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HOW OFTEN CAN I FILE BANKRUPTCY?
Anyone who has received a Chapter 7 discharge cannot file another Chapter 7 for 6 yrs. However, you may convert to a Chapter 7 if you are currently in a Chapter 13.
WHERE IS MY BANKRUPTCY FILED?
In the office of the clerk of the United States Bankruptcy Court district where you have lived or maintained your principal place of business for a majority of the past 180 days.
The bankruptcy court is associated with the United States District Court.
DO A HUSBAND AND A WIFE HAVE TO FILE TOGETHER?
A husband and wife should file together when they both owe some of the debts. If only the husband files, creditors may force the wife into paying them, even if she is
unemployed.
WHEN SHOULD I FILE BANKRUPTCY?
That depends on you and your particular situation. You may choose to wait to file bankruptcy if you are likely to incur sizable new debts in the near future. For example, if
you are in bad health and have huge medical bills, you may choose to wait until the illness is cured. It will do you little good to discharge $10,000 in medical bills now and then incur another $10,000 in the
next few months. You may choose to wait a few months and discharge all of them.
Also, under bankruptcy law all nonexempt property that becomes yours through inheritance or divorce within 6 months after the date that you file must be turned over to the trustee.
So, if you anticipate acquiring any money or property, you may choose to wait to file.
HOW DOES FILING BANKRUPTCY AFFECT LAWSUITS AND ATTACHMENTS THAT HAVE ALREADY BEEN FILED AGAINST ME?
Filing bankruptcy will automatically stop most lawsuits and attachments against you. Your creditors must stop all actions against you immediately after a bankruptcy is filed.
The only cases not affected are criminal cases and those to collect debts for alimony, maintenance or child support.
WHEN WILL I GO TO COURT AND WHAT WILL I DO THERE?
You are required to appear in court one time for what is called the first meeting of creditors. This will be about 30 days after your case is filed. The trustee will ask you
questions concerning your bankruptcy papers and assets. Few, if any, of your creditors will appear.
WHAT IS A TRUSTEE IN BANKRUPTCY?
The trustee is an officer of the court, usually a practicing attorney, appointed by the bankruptcy court. His primary duty is to gather your nonexempt property, turn it into cash,
and pay this money to the proper creditors. You are required by law to cooperate with the trustee. If you refuse to do so your discharge may not be granted.
WHAT HAPPENS IF MY CASE CONTAINS NON- EXEMPT ASSETS?
If your case involves assets, the trustee will immediately begin to collect all of your non- exempt property. Your creditors may file claims to be approved by the court.
WHAT ARE EXEMPT ASSETS?
Both the federal government and the state of Texas have passed laws defining what assets are exempt. Generally, the statutes are:
State of Texas
Homestead, subject to purchase money or improvement liens thereon, consisting of a lot or lots not exceeding ten acres if located in town.
Personal property having a value of not in excess of $30,000 for a single person or $60,000 for a family comprised of the following items:
- Household furnishings
- Tools of the trade
- Clothing
- Two firearms and sporting equipment
- A passenger car or light truck for each licensed driver in the household
- Cash surrender value of life insurance policies
- Current wages
- Household pets and certain livestock
Federal
- (Double the amount for a married couple)
- $16,150 in value in real or personal property used as a residence
- Up to $2575 in any one motor vehicle
- Up to $425 in value in any particular item of household furnishings or wearing apparel up to a total of $8625
- Up to $1075 in jewelry held for personal use
- Up to $1625 in the tools of trade
- Any unmatured life insurance contract on the debtor
- The right to receive certain support and disability payments
- Any property selected by debtor in an amount not exceeding $400 plus any unused amount of the $16150 listed in (1) above up to $8075 include income tax refunds.
You cannot use both exemption statutes. Generally the use of the Federal statute is the most advantageous. In some cases, however, the Texas statues are the most beneficial.
WHAT WILL HAPPEN IF THERE IS NO MONEY OR PROPERTY TO TURN OVER TO THE TRUSTEE?
If you have no money or property of a value over the exemption allowed by law, your case will be considered a "no asset" case. It will probably be closed shortly after the discharge hearing.
WHAT IS A DISCHARGE IN BANKRUPTCY?
It is the court order stating that you do not have to pay your dischargeable debts.
WHAT DEBTS ARE NOT DISCHARGED IN BANKRUPTCY?
Debts that are not discharged include:
- Most taxes.
- If the bankruptcy court so rules, debts for obtaining money, property, services or an extension, renewal or refinancing of credit by means of false pretenses, fraud or a false financial statement used with
intent to deceive.
- Debts not listed on your bankruptcy papers; unless the creditor had actual knowledge of the case in time to file a claim.
- If the bankruptcy court so rules, debts for fraud, embezzlement, or larceny.
- Debts for alimony, maintenance or support.
- If the bankruptcy court so rules, debts for intentional injury.
- Debts for certain fines and penalties payable to government units.
- Debts for student loans unless not discharging the debts would impose an undue hardship on the debtor.
- Debts involving drunk driving accidents.
HOW DOES FILING BANKRUPTCY AFFECT MY CREDIT RATING?
The fact that you have filed bankruptcy will remain in your credit file for 10 years.
WILL NEWS OF MY BANKRUPTCY BE PUBLISHED?
Your bankruptcy papers become public records and may be published by some credit reporting agencies. Newspapers do not report consumer bankruptcy unless it is of a public person.
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