How to File for Bankruptcy
Filing bankruptcy used to be a fairly straightforward and simple process. However, recent laws have changed all of that. Bankruptcy procedures today can be quite complex, and if you don't do everything properly, you may have to begin over again. For this reason it is in your best interests to work with a knowledgeable and experienced College Station Chapter 7 bankruptcy lawyer.
One of the major recent changes in the bankruptcy laws is that you must complete two courses. The first one is a credit counseling course, and this must be completed through an approved agency. There is a fee for this course, though you may take it online. You will need to complete this course within 180 days prior to filing bankruptcy.
The second course, Debtors Education, must be completed before your bankruptcy will be discharged. Your College Station Chapter 7 bankruptcy lawyer will tell you that it is best to complete each of these early to avoid delay of your bankruptcy.
Chapter 7 and Chapter 13
Most consumer bankruptcies are filed under either Chapter 7 or Chapter 13. The former is a total liquidation bankruptcy in which you are able to discharge all of your indebtedness, with certain exceptions. In order to qualify for a Chapter 7 you need to pass a means test. This is a lengthy form which determines whether your income is below the state median for a family of your size. You may still be able to qualify for Chapter 7 if your income is higher, but only if you can bring the amount down enough through subtracting certain exemptions.
If you do not qualify for Chapter 7 through the means test you can file a Chapter 13 bankruptcy. This is referred to as a reorganization of debt, and requires that you pay a certain amount for either three or five years, after which your bankruptcy will be discharged.
Choosing Your Exemptions
Bankruptcy is governed both under federal and state laws. As such, you can choose to take exemptions either through Texas or federal guidelines; however, you cannot take from both.
You should also keep in mind that certain debts are not dismissible through any type of bankruptcy. These include, among others, student debts and certain federal income taxes.
We Can Help You with Your Bankruptcy
If you need to file bankruptcy it is very important that you have strong legal representation to protect your rights. Call a College Station Chapter 7 bankruptcy lawyer with Peterson Law Group today at 979-703-7014.