Steps to Take When Filing for Bankruptcy
- Gather Financial Information. …
- Schedule a Consultation with a Texas Bankruptcy Attorney. …
- Determine If Bankruptcy Is Right for You. …
- Choose the Right Type of Bankruptcy. …
- Get Credit Counseling. …
- Prepare Your Bankruptcy Petition. …
- File Your Bankruptcy Petition. …
- Attend a Meeting of Creditors.
How long does it take to file Chapter 7 in Texas?
four to six months
How long does it take to file Chapter 7? A Chapter 7 bankruptcy can take four to six months to do, from the time you file to when you receive a final discharge – meaning you no longer have to repay your debt. Various factors shape how long it takes to complete your bankruptcy case.
What is the income limit for Chapter 7 in Texas?
In order to determine what the maximum income is to get you to qualify for a chapter 7, we have to know some additional information.
About 50% of my clients are above-median income but we are still able to get them to qualify.
| Household Size | Maximum Gross Annual Income |
|---|---|
| 1 | $50,902.00 |
| 2 | $66,899.00 |
How do you qualify for Chapter 7 in Texas?
If your total monthly income over the course of the next 60 months is less than $7,475 then you pass the means test and you may file a Chapter 7 bankruptcy. If it is over $12,475 then you fail the means test and don’t have the option of filing Chapter 7.
What are the qualifications for Chapter 7?
Who Qualifies for Chapter 7 Bankruptcy?
- The average of your monthly income in the previous six months must be lower than the median income for the same-sized household in your state; otherwise, you must pass what’s known as a means test. …
- You can’t have filed for Chapter 7 bankruptcy in the previous eight years.
What happens if Chapter 7 is denied?
Denial of your Chapter 7 discharge doesn’t stop the bankruptcy case. The Chapter 7 trustee will continue to gather and liquidate any non-exempt assets, but the debtor does not receive the benefits of the Chapter 7 discharge.
Can I buy a car after filing Chapter 7?
While you can purchase a car after bankruptcy, you should expect to pay a higher interest rate if you take out a loan. Although waiting for your credit score to improve can lower your rate, it’s not always possible. Research all of your lending options before you take out a loan.
How much money is too much for Chapter 7?
If your annual income, as calculated on line 12b, is less than $84,952, you may qualify to file Chapter 7 bankruptcy. If it’s greater than $84,952, you’ll have to continue to Form 122A-2, which we’ll review in the next section.
How do you pass Chapter 7 means test?
Expenses That Will Help You Pass the Chapter 7 Means Test
- House, car, and other secured debt payments. …
- Overdue taxes. …
- Court-ordered payments and arrearages. …
- Child care. …
- Involuntary deductions. …
- Health, disability, or term life insurance. …
- Other healthcare expenses. …
- Education for employment or a disabled child.
What if my income goes up after filing Chapter 7?
If you are part of a Chapter 7 bankruptcy and your income increases, speak with an attorney about whether you need to inform the court. The increase may not change your circumstances since a Chapter 7 bankruptcy is based on your financial circumstances at the time of your filing.
How long does it take to rebuild credit after Chapter 7?
Most experts say it will take 18 to 24 months before a consumer with re-established good credit can secure a mortgage loan after discharge from personal bankruptcy.
Can I keep my cell phone in Chapter 7?
In most cases, clients can keep their cell phones without experiencing any service interruptions. However, if you rent or finance your cell phone instead of owning it outright, you may be asked to surrender it.
Is Chapter 13 or 7 better?
Most consumers opt for Chapter 7 bankruptcy, which is faster and cheaper than Chapter 13. The vast majority of filers qualify for Chapter 7 after taking the means test, which analyzes income, expenses and family size to determine eligibility.
What do you lose when you file Chapter 7?
Chapter 7 bankruptcy erases or “discharges” credit card balances, medical bills, past-due rent payments, payday loans, overdue cellphone and utility bills, car loan balances, and even home mortgages in as little as four months. But not all obligations go away in Chapter 7.
What would disqualify me from Chapter 7?
5 Reasons Your Bankruptcy Case Could Be Denied
The debtor failed to attend credit counseling. Their income, expenses, and debt would allow for a Chapter 13 filing. The debtor attempted to defraud creditors or the bankruptcy court. A previous debt was discharged within the past eight years under Chapter 7.
What is the minimum amount to file bankruptcies?
To be eligible to file for bankruptcy you must: owe at least $1,000 and. have debts greater than the sale value of your assets and. are unable to pay your debts when they are due.
How long does it take to rebuild credit after Chapter 7?
Most experts say it will take 18 to 24 months before a consumer with re-established good credit can secure a mortgage loan after discharge from personal bankruptcy.
How long can I keep my car after filing Chapter 7?
The items that are exempt from liquidation, and the value that can be exempted, varies by state. If you file for Chapter 7 bankruptcy and local bankruptcy laws allow you to exempt all of the equity you have in your car, you can keep the vehicle—as long as you’re current on your loan payments.
How long do you have to live in Texas to file bankruptcies?
730 days
You can file for bankruptcy in Texas after living there for more than 180 days. However, you must live in Texas much longer before using Texas exemptions—at least 730 days before filing, to be exact. Otherwise, you’d use the previous state’s exemptions.
How is Chapter 7 means test calculated?
Total average monthly payment for all mortgages and other debts secured by your home. To calculate the total average monthly payment, add all amounts that are contractually due to each secured creditor in the 60 months after you file for bankruptcy. Then divide by 60.
What expenses are allowed in Chapter 7?
What Living Expenses are Allowed After Bankruptcy?
- Rent or home mortgage payments.
- Utilities like electricity, natural gas, cable TV, internet service and phone service.
- Municipal services like water, sewer and trash pickup.
- Regular expenses like food, clothing, and laundry.
What is considered income in Chapter 7?
Section 101(10A) of the Bankruptcy Code. This may include income and payments from some unexpected sources. As expected, all income from your employer is included—all gross wages or salary, as well as any tips, overtime, shift differentials, and commissions, WITHOUT subtracting any tax or other deductions.