Let’s get right to the point. You have to file for bankruptcy, you’re in Texas, and you’re wondering where to go. It depends on what part of Texas you are in. For the Dallas/Fort Worth areas, you’d be filing in the U.S. Bankruptcy Court in the Northern District of Texas. It’s simple to find out where to go, but what happens once you enter the court room can be confusing. This post guides you through the steps of filing Chapter 7 or Chapter 13 bankruptcy in Northern Texas.
What Texas Chapter 7 Bankruptcy Is
Chapter 7 bankruptcy is chosen the majority of the time: about 75% of filers choose Chapter 7. This is because you quite often gain the most for the least loss. It’s a liquidation proceeding where your debts – such as credit card, medical, and mortgage debt – are discharged. It’s more than worth it. For the price of an experienced Texas bankruptcy lawyer, a nominal filing fee, and a few days work, you can discharge thousands if not tens of thousands in debt.
What Texas Chapter 13 Bankruptcy Is
Chapter 13 bankruptcy is used less, about 25% of the time. However, it can be very beneficial, and in some cases you have no other options. Under new Bankruptcy Code created several years ago, it’s been more difficult for individuals and families who make better than average income to file Chapter 7. For Texas bankruptcy, you’d need to be under the median income. If you are over, you can still file Chapter 13. This means you are not eliminating debt; you are paying most if not all of it back over 3-5 years in installments you can afford. The best part is you lose absolutely nothing this way, including a home with a mortgage you’ve been paying for years.
What Happens in Northern District of Texas Bankruptcy Court
If you file Chapter 7, you rarely appear in Texas Bankruptcy Court; it’s more common in Chapter 13 bankruptcy. You do have what’s called a 341 meeting, where you, your creditors, and your trustee will meet to go over your discharge. This is a very simple process. Quite often your creditors fail to appear, and as long as your documentation is correct and you hire a lawyer it rarely goes bad. In both cases, hiring an experienced lawyer is essential. For Texas residents, you have many options for legal counsel, but be sure you hire not just because of price; hire someone with experience.
What Your Lawyer Does
Your lawyer’s job is to make this entire process easy for you. If you file Chapter 7 or Chapter 13 in Texas Bankruptcy Court , your lawyer will be doing most of the work before, during, and after court. He or she will go over your documents, make sure they are correct, and submit them. A lawyer’s job in bankruptcy court is short, but without it you could lose the decision.
The Decision
Most bankruptcy filings are successful. What can be time consuming is rebuilding after. However, once you discharge debt or save your assets, rebuilding will be much easier.
