Can I Still File Bankruptcy Under The New Laws?
Our firm can advise you about new Houston bankruptcy laws
A new bankruptcy law known as the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) was enacted in 2005.
The new federal law makes bankruptcy laws in Houston more complex, and makes it more difficult for some people to file bankruptcy. Those with higher incomes will no longer be allowed to use Chapter 7 bankruptcy, but will have to repay at least some of their debt under a Chapter 13 bankruptcy filing. Also, the new law requires all debtors to receive credit counseling before they file for bankruptcy, as well as budget and debt management counseling before the bankruptcy is completed and their debts are eliminated.
Get it Right The Fuerst Time
Your eligibility for Chapter 7 bankruptcy
To see if you qualify for Chapter 7 bankruptcy under the new Houston bankruptcy laws, compare your current monthly income to the median income for a Texas household of your size. If your income is less than or equal to the median, you are allowed to file for Chapter 7 bankruptcy. If your income is more than the median, you must pass the means test to file for Chapter 7.
The Means Test
The means test calculates whether your disposable income is sufficient to allow you to make payments on a Chapter 13 bankruptcy repayment plan. Using these calculations, you subtract certain allowed expenses and required debt payments from your current monthly income. If the remaining income is below a certain amount, you can file for Chapter 7 bankruptcy. If it is above that level, you can file Chapter 13 and repay more of the debt under a structured repayment plan. Our Houston bankruptcy law firm can help you determine whether you qualify for Chapter 7 or Chapter 13.
Counseling Requirements
Before filing bankruptcy under the new Chapter 7 and Chapter 13 rules, you must complete credit counseling with an agency approved by the United States Trustee's office. The counseling will help you determine whether you need to file for bankruptcy or whether an informal repayment plan would be enough to solve your financial problems.
Get the legal assistance you need
The assistance of a qualified Houston bankruptcy law firm can help you achieve the most efficient debt resolution plan for your unique case. The Law Offices of Jack N. Fuerst, P.C. have extensive experience representing consumers and businesses facing bankruptcy. We provide professional, approachable representation for all of our clients. Contact us at 1-866-641-0123 or through our convenient online form to talk about your situation.
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