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Bankruptcy Laws in Texas | Chapter 7 Lawyers & 13 Attorneys
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Texas Bankruptcy Laws

 Applying for bankruptcy petition in Texas is just as difficult as it is in other states. The application process has been greatly affected since the introduction of the BAPCPA (bankruptcy Abuse Prevention and Consumer Protection Act). If one is applying for bankruptcy in Texas, one has to follow the set regulations and bankruptcy laws by the state and present their petition to the bankruptcy courts since they are the only type of courts that take on bankruptcy cases. The state of Texas follows the federal code n bankruptcy but exercises its ability to influence the proceedings of the bankruptcy procedures and application processes.

 

Texas Bankruptcy Exemptions:

Exemptions are mostly applicable under the chapter 7 laws since they involve liquidating the assets of the debtor. The state and federal exemptions differ and an attorney should be sought for maximum protection.

There are numerous chapters in the United States code that governs the bankruptcy application and judgments all documented in the 11th title of the United States of America code. The most popular chapters are chapter 7 and 13. The chapters are popular since thy mostly deal with personal debts, but there are other chapters that might be useful when businesses and corporations are involved in bankruptcy.

 

Texas Chapter 7 Bankruptcy Laws:

Chapter 7 cases deal with cases where the debtor records an income of less than the median income and is in debt. The cases are resolved by liquidating the assets of the debtor and using the proceedings to settle the creditors as long as they are non-exempted according to Chapter 7 bankruptcy laws.

 

Texas Chapter 13 Bankruptcy Laws:

Chapter13 bankruptcy laws on the other hand does not place any assets of the debtor in liquidation since the debtor is allowed an extended time that is more than 3 years to settle their debt with their creditors. If one is to file a bankruptcy case in the state of Texas, then knowing what exemptions will be applied in the case is important.

 

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