Houston Bankruptcy Lawyers

Houston Bankruptcies Continue

Difficult Times in Houston

The recession will end eventually, but many Houston residents will not be able to hold out while property values continue to decline, more jobs are lost, more debts go unpaid.  U.S. bankruptcy filings in 2008 hit record levels with over 44,000 in Texas alone, and nearly 93% of those filed by consumers.    It is estimated that 1.4 million consumer bankruptcies will be filed in the U.S. in 2009, the surge triggered by the foreclosure crisis and economic downturn.

The Bankruptcy Process in Houston

The Federal Bankruptcy Law involves processes, procedures and evaluations which can be complex and confusing, including major revisions made in 2005.  Seek the advice of an attorney/law firm with specific long-term experience in Houston bankruptcy matters.  Check references, if possible.  A competent attorney will help you weigh your different options, make informed decisions, help you protect the security of your family and reduce your stress, while facing the realities of the situation.

Filing Chapter 7 or Chapter 13 in Houston

Chapter 7 is the “fresh start” chapter of the Bankruptcy Code and most commonly used.  This filing results in a fair distribution of your available nonexempt property to creditors.  Unsecured debts are generally discharged.  Included in this process is a “means test”, used to determine your ability to pay your creditors, verifying whether Chapter 7 is appropriate or indicating that you should be filing Chapter 13.  Median Family Income by Family Size and current poverty guidelines are factors evaluated when determining appropriate filing status for a given situation.

Some Debts May Not be Discharged in Your Houston Bankruptcy:

• Taxes owed to government agencies, such as the I.R.S., State of Texas, County, etc.
• Student loans (unless undue hardship can be proved),
• Debts incurred after the bankruptcy is filed
• Debts owed to a spouse for divorce-related obligatory expenses
• Debts not listed or scheduled or which the debtor waived discharge
• Debts for willful and malicious injury by the debtor to another person or property owned by another

Paying Debts Outside of Your Houston Bankruptcy

Certain debt payments may be considered preferential and the Houston Bankruptcy Trustee carries “avoidance power” to overturn certain transfers or obligations made by the debtor prior to or during bankruptcy. 

Examples include:

• Property transferred or paid during relevant time period before bankruptcy
• Something passed from the bankruptcy to a creditor
• Payment occurred at a time when the bankrupt consumer/business was insolvent
• One creditor is given advantage over another creditor
• Creditor suspected or should have suspected that the bankrupt consumer/business was insolvent

• If you are at risk of filing for bankruptcy or already in the process, Submit Your Case for a Free Review from a Bankruptcy Attorney in Houston, TX.

Bankruptcy Filing in Houston

Houston residents continue to suffer, as the State’s economy struggles to recover.  If you are considering filing for bankruptcy in Houston, decisions you make and actions you take now can have a positive or negative effect on the outcome of your bankruptcy proceedings.  The U.S. Bankruptcy Court warns that “Bankruptcy has long-term financial and legal consequences - hiring a competent attorney is strongly recommended.”