A financial crisis can find you unprepared and prevent you from paying bills, debts, or meeting your other financial needs. When facing financial hardship, filing for bankruptcy may be the ideal way to get financial relief and achieve the fresh start you need. A one-on-one consultation with a knowledgeable Texas bankruptcy attorney is important to review your options and receive proper guidance.
At Oliva Law Bankruptcy, we are committed to offering experienced legal services and guiding clients through the complexities of Chapter 7 bankruptcy filings. Our attorneys will be available to review the details of your case, discuss your unique situation, and help you understand your possible options. As your legal counsel, we will provide you with the comprehensive legal guidance and advocacy you need throughout every step of your bankruptcy proceedings.
Oliva Law Bankruptcy is proud to serve clients in McAllen, Brownsville, Harlingen, Corpus Christi, and throughout the Rio Grande Valley, Texas.
Chapter 7 bankruptcy, also known as "liquidation" bankruptcy, is a debt relief option designed to help individuals and businesses wipe out most of their general unsecured debts and offer them a needed financial "fresh start."
When filing for Chapter 7 bankruptcy, the Texas court will appoint an independent contractor (trustee) to oversee your bankruptcy case. The trustee will be responsible for collecting and selling your non-exempt assets. The trustee will then pay your creditors using the net proceeds from the asset sale.
Since bankruptcy is governed by federal laws, it is usually the same across all states. When filing bankruptcy, assets are classified into non-exempt and exempt assets.
Non-Exempt Assets: These are assets and properties that can be used or sold by the trustee in a Chapter 7 bankruptcy case. They include your second cars, vacation homes, second homes, bank accounts, stocks, bonds, family heirlooms, cash, and other investments.
Exempt Assets: These are properties that qualify for bankruptcy exemptions. They include your primary home, car, furniture pieces, household appliances, and clothing. You will still be left with your exempt assets in a Chapter 7 bankruptcy case.
Filing Chapter 7 bankruptcy helps individuals and businesses in the following ways:
Chapter 7 won't do the following:
Qualifying for Chapter 7 bankruptcy in Texas requires you to pass the bankruptcy means test and attend credit counseling courses.
To qualify for Chapter 7 bankruptcy, your income must pass the bankruptcy "means test." If your income is less than the median income for your household size in Texas, you automatically pass. However, if your family income is above the state's median, in order to qualify for Chapter 7, you will need to complete the bankruptcy means test. The test will review your financial records, deduct certain expenses, and determine your disposable income. If your disposable income is too low to allow for the repayment of any outstanding debts then you may qualify for Chapter 7.
Those that don’t qualify for Chapter 7 bankruptcy may be better suited for Chapter 13.
Qualifying for Chapter 7 bankruptcy also requires that your income is less than the Texas median income for your household size.
*Add $9,000 for each household in excess of 4 members.
The figures listed are for 2020, but they're updated regularly. Our attorneys at Oliva Law Bankruptcy can help determine whether you qualify for filing Chapter 7.
Before filing your bankruptcy case, you are required to complete a session with an approved credit counseling provider within six months prior to filing. After filing your bankruptcy case, but before the court issues your discharge, you also need to take a debtor management course from a U.S Trustee approved agency in Texas. Both courses usually take about two hours to complete, and you can attend online.
Filing for Chapter 7 bankruptcy is a common occurrence in Texas. According to the American Bankruptcy Institute, of the 35,069 bankruptcy filings in the state of Texas in 2019, nearly 17,829 were Chapter 7 cases. If you are considering filing for Chapter 7 bankruptcy, it is important that you speak with a knowledgeable Texas bankruptcy attorney for detailed guidance and to protect your rights.
Oliva Law Bankruptcy has been providing outstanding legal services and handling bankruptcy-related matters for over 15 years. Attorney Marcos Oliva and his experienced bankruptcy attorneys can review your unique situation, help you understand your available options, and determine whether or not, Chapter 7 is the right debt relief option for you. Our team will provide you with the comprehensive legal counsel and strong representation you need throughout your bankruptcy process.
If you're going through financial difficulty and considering filing for bankruptcy, don't go through it alone. Contact Oliva Law Bankruptcy today to schedule a free one-on-one consultation. Our attorneys can offer you the detailed legal counsel and advocacy you need to navigate key decisions in your bankruptcy proceedings. We proudly serve clients in McAllen, Brownsville, Harlingen, Corpus Christi, and throughout the Rio Grande Valley, Texas.