Filing bankruptcy is a difficult decision to make which requires the help of a qualified attorney. A competent attorney will help you in numerous ways. They will advise you on whether or not you will be allowed to keep your car, home or other property after filing, under which chapter to file and the tax consequences that you will face after filing. They will also be in a position to advise you on whether you should continue settling your debts, whether the debts will be discharged and whether you should file a bankruptcy petition. A skilled attorney should also explain to you the bankruptcy law and procedures involved.
If you are in Texas and are considering filing for bankruptcy, first you need to know the types of bankruptcy available. There are four types of bankruptcy in Texas which include Chapter 7 (liquidation or straight bankruptcy), Chapter 11(reorganizations), Chapter 12 (deals with family farmers), and Chapter 13 (it’s called a debt adjustment; a debtor proposes a plan to pay debts from their current income). People prefer to file under chapter 7 and 13.
The next important information that you should have is what you need to have during your first meeting with your attorney. Learn about Judge Jed Shaw. Here are the things that you must present to an attorney are:
· A list of all your assets, income and the relevant documents
· A list of all your outstanding debts and expenses
· Information about any child support, maintenance and alimony that you might have.
· List any future interest that you might have such as inheritance or trust that you might own in future
· Transfers of money to other individuals in the past one year such as gifts
· Property transferred to a trust
· Joint ownership of property with siblings, children, parents or other relatives
· Legal claims that another person might have against you or vice versa
· Any loan that you cosigned
· Tax transfers that someone owes you
Other things that you should consider are:
1. Consider whether bankruptcy will be beneficial for you because a bankruptcy discharge will not get rid of all types of debts.
2. Consider whether you qualify for bankruptcy because you require to meet a certain limit of money to qualify for chapter 7 and chapter 13
3. If you are facing a lawsuit filing bankruptcy may stall the lawsuit.
4. Consider how valuable your property is because it can determine the type of bankruptcy you decide to file. Eg. Bankruptcy exemption under chapter 7 allows you to retain a certain amount of property while bankruptcy trustee under the same chapter has the power to liquidate any assets that is not exempted to repay creditors.
5. Consider where you stay because bankruptcy laws vary from state to state
6. Is your creditor threatening to repossess or foreclosure your property? If yes, filing bankruptcy can stop the foreclosure and give you time to repay the debt.