Texas Bankruptcy Laws for People in Severe Financial Difficulties

There are many methods that you can use to clear yourself of the many debts that you have. These methods can include going to bankruptcy courts, but you will need to know what is recommend for the bankruptcy courts in your state. The Texas bankruptcy laws of 2005 require that you go through with credit counseling before you apply for bankruptcy.

The Texas bankruptcy laws have incorporated this new bankruptcy act in their laws about debtors and creditors. In this law you will have to attend a court approved credit counseling agency sessions for at least 6 months before you can receive a certificate that will let you to apply for a bankruptcy hearing.

Once you are certified from the counseling agency to begin the process of bankruptcy you should contact a bankruptcy lawyer. This person will have to give you a means test. This means test is part of the new Texas bankruptcy laws.

The means test will determine what your financial status is so that you can apply for chapter 7 or 13 of the bankruptcy code. Depending on the means test and if you have less than $6000, after monthly living expenses, rent, food, loans and medical bills, have been deducted from your income for the next 5 years then you can qualify for chapter 7.

Otherwise you must apply for chapter 13 bankruptcy from the Texas bankruptcy laws. For chapter 13 you will need to have your repayment plan with all of the repayment details stated clearly. This should be given to the court so that they can look it over.

This way the court will be able to see if you are sincere in your desire to repay your debts. Once the court is sure that you will be able to repay all or most of your debts that you have owing, you will be able to file for chapter 13 bankruptcy.

Once the bankruptcy process for both chapter 7 and 13 has begun you will need to gather the various paperwork and documents that you need. This paperwork is required by the Texas bankruptcy laws.

The documents that you should include for your bankruptcy declaration will include an itemized list of your current income sources, the major financial transactions that you have carried out for the last 2 years, and your monthly living expenses.

You will need other items to satisfy the Texas bankruptcy laws act. The secured and unsecured debts, along with any property and assets that aren’t exempt for the Texas bankruptcy laws must be handed with the title deeds.

Once this information has been handed over to your bankruptcy lawyer you can file for bankruptcy. The Texas judicial courts will issue an automatic stay order against your creditors. This will allow you to pay these individuals over a court defined period of time.

The Texas bankruptcy laws are designed to help people in severe financial difficulties. This aid will allow you settle your debts and have a fresh start.