The Easiest Way to Pass the “Means Test” Most people who want to file a Chapter 7 “straight bankruptcy” can do so. Most pass the qualifying “means test” because their income is low enough. If you live in Texas, the next few paragraphs will give you a very good idea if your income qualifies you. Start by Defining Two Terms The “Means Test”: an … [Read more...]
Is My Income Low Enough to Pass the “Means Test” and Be Able to File a Chapter 7 Case in Texas?
October 15, 2013 by Leave a Comment
Saving Your Home through Five Powerful Tools of Chapter 13
October 1, 2013 by Leave a Comment
Chapter 13 is known as the home-saver. It provides a set of tools, each of which solves a different problem. It gives you a powerful combination. Here are five of those tools: Catch up on your mortgage arrearage, flexibly and while protected. You have the length of your Chapter 13 plan–as long as 5 years—to pay your mortgage back … [Read more...]
Getting Your “Debtor Education” Before Completing Your Bankruptcy Case
September 11, 2013 by Leave a Comment
During the 180 days before filing bankruptcy, you must go through an easy “credit counseling” course to be able to file your case. Then after filing bankruptcy, you must also complete “an instructional course concerning personal financial management” before you can get a discharge (legal write-off) of your debts. This second step is usually … [Read more...]
Paying for Your Bankruptcy Lawyer
August 27, 2013 by Leave a Comment
Although nobody would consider doing surgery on themselves or treating their own heart attack, some people think that they can treat their financial trauma on their own. Doing so is extremely unwise. You may agree with that but then wonder how to pay for a bankruptcy lawyer if you can’t afford to pay your creditors. To help answer this, consider … [Read more...]
The Benefits of Chapter 12 For Texas Farmers and Ranchers
August 12, 2013 by Leave a Comment
You hear a lot about Chapter 7 “straight bankruptcy,” Chapter 11 “business reorganization,” and Chapter 13 “adjustment of debts of an individual.” But probably much less familiar to you is Chapter 12 “adjustment of debts of a family farmer or fisherman.” However, if you qualify for it, Chapter 12 provides some of the best benefits of all these … [Read more...]
How Come in a Federal Bankruptcy We Can Protect Our Property with STATE Exemptions?
July 25, 2013 by Leave a Comment
The U.S. Constitution makes bankruptcy a federal procedure. So how come it’s different in every state, including Texas, because of the property you can protect? The Constitution makes it sound like a bankruptcy case should be the same in every state. It says that Congress has the power “to establish… uniform Laws on the subject of Bankruptcies … [Read more...]
The Special Texas Homestead Exemption in Bankruptcy
July 9, 2013 by Leave a Comment
Texas has a very different and very generous homestead exemption compared to most other states. Most homestead exemptions—in other states and in federal law—impose a specific dollar limit on the how much value in a home you can protect. There no such limit in Texas. Our homestead exemption does have some other kinds of limits and conditions, but … [Read more...]
The Truth about Bankruptcy Petition Preparers
June 26, 2013 by Leave a Comment
A “bankruptcy petition preparer” under bankruptcy law (Section 110(a)(1) of the Bankruptcy Code) is someone who gets paid for preparing documents that are filed in a bankruptcy case, but is “not an attorney for the debtor” nor “an employee of such attorney under the direct supervision of such attorney.” There are two basic reasons why a person … [Read more...]
What is “Conversion” from Chapter 13 to Chapter 7?
June 19, 2013 by Leave a Comment
Following up on my last blog, “conversion” means switching from one chapter of bankruptcy to another before the case is completed. In the last blog I discussed converting from Chapter 7 to 13; now about converting from Chapter 13 to 7, that is, from the “adjustment of debts” payment plan to a “straight bankruptcy.” The reasons to convert from … [Read more...]
What is “Conversion” from Chapter 7 to Chapter 13?
May 24, 2013 by Leave a Comment
“Conversion” is switching from one bankruptcy chapter to another before the bankruptcy case is completed. Focusing here on “converting” from Chapter 7 to 13, why would you want to make this switch between these very different options? You would do so essentially, either voluntarily and involuntarily. Either because 1) changed circumstances make … [Read more...]
