How to File for Bankruptcy in Texas

Posted by Lee StringhamAug 15, 20140 Comments

The state of Texas treats bankruptcy very much like most other states to, but may impose special rulings as far as what loans and assets are deemed securable in the eyes of the state. Aside from minor procedural differences, the state of Texas uses the same financial chapter laws as most other states when treating bankruptcy.

There are effectively two different types of bankruptcy that individuals may qualify for, plus an additional chapter that is exclusive to businesses. Chapter 7 bankruptcy entail a straight liquidation procedure, wherein, upon filing, your assets, property and accounts will be handed over to a bankruptcy court appointed trustee, and sold off or liquidated in order to repay your creditors. Not everything you own will be sold! In your filing of paperwork, you will be given an opportunity to list assets and accounts as secured and unsecured as a means of identifying which of your belongings is vital for your livelihood. You will usually be able to keep your home, automobile, property, clothing and furnishings and most household items. This type of bankruptcy takes anywhere between four and six months, and is a fairly invasive process that usually results in the clearance of all or most of your debts.

Chapter 13 bankruptcy, on the other hand, is a long and drawn out process of restructuring debt and making payments over a three to five year period, with little or no invasive tendencies and little change in lifestyle.

In both of these cases, as soon as you file for bankruptcy, the bankruptcy court will place an automatic stay on your assets, which prevents repossession or confiscation for the duration of the bankruptcy. This is meant to keep creditors in check, and will effectively render any harassment or threats from creditors or repossession agencies moot through legal protections.

However, none of these bankruptcy procedures are simple. Most cases will involve you filling out numerous forms, taking meticulous inventory, and attending debt management classes before you are eligible for your automatic stay. This is why most professionals recommend you hire an experienced bankruptcy attorney such as John A. Hixson, to assist you and guide you through the application process. There is so much to do, and in a bankruptcy case, time can often mean the loss of valuables and assets through repossession and confiscation, so it's best to get started immediately.

Calling a reputable bankruptcy attorney like John A. Hixson will not only put your mind at ease, but it will significantly expedite the process of applying for bankruptcy and also guide you along throughout your journey towards a debt free life. Attorney Hixson boast over two decades of professional bankruptcy experience in Texas, and has helped thousands of individuals, families and businesses escape the debt trap through expertly navigated and negotiated bankruptcy tactics. You too can once again experience a life without debt! Call today for a free, zero obligation consultation and find out what one of Arlington's most prominent attorneys – John A. Hixson – can do for you!