Do I qualify for bankruptcy in Texas?
Many people assume that they have no choice but to file for bankruptcy when they are facing foreclosure and are unable to make their payments. This is not necessarily true. Just because you are severely in debt does not mean that you qualify to file under
Chapter 7 or
Chapter 13 of the U.S.
Bankruptcy Code. Any individual must first take the
means test to determine whether or not they make enough money to afford their living expenses and their credit or loan payments, even in part. If you are not eligible for bankruptcy, you may be able to find relief through an alternative, such as debt negotiation or a loan modification. If you have any questions about your options do not hesitate to contact a Beaumont bankruptcy lawyer from our firm.
Requirements for Bankruptcy in Houston and Beaumont
In order to qualify for bankruptcy, you must make less disposable income than the national average. "Disposable income" is calculated by deducting your monthly living expenses from your monthly income, which is accomplished through the aforementioned means test. If you have no income or no job, you may qualify for Chapter 7, which involves liquidation of your non-exempt assets followed by the discharge of any remaining debt. If you have steady income but are still unable to repay your debt in full, you may be eligible for Chapter 13. You will negotiate with your creditor and agree upon a three- to five-year repayment plan. Once the term is up, any remaining debt will be discharged.
Find a Bankruptcy Attorney in Beaumont
The Maida Law Firm, P.C. has been strongly grounded in Texas for over 90 years and has assisted countless individuals and small businesses in finding financial relief through the bankruptcy process. The firm's team members maintain an updated and thorough understanding of all federal bankruptcy laws and can guide you through the complicated process of filing.
Contact the Houston and Beaumont bankruptcy firm today to learn what our attorney can do for you.