What you need to know about filing for bankruptcy in Texas

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the Bankruptcy proceedings can be a confusing and daunting task. Bankruptcy is a legal process that allows people in financial need to pay off or remove many of the debts they owe without having to repay them.

If you live in Texas and have been grappling with debt for a while, it may be time to file for bankruptcy. Bankruptcy is a powerful tool that enables individuals and families to reorganize their finances and return to financial stability.

Here’s What You Need to Know About Filing for Bankruptcy in Texas:

Understand the types of bankruptcies in Texas

There are two types of bankruptcies that people in financial difficulty can file – Chapter 7 and Chapter 13.

Chapter 7 bankruptcy, also known as liquidation bankruptcy, is a type of bankruptcy that allows individuals or families to settle their debts and start over by owing to getting rid of most (if not all) of their unreleased debts.

On the flip side, Chapter 13 bankruptcy also helps the people of Texas manage their debts by putting them on a supervised repayment plan administered by the individual state Chapter 13 trustee.

The answer to the question Chapter 7 is the right bankruptcy plan or whether you should go for Chapter 13 depends on your specific situation, income, amount of debt secured, and so on. When making this decision, it is best to contact a licensed attorney who has experience filing bankruptcy proceedings in your state.

Which papers and documents you need

You must obtain and prepare certain paperwork and paperwork before you can file for bankruptcy in Texas. In addition, you will also need to attend a meeting with the attorney who will help you file for bankruptcy, in their office or at another agreed location.

In order to file for bankruptcy, you need to collect many documents:

  • Financial information about you and your spouse if you submit it together;
  • Pay slips or pay slips for the last 60 days. This document should show all wages of everyone living in the household, including overtime;
  • A list of all creditors and the amounts you owe them, along with their contact details;
  • A list of properties that are exempt from your state;
  • You will also need to make a list of all properties that are exempt from Texas.

What are the bankruptcy costs?

Filing for bankruptcy in Texas is not an easy decision, nor is it cheap. Under the new bankruptcy laws, it will cost you to apply for Chapter 7 $ 338 Submit your application to the court, although the fee may change. Additionally, the attorney filing this type of bankruptcy on your behalf will likely charge more than that amount for their services.

The filing fee for bankruptcy under Chapter 13 is $ 313 and can change at any time. These costs only cover filing for bankruptcy, while the attorney will charge an additional amount for the preparation and submission of all required paperwork and paperwork to the court.

How long does it take

Filing for bankruptcy in Texas can take anywhere from a few weeks to a few months. In most cases, however, it usually takes three to four months, depending on your situation and the complexity of your case.

How long it takes to get your relief also depends a lot on what type of debt you have, how many liabilities you have, and how many creditors are trying to collect those debts. In addition, once you file for bankruptcy in Texas, your creditors will no longer be able to contact you. This means that all further collection attempts are illegal and punishable.

Protect yourself from filing for bankruptcy

It is important to consider all of your options before filing for bankruptcy in Texas. If you are behind with your payments, your best bet is to reach out to creditors, credit card companies, loan providers, etc., and work out a payment plan that fits your budget.

This will help keep your debt from piling up, while also giving you the time to come up with a plan that will allow you to repay your debt. In addition, you can speak to a licensed attorney about other ways to settle your debts.

Final thoughts

Each individual or family has their own goals and challenges that they try to overcome when filing for bankruptcy in Texas. Regardless of why you need to file for bankruptcy, however, you need to be aware of all the pros and cons of making that decision.

Remember, you have options and the most important thing is to make a plan for your future.

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