Best Bankruptcy & Debt Lawyers in Houston

About Bankruptcy & Debt Law in Houston, United States

Bankruptcy & Debt law in Houston falls under federal jurisdiction, primarily governed by the United States Bankruptcy Code. This field of law provides a legal process for individuals and businesses struggling with debt to either wipe out their debt or set up a repayment plan. Houston, as part of the Southern District of Texas, is subject to both federal bankruptcy laws and specific local rules applied by the bankruptcy courts in the district. Residents of Houston may consider filing for Chapter 7 or Chapter 13 bankruptcy, depending on their financial situation.

Why You May Need a Lawyer

Seeking the help of a lawyer experienced in Bankruptcy & Debt law can be crucial in navigating the intricate legal landscape effectively. Common situations where legal assistance may be needed include:

• Determining the most suitable type of bankruptcy to file, such as Chapter 7 or Chapter 13.
• Negotiating with creditors to possibly reduce the overall debt.
• Defending against creditor lawsuits, credit card debt issues, or wage garnishments.
• Understanding the exemptions available under Texas state law which can impact the bankruptcy process.
• Filing the extensive and complex paperwork accurately and in compliance with court deadlines.

Local Laws Overview

Although bankruptcy is governed by federal law, there are various local rules and considerations in Houston:

• Exemptions: Texas law offers some of the most generous bankruptcy exemptions, allowing individuals to protect their homestead, personal property, retirement accounts, and more from creditors.
• Means Test: Houston residents filing for Chapter 7 bankruptcy must pass a means test which compares their income to the state median. This determines eligibility for Chapter 7 bankruptcy.
• Court Procedures: Bankruptcy cases for Houston are handled in the Southern District of Texas, requiring an understanding of local court procedures and requirements.
• Debt Collection Laws: Familiarity with both federal and Texas-specific debt collection laws ensures that creditors adhere to legal boundaries.

Frequently Asked Questions

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

Chapter 7 involves liquidating non-exempt assets to pay off debts, while Chapter 13 allows individuals to keep their assets and work out a repayment plan over three to five years.

Can all types of debt be discharged in bankruptcy?

No, certain debts like student loans, child support, and tax obligations are typically not dischargeable in bankruptcy.

How can I file for bankruptcy in Houston?

Filing involves completing and submitting various forms and schedules to the Southern District of Texas bankruptcy court, along with a credit counseling certificate.

What exemptions can I use in Texas bankruptcy cases?

Texas law allows exemptions like the homestead exemption, personal property up to a certain value, retirement accounts, and certain wages, among others.

Will filing for bankruptcy stop creditors from calling?

Yes, an automatic stay is placed once bankruptcy is filed, prohibiting creditors from making collection attempts.

How long does a bankruptcy process take?

Chapter 7 bankruptcy can take about 3-6 months, whereas Chapter 13 can last 3 to 5 years due to its repayment plan nature.

Can I keep my car if I file for bankruptcy?

In many cases, yes. It depends on the equity in the car and the exemptions available under Texas law.

How is my credit affected by filing for bankruptcy?

Bankruptcy can remain on your credit report for up to 10 years for Chapter 7 and 7 years for Chapter 13, but it can also provide a fresh start and the opportunity to rebuild credit.

When should I consider bankruptcy?

Consider bankruptcy if you're unable to meet debt obligations, face ongoing creditor harassment, or risk losing essential assets.

Will I lose my home if I file for bankruptcy in Houston?

The Texas homestead exemption often protects your primary residence, allowing you to keep your home, especially in Chapter 13 bankruptcy.

Additional Resources

If you're seeking further assistance or guidance, consider reaching out to these resources:

• United States Bankruptcy Court – Southern District of Texas: For official court forms and procedural guidance.
• Texas Office of Consumer Credit Commissioner: For information on debt collection practices and consumer protection.
• Federal Trade Commission (FTC): For understanding federal laws regarding debt collection and consumer rights.
• Houston Bar Association: They may offer referral services to local attorneys specializing in Bankruptcy & Debt.

Next Steps

If you're considering legal assistance for debt and bankruptcy issues, follow these steps:

1. Consult with a qualified bankruptcy attorney in Houston to evaluate your financial situation and options.
2. Gather relevant financial documents, including income statements, debt details, and asset information, to provide to your attorney.
3. Complete the required credit counseling course from a court-approved provider.
4. Discuss with your attorney the type of bankruptcy that aligns with your financial goals and permissible exemptions.
5. File the bankruptcy petition and related documentation with the help of your attorney, ensuring adherence to local rules and deadlines.