Bankruptcy Laws in Houston
For many individuals and businesses facing financial problems and harassment from creditors and collection agencies, declaring bankruptcy may be the best option to find a fresh start. If you are considering filing for bankruptcy, an experienced attorney can advise you on your options and guide you through each phase of this process.
At The Law Office of Russell Van Beustring, P.C., we represent clients in all aspects of bankruptcy. Firm principal Russell Van Beustring is one of the premier bankruptcy attorneys in the Houston area. He has been certified as a specialist in Consumer Bankruptcy Law by the Texas Board of Legal Specialization, and frequently appears on local network affiliates to discuss the latest legal and financial trends.
We help individuals and businesses file for:
- Chapter 7 Bankruptcy
Chapter 7 is the most common type of bankruptcy for individuals who are facing growing unsecured debt, such as credit card debt. In a Chapter 7 bankruptcy, individuals and businesses must sell all their non-exempt assets in order to pay debts. Any debt left unpaid after such a sale will generally by discharged. Most businesses who file for Chapter 7 must discontinue operations.
- Chapter 11 Bankruptcy
Chapter 11 is used primarily by businesses that could feasibly continue operations, but not without reorganizing their finances. Once creditors and debtors agree to a repayment plan, the plan is binding on both parties.
- Chapter 13 Bankruptcy
Chapter 13 is primarily for individual debtors with incomes who cannot keep up with mounting debts. These debtors file a repayment plan to help them reorganize their scheduled payments over time. Once the plan is approved by the bankruptcy court it becomes binding on both debtors and creditors, including any debt discharges.
Choosing which type of bankruptcy to file can be complicated; it is best to explore your options with a qualified attorney.
Non-Dischargeable Debts
Certain debts are protected by law and public policy, and cannot be discharged even in bankruptcy. Debts which cannot be discharged include child support payments, alimony, guaranteed student loans, and certain IRS obligations. Debts incurred from fraud, purposeful injury to others, and criminal restitution may also be non-dischargeable.
Exemptions
Debtors who file for bankruptcy are entitled to certain exemptions, meaning that they are allowed to keep a certain amount of property despite bankruptcy proceedings. Bankruptcy is governed by both state and federal laws, and therefore debtors are required to choose whether to have federal or state laws apply to them. An experienced bankruptcy attorney can help you choose the law that will allow you to retain the greatest number of assets.
Texas has some of the most generous bankruptcy exemption laws in the country. In the city, a debtor can retain a home of up to ten acres, and the value of any improvements on those ten acres is not taken into consideration. In the country, a debtor can keep a home that is up to 100 acres, and a married couple may keep 200 acres. Debtors are also entitled to exemptions of up to $60,000 of equity in personal property, excluding cash. This includes automobiles, furniture, and even retirement plans and IRAs.
Federal bankruptcy laws are in some ways more limited than state laws. For example, a married couple can only keep a home worth up to $40,000, one car each worth up to $3,225 apiece, and limited furniture. However, for someone who does not own a home or whose property is of little value, federal laws may be preferable than Texas laws. Under federal bankruptcy rules, a single debtor may retain $10,000, and a married couple $20,000, of almost any type of asset that is not otherwise exempt. Assets include cash, IRS refunds, bank accounts, or notes receivable.
To find out how we can help you or your business file for bankruptcy while retaining as much property and assets as possible, contact the Law Offices of Russell Van Beustring, P.C. today for a free consultation.
