Best Bankruptcy Lawyers in Houston

About Bankruptcy Law in Houston, United States:

Bankruptcy is a legal process that allows individuals and businesses to eliminate or repay their debts under the protection of the court. In Houston, United States, bankruptcy laws are regulated by federal law as well as local laws specific to the state of Texas. Bankruptcy provides individuals and businesses with the opportunity to make a fresh financial start by managing or discharging their debts.

Why You May Need a Lawyer:

While it is possible to file for bankruptcy on your own, hiring a lawyer specializing in bankruptcy law can greatly benefit you. Here are some common situations where legal help is often necessary:

• If you are unsure about which type of bankruptcy to file (Chapter 7, Chapter 13, etc.)
• If you have a complex financial situation involving multiple debts and assets
• If you are facing foreclosure or repossession
• If your creditors are harassing you for payment
• If you are struggling to navigate the intricate paperwork and legal processes associated with bankruptcy

Local Laws Overview:

In Houston, United States, bankruptcy proceedings are governed by both federal and state laws. Some key aspects of local laws that are particularly relevant to bankruptcy in Houston include:

• Exemptions: Texas law provides specific exemptions that determine which assets you can keep when filing for bankruptcy. These exemptions include your primary residence, certain personal property, and wages.
• Means Test: To file for Chapter 7 bankruptcy, you must pass a means test. This test compares your income to the state median income to determine your eligibility.
• Homestead Exemption: Texas has a generous homestead exemption that allows you to protect your primary residence from creditors during bankruptcy.

Frequently Asked Questions:

1. Can bankruptcy help eliminate all my debts?

Bankruptcy can eliminate many types of unsecured debts, such as credit card debt and medical bills. However, certain obligations, such as student loans, child support, and tax debts, may not be dischargeable.

2. Will bankruptcy stop foreclosure on my home?

Filing for bankruptcy can temporarily halt foreclosure proceedings through an automatic stay. However, whether you can keep your home will depend on several factors, including the type of bankruptcy you file and your ability to make mortgage payments.

3. How long does bankruptcy stay on my credit report?

Bankruptcy can remain on your credit report for several years. A Chapter 7 bankruptcy can stay on your report for up to 10 years, while a Chapter 13 bankruptcy can stay for up to 7 years. However, you can begin rebuilding your credit immediately after bankruptcy.

4. Can I keep any credit cards after filing for bankruptcy?

It is possible to keep certain credit cards after filing for bankruptcy, especially if they have a zero balance. However, any credit cards with outstanding balances are typically included in the bankruptcy proceedings.

5. Will I lose all my possessions in bankruptcy?

No, bankruptcy laws allow you to keep certain personal property and assets. Texas exemptions specifically protect items such as your primary residence, a vehicle, home furnishings, clothing, and tools of your trade. The exemptions vary depending on the type of bankruptcy you file and the value of the assets.

Additional Resources:

• United States Bankruptcy Court - Southern District of Texas: Visit their website at https://www.txs.uscourts.gov/ for information on bankruptcy procedures, court forms, and local rules.
• Texas State Bar: Visit their website at https://www.texasbar.com/ for a directory of bankruptcy attorneys in Houston and other helpful resources.

Next Steps:

If you need legal assistance in bankruptcy, here are some recommended steps to take:

1. Evaluate your financial situation and determine if bankruptcy is the right option for you.
2. Research and select an experienced bankruptcy lawyer in Houston.
3. Schedule a consultation with the lawyer to discuss your case, understand the fees involved, and get advice on the best course of action.
4. Gather all necessary financial documents and paperwork as advised by your lawyer.
5. Begin the bankruptcy filing process with the assistance of your lawyer.