If you’ve been considering filing for bankruptcy, there are a lot of things to consider, including what kind you should file for, which assets might be exempt and other important factors that could affect your case. Always consult with an attorney before making any decisions or taking further action—their expertise can often make or break your filing.
Here is an overview of the bankruptcy basics that your attorney in Montgomery County, TX can answer.
What kind should you file?
Whether you choose Chapter 7 or Chapter 13 bankruptcy will depend on the specific facts of your case. Chapter 7 bankruptcy is a “simpler” form where any non-exempt assets are sold to repay debts. Since not everyone will qualify for Chapter 7 bankruptcy, you need a skilled attorney to determine whether you do.
Do you have any exempt assets?
Depending on the jurisdiction, there is a list of assets considered exempt—meaning your creditors can’t touch them—during a bankruptcy proceeding. When you consult with an attorney, they’ll be able to tell you what the chances are for protecting your assets. If you have non-exempt assets, you’ll be able to discuss what your options are.
Will there be preferential payment issues?
Preferential payment refers to the idea that your creditors should all be paid equally when you get a source of income, instead of paying just one in full.
Will any of your payments be considered “fraudulent transfers”?
Fraudulent transfers are sales of your items or assets that are below fair market value, or if you never got the payment but spent the money anyway. Any sort of property transfer in the two years before filing for bankruptcy, whether selling your car to Grandma at a discount or having a yard sale to raise some cash, should be examined by an attorney.
What happens if there’s a 707b objection?
If you file for Chapter 7 bankruptcy, you might find yourself with a 707b objection. That’s an objection lodged by the United States Trustee, arguing that you do not qualify for Chapter 7. Ask your attorney if they’ve handled a case with a 707b objection, how it worked out and how they expect it might work in your case.
Will you have monthly payments? How long?
If you have to file for Chapter 13 bankruptcy, there will be a monthly payment plan for a fixed amount of time. Your attorney should be able to give you a general ballpark of what that figure might be and for how long, based on prior cases.
Filing for bankruptcy in Montgomery County, TX
Since 1993, James R. Jones, Attorney at Law has been litigating bankruptcy cases in Montgomery County for both state and federal courts. Our firm specializes in Chapter 7 bankruptcy cases, and is licensed to appear in state court as well as United States District and bankruptcy courts in the Southern District of Texas and the 5th Circuit United States Court of Appeals. Reach out to us today to learn more or arrange a consultation.