Bankruptcy

The Role Of A Houston Bankruptcy Attorney In Chapter 7 Bankruptcy

If you are living in Houston and are filing your bankruptcy petition under chapter 7, you will need the help and assistance of an experienced Houston bankruptcy attorney. The Texas laws apply in these types of cases, as per which, the majority of your assets will be liquidated under the supervision of a bankruptcy trustee appointed by the court while the money thus received from the sale of the assets will be used to settle your debts on a priority basis as specified by the court. Finally, you will end up having your financial slate clean of debts. However, you must keep in mind a couple of things in this regard. For example, as per Texas laws of bankruptcy, you are provided some property exemptions up to a certain limit. Besides that, there are some specific types of debts that are not discharged even the court declares you as bankrupt. Some common examples of non-dischargeable debts include tax dues, student loans, alimony or child support liabilities, and other such things. Therefore, a proper planning and homework is crucial when it comes to filing petition for bankruptcy under chapter 7 of the US bankruptcy court. This is where an expert legal representation from a local, experienced lawyer can prove to be very helpful.

Review Your Situation

When you hire a Houston bankruptcy attorney to handle your case, they will first review your debt and financial situation thoroughly. A reputable lawyer will first suggest you some better alternatives so that bankruptcy can be avoided. A lawyer who straightaway files your petition does not make a right fit for you. If you are going through extreme financial hardship and none of the alternatives seem to work in your case, the lawyer will try to work out the right type of bankruptcy you should file for. They will educate you about the pros and cons of filing your petition under different chapters, such as chapter 7 and chapter 13. They will move ahead with your case only if they are sure that chapter 7 bankruptcy is a suitable option for you.

Doing Basic Homework To Ensure You Successfully Qualify

A Houston bankruptcy attorney will then educate you on the eligibility criteria that you must fulfill in order to qualify for chapter 7 bankruptcy. As per the laws, you must pass a means test, and then, must get a certificate from a court-approved credit counselor. In the means test, your regular monthly income (after deducting the regular monthly expenses) must be lower than the median income of the state. Likewise, the credit counselor must also recommend that chapter 7 bankruptcy is the right fit for you. The lawyer will try to prepare your case in such a way that you should meet both these basic qualifying criteria.

Property Exemptions

A Houston bankruptcy attorney will also educate you on the harsh fact that you will be losing most of your assets and properties once you get declared as bankrupt under chapter 7. But, at the same time, they will also show you the ways on how to save certain assets and properties, such as your home and car. They will help you to make the best use of the property exemptions as allowed by the laws.

Debt Discharge

Likewise, your Houston bankruptcy attorney will also let you know about the specific types of debts that are not going to be discharged in normal circumstances even if bankruptcy is awarded to you under chapter 7 of the US Bankruptcy Code. But, at the same time, they will also let you know that there can be some exceptions and whether and how you can qualify for the same.

Overall, as you can see, when it comes to filing bankruptcy petition under chapter the role and importance of an experienced Houston bankruptcy attorney just cannot be underestimated.


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Posted in Bankruptcy, Filing Bankruptcy | 2 Comments »

2 Responses to “The Role Of A Houston Bankruptcy Attorney In Chapter 7 Bankruptcy”

  1. John says:

    Bankruptcy lawyer fee varies according to the Chapter under which the case has been filed. The bankruptcy laws allow any body to represent his/ her case on her own. The whole process of bankruptcy is very complicated that’s why it is always advisable to hire a genuine and reputable attorney. It is true that the fee of bankruptcy lawyer look like an extra burden for a person who is already in a very bad financial position. But if you look at the work the attorney will do for you, you will be glad to give him the fee, as he will be the person who can help you to save your assets and properties from the trap of bankruptcy. The attorney fee may be some where around $10000 for a small business which files bankruptcy under Chapter 11. It will be much higher for the large corporate houses. Bankruptcy filed under Chapter 13 will cost around $3500 for the lawyer. It may also vary according to the complexities of the case. If you are filing bankruptcy under chapter 7, attorney may not charge more than $1800. In this type of bankruptcy, the court will discharge all your debts and you will not be exempted for any of your assets and property.

  2. robert says:

    Residents of Houston, filing for bankruptcy will really be in need of the assistance of a reputable attorney. The Texas laws will result in the liquidation of all your assets after the bankruptcy. There are very complexities getting to be bankrupt but you must be well aware of all the laws which are applied in your state. Before filing for bankruptcy, you should study about your financial situation thoroughly. When you hire a reputable attorney who is having some experience of such cases will suggest you some better alternatives to avoid bankruptcy, if you can save your self from being bankrupt, that will always be a better solution. You have to file for bankruptcy when there is no other option left for you. You may file under different chapters; your lawyer can guide you in this. Once you file for bankruptcy you have to qualify for a mean test then you have to attend a credit counseling session which is mandatory for every one who files for bankruptcy. It is a harsh fact of Houston bankruptcy, that you will lose your assets once you get bankrupt under chapter 7. Your attorney may guide you, how you can get your properties exempted after declared bankrupt.

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