Best Bankruptcy Lawyers in Austin

About Bankruptcy Law in Austin, United States

Bankruptcy is a legal process that provides individuals and businesses with a fresh start financially by eliminating or reorganizing their debts. In Austin, United States, bankruptcy is governed by federal law, specifically the United States Bankruptcy Code. It allows individuals and businesses to either liquidate their assets to repay their debts or create a repayment plan approved by the court. Bankruptcy provides relief to those who are struggling with overwhelming financial burdens and offers a chance to rebuild their financial lives.

Why You May Need a Lawyer

While it is possible to file for bankruptcy without legal representation, hiring a bankruptcy lawyer can greatly benefit you. Here are a few common situations where legal assistance can be invaluable:

• If you are uncertain about which bankruptcy chapter to file under – Chapter 7 or Chapter 13.
• If your income is above the median income for the area, and you need help passing the means test.
• If you have valuable assets or property that you want to protect during bankruptcy.
• If you are facing foreclosure or repossession.
• If you have complex legal or financial issues that need to be resolved in your bankruptcy case.

Local Laws Overview

In Austin, United States, bankruptcy cases are filed in the United States Bankruptcy Court for the Western District of Texas. It is important to understand some key aspects of local laws that are particularly relevant to bankruptcy:

• Texas bankruptcy exemptions: Texas allows residents to choose between state and federal bankruptcy exemptions. These exemptions specify the property and assets that are protected from liquidation during bankruptcy.
• Means test considerations: The means test determines whether you qualify for Chapter 7 bankruptcy or should file under Chapter 13. Median income levels in Austin and the number of dependents in your household are factors that impact the means test calculation.
• Foreclosure laws: Understanding local foreclosure laws is crucial for homeowners who are at risk of losing their homes. Certain options like filing for bankruptcy can help in stopping or delaying foreclosure proceedings.

Frequently Asked Questions

Q: How long does bankruptcy stay on my credit report?

A: A Chapter 7 bankruptcy can stay on your credit report for up to 10 years, while a Chapter 13 bankruptcy is typically listed for up to 7 years. However, this does not mean it will severely impact your credit for the entire duration. It is possible to rebuild your credit over time.

Q: Can I keep my home and car if I file for bankruptcy?

A: It depends on your specific circumstances. In many cases, you can keep your home and car as long as you continue making timely payments and reaffirm the debts in your bankruptcy filing. Consulting with a bankruptcy attorney can help you explore your options.

Q: Will all my debts be discharged in bankruptcy?

A: While bankruptcy can discharge many types of debts, certain obligations may not be eliminated. Examples include child support, alimony, certain tax debts, student loans (in most cases), and debts incurred through fraud or illegal activities. Your attorney can provide more information based on your situation.

Q: Can I file for bankruptcy more than once?

A: Yes, it is possible to file for bankruptcy more than once; however, there are time limits between filings. For example, if you previously filed for Chapter 7 bankruptcy, you must wait eight years before filing another Chapter 7 case. Your attorney can guide you on the eligibility requirements for subsequent filings.

Q: Will I lose all my possessions if I file for bankruptcy?

A: No, bankruptcy exemptions protect certain property from being liquidated during the bankruptcy process. These exemptions vary based on federal and state laws. In many cases, individuals can retain necessary possessions such as clothing, household items, and vehicles up to a certain value.

Additional Resources

If you need further information or assistance regarding bankruptcy in Austin, United States, consider the following resources:

• United States Bankruptcy Court for the Western District of Texas: https://www.txwb.uscourts.gov/
• State Bar of Texas Bankruptcy Section: https://www.texasbar.com/AM/Template.cfm?Section=Bankruptcy2&Template=/CM/HTMLDisplay.cfm&ContentID=36625
• Legal Aid Society of Central Texas: https://www.lscat.org/

Next Steps

If you find yourself in a situation where you need legal assistance with bankruptcy in Austin, United States, follow these steps:

1. Evaluate your financial situation and determine whether bankruptcy is the right option for you.
2. Research and consult with reputable bankruptcy attorneys in Austin who specialize in bankruptcy law.
3. During consultations, discuss your specific circumstances, fees, and the support the attorney can provide.
4. Choose an attorney who understands your needs and has a track record of success in bankruptcy cases.
5. Collaborate with your chosen attorney to gather all necessary documents and information required for your bankruptcy filing.
6. File your bankruptcy petition with the United States Bankruptcy Court for the Western District of Texas and follow the court's instructions throughout the process.
7. Work closely with your bankruptcy attorney to navigate the legal proceedings, attend required meetings, and follow any additional requirements.
8. Comply with the court's orders and complete any necessary financial management courses as mandated by the bankruptcy law.
9. Take proactive steps to rebuild your financial life after bankruptcy, such as improving your credit score and managing your finances responsibly.