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Posts tagged "means test"

Understanding means tests in bankruptcy

A Texas bankruptcy case does not begin until a petition is filed, and it is important to complete some preliminary steps before filing. Chapter 7 is ideal for liquidation purposes, allowing many unsecured debts to be discharged. However, this is reserved for those who are in a financial state that requires legal action when pursuing a fresh start. Those with sufficient means are not eligible for Chapter 7, and eligibility is determined through means testing.

Bankruptcy and a Fresh Start for the New Year

Bankruptcy may be the answer you have been looking for in 2011.  If you are overwhelmed by credit card debt, unsecured lines of credit, medical bills, or are facing repossession of your vehicle or foreclosure of your home then it is definitely time to find out what your options are at the beginning of 2012.  Most of the time, when you get the debt relief that you have long needed you are able to find that many areas of your life improve. 

Dallas Bankruptcy Attorneys

Finding the right bankruptcy attorney to file your case is an important process.  You have to feel comfortable with your lawyer because it is critical that you make full disclosure of all of your assets, liabilities and financial transactions over the past few years in order for your representative to best assist you. 

Bankruptcy Court in Plano, Texas

The Bankruptcy Court for the United States District Court Eastern Division on Texas sits in Plano, Texas.  The Court is actually located in the Wells Fargo Bank Building that is on the east side of North Central Expressway and Plano Parkway.  Adversarial proceedings and contested hearings in either Chapter 7 or Chapter 13 cases are heard there in front of the judge.

Chapter 13 Plan

Chapter 13 Bankruptcy is a great option for people that are in financial despair.  If you have credit card debt, then filing a Chapter 13 will typically allow you to discharge all of that debt just as if you were filing for protection under Chapter 7. Also, if you have IRS debt then you can typically pay that back at zero percent interest over a five year time period through the Plan.

Divorce and Bankruptcy

Divorce and Bankruptcy Law are two areas that sometimes go hand in hand.  Financial difficulties in a relationship can be as difficult of a storm to weather as an extra-marital affair.  When a couple has money problems, they may think that the only answer is to get out of the relationship.

Credit Card Lawsuits

Often times, when a credit card company is not paid in a timely fashion they send the debt over to a debt collection company to try to resolve the issue.  When the debt collection company fails, many times they send the debt along to a plaintiff's attorney who ultimately files a lawsuit against the card holder.  The card holder often has a difficult time raising an effective defense in state court to the lawsuit.

Bankruptcy and 401(k) Loans

Many times, as clients reach the point of filing either a Chapter 7 or Chapter 13 bankruptcy, they have already exhausted all other sources of cash, such as cashing out or borrowing against retirement plans.  As many clients cash out their 401(k) accounts, they could be creating negative tax consequences.  

Bankruptcy and Divorce

"Love and Marriage...Love and Marriage..." the song says, "you can't have one without the other."  Well, sometimes Bankruptcy and Divorce go hand in hand as well.  Often times, if the couple is able to get along well enough through the bankruptcy proceedings before the divorce is finalized it is much better for the man, wife, future partners, and/or children going forward in the future.  

Chapter 7 Bankruptcy in Collin County

Many people have had to turn to relief under the Bankruptcy Code in Collin County, Texas.  Chapter 7 Bankruptcy is often the chapter of bankruptcy that many debtors choose if they pass the Means Test.  Chapter 7 is often the most appropriate chapter if the debtor is current on the homestead, current on the cars, and has unsecured debt that is unaffordable.

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