Best Bankruptcy Lawyers in Houston

About Bankruptcy Law in Houston, United States

Bankruptcy is a legal process designed to help individuals and businesses who are unable to repay their debts. In Houston, Texas, bankruptcy provides a structured way for people to address unmanageable debt while protecting certain assets and getting relief from creditor actions. Federal bankruptcy laws apply throughout the United States, but local courts and procedures in Houston mean that the process can have some unique features for residents of the city and surrounding Harris County area.

By filing for bankruptcy, individuals may be able to discharge certain debts completely or reorganize their payment obligations, giving them a fresh financial start and stopping actions like wage garnishments or home foreclosures.

Why You May Need a Lawyer

Bankruptcy law can be complex and confusing, especially for those unfamiliar with legal processes. Here are common situations where legal advice is often valuable:

• You are overwhelmed with credit card, medical, or personal loan debt.
• Creditors are suing you, garnishing your wages, or threatening foreclosure or repossession.
• You want to protect your home, vehicle, or other important assets from being seized.
• You are self-employed or own a business facing insolvency.
• You are unsure which type of bankruptcy - such as Chapter 7 or Chapter 13 - is most appropriate for your situation.
• You have recently experienced a job loss, divorce, or major financial setback.
• You need help understanding which debts can be discharged and which cannot.
• You want peace of mind knowing all required paperwork and court filings are handled correctly.

Local Laws Overview

Bankruptcy cases in Houston are processed through the United States Bankruptcy Court for the Southern District of Texas. While bankruptcy rules are largely governed by the federal Bankruptcy Code, several local aspects are particularly relevant:

• Texas Exemptions: Texas has generous exemption laws allowing filers to keep their homestead, personal property, retirement accounts, and some vehicles, depending on value and circumstances.
• Local Procedures: Debtors must attend a meeting of creditors, known as a 341 meeting, which usually takes place in downtown Houston.
• Credit Counseling Requirement: Anyone filing for bankruptcy must undergo approved credit counseling before filing and complete a financial management course before debts are discharged.
• Chapter Choices: Most individuals file Chapter 7 (liquidation) or Chapter 13 (reorganization). Each has different eligibility requirements and outcomes.
• Judicial District: Houston area cases are assigned to specific bankruptcy judges and courtrooms within the Southern District.

Frequently Asked Questions

What types of bankruptcy are available to individuals in Houston?

Most individuals file under Chapter 7, which can eliminate many unsecured debts, or Chapter 13, which sets up a payment plan over three to five years to repay eligible debts.

Will filing for bankruptcy stop harassing calls from creditors?

Yes, filing initiates an automatic stay, which legally requires creditors to stop most collection activities, including calls, lawsuits, and wage garnishments.

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

Texas law allows many debtors to keep their primary residence and certain personal vehicles if they meet exemption requirements and remain current on payments.

How does bankruptcy affect my credit score?

Bankruptcy will negatively impact your credit score, and the filing will remain on your credit report for up to 10 years for Chapter 7 or up to 7 years for Chapter 13. However, it can also help you rebuild credit once discharged from insurmountable debts.

Are all debts dischargeable through bankruptcy?

Certain debts, such as student loans (except in cases of undue hardship), recent tax debts, child support, and alimony, are typically not dischargeable through bankruptcy.

How much does it cost to file for bankruptcy in Houston?

There are court filing fees - typically a few hundred dollars depending on the chapter you file - as well as attorney's fees, which vary based on the complexity of your case.

Can bankruptcy stop foreclosure on my house?

Filing for bankruptcy often temporarily halts foreclosure proceedings. Chapter 13 can allow overdue payments to be included in a repayment plan, potentially saving your home.

How long does the bankruptcy process take?

A Chapter 7 case usually takes three to six months from start to finish. Chapter 13 repayment plans last three to five years.

Will I have to go to court if I file for bankruptcy?

Most filers do not appear before a judge but must attend a meeting of creditors in Houston, where creditors or the trustee may ask questions about your finances.

Do I need an attorney to file for bankruptcy?

While it is possible to file without an attorney (pro se), having a qualified bankruptcy lawyer in Houston is strongly recommended to avoid costly errors and ensure your rights and assets are properly protected.

Additional Resources

Here are helpful resources and organizations for bankruptcy assistance in Houston:

• United States Bankruptcy Court - Southern District of Texas: The local federal court where bankruptcy cases are filed and processed.
• Texas State Law Library: Offers legal information and resources for those navigating bankruptcy in Texas.
• Houston Bar Association: Provides lawyer referral services and community legal clinics.
• Lone Star Legal Aid: Provides free or low-cost legal services to qualifying individuals facing bankruptcy.
• National Foundation for Credit Counseling: Offers approved credit counseling and debtor education services.

Next Steps

If you are considering bankruptcy or just want to explore your options, these steps can help guide your process:

• Gather all information about your debts, assets, income, and expenses.
• Schedule a consultation with a Houston-based bankruptcy attorney to discuss your situation and potential options.
• Complete the required credit counseling session from an approved provider before filing.
• Work with your attorney to file the necessary legal documents with the court.
• Attend the mandatory meeting of creditors and complete the debtor education course.
• Stay informed about your case status and follow your attorney's guidance for the best possible outcome.

Taking these steps can help you regain control of your finances and move toward a brighter financial future. Legal professionals in Houston can provide tailored advice to ensure your rights are protected throughout the bankruptcy process.