Best Bankruptcy & Debt Lawyers in Houston

About Bankruptcy & Debt Law in Houston, United States

Bankruptcy and debt law in Houston, United States, is designed to help individuals and businesses that are overwhelmed by financial obligations. This area of law provides pathways for debt relief and allows honest debtors to discharge or reorganize their debts. In Houston, bankruptcy cases are typically filed in the Southern District of Texas, and the types of bankruptcy commonly filed include Chapter 7 (liquidation), Chapter 11 (reorganization), and Chapter 13 (wage earner's plan).

Why You May Need a Lawyer

People may require legal help in bankruptcy and debt-related issues for various reasons, including:

• Overwhelming personal or business debt: When debts become unmanageable and creditors are aggressive.
• Foreclosure: To halt the foreclosure process and keep the home.
• Wage garnishment: To prevent an employer from withholding a portion of wages to satisfy a debt.
• Repossession: When facing the threat of property repossession.
• Utility disconnection: To prevent utilities from being disconnected for non-payment.
• Debt collection lawsuits: When being sued by creditors or collection agencies.
• Understanding local laws: To accurately navigate the complexities of both state and federal bankruptcy laws.
• Creating repayment plans: To organize feasible repayment plans under Chapter 13.
• Protecting assets: Legal strategies to safeguard personal and business assets during bankruptcy proceedings.

Local Laws Overview

Several key aspects of local laws are particularly relevant to bankruptcy and debt in Houston:

• Exemptions: Texas has generous homestead exemptions, allowing homeowners to protect their primary residence from creditors under certain conditions.
• Wage Garnishment: Texas limits the amount that can be garnished from wages, with certain types of income being completely exempt from garnishment.
• Community Property: Texas is a community property state, meaning that both spouses may be held liable for debts incurred during marriage.
• Debt Collection Laws: Texas laws offer protections against unfair debt collection practices, in addition to federal laws like the Fair Debt Collection Practices Act (FDCPA).
• Bankruptcy Proceedings: Bankruptcy cases in Houston are handled by the United States Bankruptcy Court for the Southern District of Texas, which has specific local rules and procedures.

Frequently Asked Questions

1. What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, also known as liquidation bankruptcy, allows individuals to discharge most unsecured debts, such as credit card debt and medical bills. Non-exempt assets may be sold to pay creditors.

2. What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy allows individuals with regular income to create a repayment plan to pay off debts over three to five years, potentially saving homes from foreclosure.

3. Can all debts be discharged in bankruptcy?

No, certain debts such as student loans, child support, alimony, and most tax debts are generally not dischargeable.

4. How does filing for bankruptcy affect my credit score?

Filing for bankruptcy can have a significant negative impact on your credit score, and it can remain on your credit report for up to 10 years.

5. What assets can I keep after filing for bankruptcy in Texas?

Texas exemptions include homestead, certain personal property, retirement accounts, and other specific assets. Consult with a lawyer to understand which assets are protected.

6. How often can I file for bankruptcy?

You can file for Chapter 7 bankruptcy once every eight years and for Chapter 13 bankruptcy every two years, though other rules and waiting periods may apply based on specific circumstances.

7. Do I have to go to court if I file for bankruptcy?

Yes, you will need to attend a meeting of creditors (also known as a 341 meeting), and potentially other court hearings, but most of the process is handled by your attorney.

8. Can bankruptcy stop foreclosure?

Yes, filing for bankruptcy can temporarily stop foreclosure proceedings through an automatic stay, providing time to catch up on mortgage payments or arrange repayment plans.

9. Is there a difference between federal and Texas state bankruptcy laws?

Bankruptcy laws are primarily federal, but Texas state laws provide important exemptions and other protections that interact with federal laws.

10. How much does it cost to file for bankruptcy?

There are court filing fees, and attorney fees vary based on complexity and type of bankruptcy. The cost should be discussed with your lawyer during the initial consultation.

Additional Resources

For additional assistance, consider reaching out to the following resources:

• United States Bankruptcy Court for the Southern District of Texas: Provides detailed information on local bankruptcy procedures and forms.
• Texas Attorney General’s Office: Offers consumer protection advice and resources for Texans dealing with debt.
• Houston Bar Association: Can help you find qualified bankruptcy attorneys in the Houston area.
• Credit Counseling Services: Accredited agencies can provide mandatory pre-bankruptcy credit counseling and post-bankruptcy education courses.

Next Steps

If you need legal assistance with bankruptcy and debt issues:

1. Evaluate your financial situation to determine if bankruptcy is a viable option.
2. Gather all relevant financial documents, including debts, assets, income, and expenses.
3. Contact a qualified bankruptcy attorney in Houston to discuss your case and legal options.
4. Attend a consultation to determine the best course of action, whether it’s filing for bankruptcy or exploring alternative debt solutions.
5. Follow your attorney's advice and complete all required steps, such as credit counseling, filing paperwork, and attending court hearings.

By understanding your options and seeking professional legal advice, you can make informed decisions to manage your debt and move towards financial stability.