. Creditors may also attend the meeting and ask you questions.
Complete Financial Management Course
After the meeting of creditors, you must complete a financial management course with a court-approved agency. The purpose of the course is to help you manage your finances and avoid future financial problems.
Once you have completed the course, you must submit a certificate of completion to the court.
Discharge of Debts
If you file for Chapter 7 bankruptcy in Texas, your debts may be discharged within a few months after filing. If you file for Chapter 13 bankruptcy, your debts will be discharged after you have completed your repayment plan.
In either case, the discharge of your debts will provide you with a fresh start and relieve you of your obligation to pay most of your debts.
It’s true that filing for bankruptcy in Texas can be a challenging process, but it can also be a valuable tool for getting your finances back on track. By working with a bankruptcy lawyer and following these steps, you can successfully navigate the process and get the debt relief you need. Reach out to a local office for more help with your bankruptcy plan.
