Posted on August 14, 2025 in Bankruptcy

Losing a job is stressful under virtually any conditions, but losing your income while under a Chapter 13 repayment plan can leave you devastated. Chapter 13 bankruptcy does provide some flexibility regarding job loss. Texas bankruptcy law allows certain modifications to your Chapter 13 repayment plan, temporary relief, or, in some cases, a conversion to Chapter 7 bankruptcy.

You must act quickly following the loss of a job; creditors can potentially push to have the case dismissed in response to lapsed payments, and this is not the outcome you want. When you work closely with your Austin County, TX bankruptcy attorney, you can expect the best outcome possible.

Chapter 13 Bankruptcy is Also Known as the "Wage-Earner Plan"

Filing Chapter 13 bankruptcy requires that the filer have a reliable income. Chapter 13 is for individuals and sole proprietors of a business, but not corporations or partnerships. Income can come from wages, self-employment, Social Security, or rental properties, but it must be regular and stable.

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 Posted on August 06, 2025 in Bankruptcy

Student loan debt in the United States now exceeds $1.7 trillion – the second-highest category of consumer debt after mortgages. These debts can significantly impact the quality of life for borrowers, including delaying major life events such as starting a family and homeownership. Student loan debt disproportionately affects students from low-income families and communities of color.

As of 2025, Texas borrowers may have more options for discharging student loans in bankruptcy. Historically, federal student loans have been virtually impossible to eliminate through bankruptcy, barring a showing of "undue hardship." Proposed reforms may soon change that landscape, making it easier for those filing for bankruptcy in Texas to include student loans.

If you are considering filing for bankruptcy, having a highly experienced Fort Bend County, TX bankruptcy attorney by your side can help ensure your bankruptcy goes smoothly. While bankruptcy can be a difficult step to take, it can give you the fresh financial start that you need and deserve.

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 Posted on July 31, 2025 in Bankruptcy

Texas ranked third among states with the highest number of bankruptcies, following California and Florida. This statistic is not particularly surprising, given that these states also have some of the highest populations. In 2024, Texas reported 31,520 bankruptcies. Many factors contribute to why someone files for bankruptcy, including job loss, medical bills, credit card debt, and student loan debt. More than 65 percent of Americans cited medical bills as the primary reason for filing bankruptcy.

Receiving an inheritance while you are in the middle of a Texas bankruptcy can definitely muddy the waters. While inheritance can be a financial blessing, it can also definitely complicate bankruptcy. The outcome will depend on the type of bankruptcy you filed (Chapter 7 or Chapter 13) and when you became entitled to the inheritance. Texas bankruptcy laws do offer some protections, but they are not foolproof. If you are worried about a pending inheritance, discuss the issue with your Waller County, TX bankruptcy attorney.   

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 Posted on July 29, 2025 in Bankruptcy

Perhaps you agreed to co-sign a loan for a friend or family member, never expecting to be dragged into financial chaos. Unfortunately, co-signing for a loan is a much more serious act than most people realize. If the primary borrower defaults on a loan you co-signed, you could be facing aggressive collection calls and repossession threats. If either you or the primary borrower files for bankruptcy, the situation becomes much more complex.

Texas bankruptcy does offer some protection for co-signers, but it does not automatically wipe away financial responsibility or prevent repossession. It is important to consult with a knowledgeable Austin County, TX bankruptcy attorney to ensure you fully understand your rights, risks, and remedies when bankruptcy and repossession collide.

What Is the Role of a Co-Signer in a Texas Loan?

The most important thing to know about being a co-signer on another person’s loan is that while you likely have no ownership rights to the property, you are just as legally obligated to repay the loan as the primary borrower if he or she fails to make those payments. Your credit is affected by the loan, both positively and negatively, and you take on equal responsibility for the loan.

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 Posted on July 15, 2025 in Bankruptcy

If you are considering filing for bankruptcy, your biggest worry may be whether or not you will be allowed to keep your home. Bankruptcy laws vary significantly from state to state, and, in some states, you have the option of choosing between state bankruptcy laws and federal bankruptcy laws to secure the best exemptions. The homestead exemption in Texas stands out dramatically compared to the stricter, often capped limits in other states.

In fact, Texas is second only to Florida in terms of the best homestead exemptions. Of course, filing for bankruptcy is a big decision, regardless of the homestead exemptions, and it is a decision that you will consider carefully. If you have made the decision to file for bankruptcy, you now have to determine whether Chapter 7 or Chapter 13 bankruptcy is best for you and your situation. It can be extremely beneficial to speak to a knowledgeable Austin County, TX bankruptcy lawyer.  

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 Posted on July 08, 2025 in Bankruptcy

The financial risks associated with aging include reduced income, increased healthcare costs, and credit card debt, not from buying fun or frivolous items, but from charging necessary living expenses. The representation of older Americans among those likely to file for bankruptcy has never been higher.

In fact, there has been a five-fold increase in the percentage of older individuals filing for bankruptcy over the past few years. We expect that growing older will bring peace of mind, not financial panic. Unfortunately, many Texas seniors face overwhelming debt, primarily from medical bills, credit card debt, student loans, and providing financial assistance to loved ones.

Many seniors feel as though bankruptcy is a failure after spending their entire lives working and paying their bills. Yet for many seniors, bankruptcy can offer real relief and a pathway to a more secure future. If you are a senior citizen facing financial hardship in your golden years, it is important that you consult with a knowledgeable Liberty County, TX bankruptcy attorney.

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 Posted on June 30, 2025 in Bankruptcy

Filing for bankruptcy can provide much-needed relief from overwhelming debt, but it is important to understand that not all debts can be wiped clean. Federal bankruptcy law specifically excludes certain types of debts from discharge, meaning you would still be responsible for paying them even after your bankruptcy case closes. The good news, however, is that most of the common types of debts such as credit card debt are dischargeable. An experienced Conroe, TX bankruptcy attorney can advise you on whether filing for bankruptcy is right for you.

What Types of Debts Cannot Be Erased in Bankruptcy?

Priority Debts 

Tax obligations top the list of non-dischargeable debts. Recent income taxes (typically within three years of filing), payroll taxes, and tax penalties generally cannot be eliminated through bankruptcy. However, older income tax debts may qualify for discharge under specific circumstances.

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 Posted on June 23, 2025 in Chapter 13 Bankruptcy

Chapter 13 bankruptcy offers a lifeline for people struggling with debt. Unlike Chapter 7 bankruptcy, which liquidates assets to pay back creditors, Chapter 13 creates a manageable repayment plan that generally lasts three to five years. However, not everyone qualifies for this "wage earner's plan." 

Those who do can take advantage of Chapter 13’s unique benefits, including the ability to keep certain non-exempt property such as a second home or valuable personal assets. Speak to our experienced Brazoria, TX Chapter 13 bankruptcy attorney to figure out if you qualify for Chapter 13 bankruptcy.

How Do You Qualify for Chapter 13?

Maintain a Regular Income

Because you have to make payments into a plan, you must have an income to file Chapter 13. The income requirement does not mean that you must have a full time job, however. Social Security benefits, disability payments, pension income, rental property income, or even regular unemployment benefits can help you qualify. However, your income must be steady and predictable enough to make monthly plan payments for the three to five year Chapter 13 duration. Self-employed individuals and business owners can also file Chapter 13, but they will need to demonstrate consistent income patterns.

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 Posted on June 17, 2025 in Bankruptcy

Whether you file for Chapter 7 or Chapter 13 bankruptcy, either chapter follows a fairly linear process. However, sometimes questions, disputes, or unexpected issues arise in the course of your bankruptcy. The process whereby these disputes are addressed in bankruptcy is called an adversary proceeding, and it is a type of lawsuit that is part of the bankruptcy case. Adversary proceedings may only be filed in certain specific circumstances and only by interested parties. They follow many of the same rules as regular lawsuits, including formal complaints, motions, and court hearings. An experienced Liberty County, TX bankruptcy attorney can represent you throughout the bankruptcy process and in an adversary proceeding.

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 Posted on June 05, 2025 in Chapter 11 Bankruptcy

When businesses face financial headwinds, filing for bankruptcy can be a way to grapple with overwhelming debt and declining profits. Federal bankruptcy law offers a number of paths for businesses to file for bankruptcy. In Chapter 7 bankruptcy for small businesses, the business is sold and its assets liquidated, for instance.

But not all bankruptcy chapters spell the end of a business venture. Chapter 11 – known as the reorganization bankruptcy – gives businesses a chance to file for bankruptcy while continuing operations. This can provide organizations with an opportunity to get a new lease on life following Chapter 11. 

Although Chapter 11 can be expensive and may not be the best fit for small businesses or sole proprietorships, who might benefit more from Chapter 11 Subchapter V or Chapter 13, respectively, it does have significant benefits. An experienced Montgomery County, TX Chapter 11 bankruptcy attorney can advise your organization on the benefits of reorganizing.

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