Posted on May 31, 2025 in Chapter 7 Bankruptcy

Chapter 7 bankruptcy gives certain qualifying debtors the opportunity to get a financial fresh start by discharging much of their qualifying debt. It also has many benefits, including the fact that it is a relatively short process lasting only four to six months. Additionally, debtors also get to keep several important assets that are exempt from the bankruptcy estate. However, you must qualify for Chapter 7 by passing the means test, an income calculation used to determine eligibility to file for Chapter 7. An experienced Harris County, TX Chapter 7 bankruptcy attorney can offer advice on the requirements for passing the means test.

What Is the Means Test?

To qualify for Chapter 7 bankruptcy, your income cannot exceed a certain income ceiling. This policy is in place in order to ensure that people do not take advantage of Chapter 7 bankruptcy and that only those who do not have enough income to pay their creditors can file. The calculation used for determining whether your income is below the Chapter 7 income threshold is called the means test. 

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 Posted on May 21, 2025 in Bankruptcy

Chapter 13 bankruptcy can be a powerful way for someone with a significant amount of debt to get a fresh start, all while keeping most of their assets. In a Chapter 13 case, the debtor will make a payment plan to repay their debts over three to five years, while continuing to make payments on secured debt like mortgages and car loans. It is often called the "wage earner’s plan" because it is utilized by those who have an income to make these payments. To get approval for this repayment plan, the debtor must show that it would be their "best effort" to pay back the debt. What does it mean for the Chapter 13 plan to be the "best effort" to pay back debt, and how can the debtor prove "best efforts?" Read on to find out, and speak with an experienced Austin County, TX Chapter 13 bankruptcy attorney about any further questions. 

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 Posted on May 17, 2025 in Bankruptcy

Education is a key to opportunity and, in today’s world, having a college or advanced degree can make a significant difference in the employment and earning opportunities available to you. Education is also incredibly expensive, and most people need to take out student loans to finance theirs. Sometimes, however, the burden of paying back those loans becomes too much to handle, or life events pile on unexpected financial issues that compound debt. In such cases, individuals with a great deal of debt might consider filing for bankruptcy. Student loan debt may not always be dischargeable in bankruptcy, however, and the Brunner Test can help determine whether or not it can. Speak to an experienced Galveston, TX bankruptcy attorney for advice on your specific case. 

What Happens to Student Loans in Chapter 7 Bankruptcy?

Most bankruptcy courts in Texas use the Brunner Test to determine whether you qualify to have your student loans discharged in Chapter 7 bankruptcy. Under this tough three-factor test, the court will consider whether:

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 Posted on May 07, 2025 in Bankruptcy

Certain times in life test you to the limit, yet when you come out on the other side you may have more freedom and be better off financially. If you find yourself filing for divorce and bankruptcy at or around the same time, or are considering doing so, you are likely experiencing very tough times. Practically speaking, you will want to know whether it is even possible to file for divorce and bankruptcy around the same time, and how that would work. Because divorce and bankruptcy both affect your finances, filing for one will have a practical effect on the other. An experienced Conroe, TX bankruptcy attorney can advise you on how bankruptcy and divorce affect one another.

How Does Marital Debt Work in Texas?

Texas is a community property state, meaning that both assets and debts from the marriage are owned jointly in marriage, and divided equally in a divorce. If your spouse amassed most of their debt before the marriage, you will not be liable for that debt in a divorce. If they amassed most of that debt during the marriage, you would generally be liable for a portion of that debt. However, creditors can sometimes pursue community property to satisfy one spouse's debt. How much marital debt and how much individual debt you have separate from your spouse’s debt should factor into your decision about when to file for bankruptcy.

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 Posted on April 30, 2025 in Bankruptcy

Can you file for bankruptcy by simply yelling out that you declare bankruptcy? Famous fictional boss Michael Scott from the hit television show The Office thought so, yelling "I declare bankruptcy" loudly in his attempt to find some relief from pressing financial troubles. Although most of us who face similar financial issues will not assume the process is as simple as he did, many people may be wondering how you go about filing for bankruptcy.

Bankruptcy is a formal legal process that takes place in special bankruptcy courts and has financial and legal implications. Read on to learn about how to file for bankruptcy, but be sure to speak with an experienced Brazoria, TX bankruptcy attorney who can answer your questions, present your options, and file for bankruptcy on your behalf.

What is Bankruptcy?

Bankruptcy is a process enshrined in law that allows debtors to get a financial fresh start if they are unable to pay back their debts. It also allows creditors to get repaid, generally to the extent you have money for repayment. There are several different types of bankruptcy, most notably Chapter 7 and Chapter 13. The kind of debt that can be discharged (erased), how, and other details of bankruptcy law vary greatly depending on the bankruptcy chapter a debtor files.

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 Posted on April 23, 2025 in Bankruptcy

The most obvious among the benefits of bankruptcy is the relief that comes from removing or reducing oppressive debt. However, it will negatively impact your credit score, immediately and in the long term. The good news is that this is not a permanent change. Exactly how your credit score and report are affected depends on the type of bankruptcy you file. An experienced Brazoria, TX bankruptcy attorney can explain the legal options you have for bankruptcy, the pros and cons of each, and the factors considered when deciding which type of bankruptcy best suits your situation.

What Happens to Credit Immediately After Filing for Bankruptcy?

Chapter 7 and Chapter 13 consumer bankruptcies are the two most commonly filed. Immediately after you file, meaning within the first few months, you can expect to see a drastic dip in your credit score. The reasons for this nearly instant drop include:

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 Posted on April 15, 2025 in Creditor Harassment

It is late in the evening and you receive a phone call from an unknown number. Concerned, you pick up. On the other line is a debt collector calling about a debt whose repayment you have been trying to negotiate with the creditor. They start angrily threatening that they will come and impound your car tomorrow to pay back the debt and will call your employer to tell them that you are a deadbeat. You hang up, but you keep getting repeated calls from this number. If this scenario sounds familiar, you have been the victim of creditor harassment. This type of harassment is illegal, and there are ways you can protect yourself. An experienced Montgomery County, TX creditor harassment attorney can help.

What Laws Protect You Against Creditor Harassment?

State and federal law protects you against creditor and debt collector harassment. The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from harassing you. The Texas Finance Code Chapter 392 also prohibits threatening or abusive behavior from creditors and debt collections.

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 Posted on April 06, 2025 in Bankruptcy

In Chapter 13 bankruptcy, you make a payment plan to repay your debts over three to five years. Otherwise known as the "wage earner’s" bankruptcy, Chapter 13 is meant for individuals who have more debt than they can handle, but also have a regular income they can use to make reasonable payments as part of the plan. What happens if the person who filed Chapter 13 can no longer make the payments, either because they lost the income source or for another reason? An experienced Fort Bend County, TX bankruptcy attorney can advise individuals facing difficulty making their Chapter 13 payments. 

What Happens If You Miss a Chapter 13 Payment?

You must begin making payments on your Chapter 13 plan within 30 days of filing. If at any point, your payment is a few days late, this likely will not be an issue. However, if the payment is significantly late or if you missed it altogether, that would be considered a breach of your payment plan agreement with the court. It could either result in your case being dismissed, in which case your debt would not be discharged or paid up, or it could be converted into a Chapter 7 bankruptcy. 

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 Posted on March 31, 2025 in Bankruptcy

Unfortunately, medical care is expensive, and a significant medical event can be even more so. As a result, many Americans have significant medical debt. The question is, can bankruptcy be a way out of this medical debt, and is it a good idea to file for bankruptcy to get rid of medical debt? The good news is that much medical debt can be discharged in bankruptcy. In fact, by some estimates more than half of all bankruptcies are medical bankruptcies. An experienced Harris County, TX bankruptcy attorney can advise on filing for what is sometimes called a medical bankruptcy–meaning filing for bankruptcy specifically to discharge medical debt.

Does Bankruptcy Get Rid of Medical Bills? 

The short answer is yes, bankruptcy can get rid of medical bills. Medical debt is considered unsecured debt, which is not backed up by collateral such as a home or personal property, and that type of debt is dischargeable in bankruptcy. Additionally, if you paid for your medical expenses with your credit card, credit card debt is generally also dischargeable in bankruptcy.

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 Posted on March 26, 2025 in Chapter 7 Bankruptcy

Education is often a key to success in today’s world, not to mention a worthy goal on its own. Education – and particularly higher education – can be expensive, however. With the cost of the average college tuition at private universities at just over $40,000, education will, for most people, require taking on significant debt.

When unexpected events in life make that debt unmanageable, some may consider filing for bankruptcy. They may wonder whether it is possible to discharge student loans in bankruptcy. An experienced Texas Chapter 7 bankruptcy attorney can provide advice on whether bankruptcy is the right option to discharge student loan debt. 

What Happens to Student Loan Debt in Chapter 7 Bankruptcy?

In a Chapter 7 bankruptcy, also called "liquidation" bankruptcy, most of your credit card or medical debt can be discharged. Student loans are treated differently in Chapter 7, however, Although it is possible to discharge student debts, you will usually have to show that paying back that debt would cause you significant hardship. 

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