If you’re considering filing bankruptcy in Carrollton, TX, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

Qualifying for bankruptcy in Carrollton, Texas, or anywhere in the United States, is a complex process that depends on various factors, including your financial situation, income, and the type of bankruptcy you wish to file. Bankruptcy is a legal process designed to help individuals and businesses overwhelmed by debt find relief, but not everyone is eligible. In this guide, we’ll explain the qualifications for bankruptcy in Carrollton, TX, focusing on the most common types of consumer bankruptcies: Chapter 7 and Chapter 13.

Chapter 7 Bankruptcy:

Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” is designed for individuals or businesses with limited income and significant unsecured debts, such as credit card debt or medical bills. To qualify for Chapter 7 bankruptcy in Carrollton, TX, you must meet specific eligibility criteria, including:

1. Means Test: The means test is a crucial component of Chapter 7 eligibility. It evaluates your income and expenses to determine if you have enough disposable income to repay your debts. If your income is below the median income for your household size in Texas, you generally pass the means test automatically. However, if your income exceeds the median, you may still qualify by passing a more detailed means test that considers your expenses.

2. Credit Counseling: Before filing for Chapter 7 bankruptcy, you must complete a credit counseling course from an approved agency within 180 days of filing. This requirement aims to ensure that you explore alternatives to bankruptcy.

3. Previous Bankruptcy Discharge: If you previously received a Chapter 7 discharge, you may need to wait eight years from the date of the prior filing before you can file for Chapter 7 bankruptcy again.

4. No Recent Chapter 13 Discharge: If you have recently received a Chapter 13 discharge, you may need to wait six years from the date of the prior filing to be eligible for Chapter 7 bankruptcy.

Chapter 13 Bankruptcy:

Chapter 13 bankruptcy, often called “reorganization bankruptcy,” is designed for individuals with a regular income who want to restructure their debts and create a manageable repayment plan. To qualify for Chapter 13 bankruptcy in Carrollton, TX, you must meet the following criteria:

1. Steady Income: You must have a reliable source of income to propose and maintain a repayment plan. This plan typically spans three to five years and must cover your secured and priority debts while committing a portion of your disposable income to unsecured creditors.

2. Debt Limitations: There are debt limits for Chapter 13 bankruptcy. Your secured debts (e.g., mortgages and car loans) must be below $1,257,850, and your unsecured debts (e.g., credit card debt) must be less than $419,275. These limits are subject to change due to inflation adjustments.

3. Credit Counseling: Similar to Chapter 7, you must complete a credit counseling course before filing for Chapter 13 bankruptcy.

4. Tax Returns: You must have filed your federal and state income tax returns for the previous four years before filing for Chapter 13 bankruptcy.

It’s important to note that bankruptcy laws can change, and there may have been updates or amendments. Therefore, it’s crucial to consult with a qualified bankruptcy attorney in Carrollton, TX, to ensure that you meet the current eligibility criteria and to receive personalized guidance based on your unique financial situation.

Qualifying for bankruptcy in Carrollton, TX, involves meeting specific eligibility criteria depending on the type of bankruptcy you intend to file. Chapter 7 is for those with limited income and significant unsecured debts, while Chapter 13 is for individuals with a steady income who want to restructure their debts through a repayment plan. Consulting with an experienced bankruptcy attorney is highly recommended to navigate the intricacies of bankruptcy law and determine the best course of action for your financial circumstances.

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Do You Need a Lawyer to File For Bankruptcy in Carrollton, TX?

Whether you need a lawyer to file for bankruptcy in Carrollton, Texas, ultimately depends on your specific situation and the type of bankruptcy you’re considering. While it’s possible to file for bankruptcy pro se (without an attorney), there are several factors to consider before deciding whether to go it alone or seek legal representation.

1. Complexity of Your Case:

• Chapter 7 Bankruptcy: If your Chapter 7 case is relatively straightforward, meaning you have no significant assets, no complex legal issues, and your financial situation is simple, you may be able to navigate the process without an attorney. However, even in seemingly simple cases, a lawyer can provide valuable guidance and ensure you don’t make critical mistakes.
• Chapter 13 Bankruptcy: Chapter 13 cases tend to be more complex as they involve the creation of a repayment plan lasting three to five years. If you’re filing for Chapter 13, it’s highly advisable to hire an attorney to help you craft a feasible plan that complies with the law and addresses your unique financial circumstances.

2. Legal Expertise:

• Bankruptcy law is intricate, and it’s continually evolving. A qualified bankruptcy attorney in Carrollton, TX, has a deep understanding of the law, court procedures, and local rules. They can help you navigate the complexities, anticipate potential issues, and ensure your case is filed correctly.

3. Protection from Creditor Actions:

• When you hire an attorney, they can handle communication with your creditors, putting an end to harassing calls and collection efforts. This protection is especially valuable if you’re facing foreclosure, wage garnishment, or lawsuits.

4. Maximizing Exemptions:

• Bankruptcy law provides exemptions that allow you to keep certain property during bankruptcy. An attorney can help you understand and maximize these exemptions to protect your assets.

5. Avoiding Costly Mistakes:

• Filing for bankruptcy involves a considerable amount of paperwork and strict deadlines. Mistakes on your bankruptcy forms or missed deadlines can result in your case being dismissed or the loss of important assets. An attorney can help you avoid these costly errors.

6. Negotiating with Creditors:

• In some cases, your attorney may be able to negotiate with creditors to reduce the amount you owe or negotiate more favorable terms for your repayment plan in a Chapter 13 bankruptcy.

7. Legal Advocacy:

• If any disputes or legal challenges arise during your bankruptcy proceedings, having an attorney by your side ensures you have proper legal representation to protect your rights and interests.

8. Peace of Mind:

• Going through bankruptcy can be a stressful and emotional experience. Having a knowledgeable attorney to guide you through the process can provide peace of mind and reduce the burden on your shoulders.

While hiring a bankruptcy attorney comes with costs, it’s important to weigh those costs against the potential benefits and the long-term financial consequences of your bankruptcy case. Many bankruptcy attorneys offer free or low-cost initial consultations, allowing you to discuss your situation and explore your options before making a decision.

While it is possible to file for bankruptcy without an attorney in Carrollton, TX, it’s often in your best interest to consult with and hire an experienced bankruptcy lawyer, especially if your case is complex, involves valuable assets, or requires negotiation with creditors. An attorney can provide essential legal expertise, protect your rights, and help you achieve the best possible outcome in your bankruptcy proceedings. Ultimately, the decision should be based on your individual circumstances and the level of comfort and confidence you have in navigating the bankruptcy process on your own.

Cost to File Chapter 7 Bankruptcy in Carrollton, TX

The cost to file Chapter 7 bankruptcy in Carrollton, Texas, includes several components, such as filing fees, mandatory credit counseling fees, and attorney fees if you choose to hire a bankruptcy attorney. It’s important to have a clear understanding of these costs to make an informed decision about pursuing Chapter 7 bankruptcy.

1. Filing Fee:

• The filing fee for Chapter 7 bankruptcy in the Northern District of Texas, where Carrollton is located is $395. This fee is paid to the bankruptcy court when you submit your bankruptcy petition.

2. Credit Counseling and Financial Management Course Fees:

• Before you can file for Chapter 7 bankruptcy, you must complete two mandatory credit counseling courses, one before filing and one before receiving a discharge. These courses typically cost around $65 to $110 each. Some agencies offer fee waivers or reduced fees for those with financial hardship.

3. Attorney Fees:

• While you can file for Chapter 7 bankruptcy without an attorney (pro se), many individuals opt to hire an experienced bankruptcy attorney to navigate the process successfully. Attorney fees can vary widely based on your location, the complexity of your case, and the attorney’s experience. On average, you can expect to pay between $1,180 and $2,970 for Chapter 7 bankruptcy representation in Carrollton, TX. Some attorneys may offer payment plans to make their services more accessible.

4. Miscellaneous Costs:

• There may be other costs associated with your bankruptcy, such as fees for obtaining credit reports, photocopying documents, or mailing expenses. These costs are typically relatively minor but should be considered.

5. Exemption Costs:

• Depending on your specific financial situation and the exemptions you choose to claim, there may be associated costs. For example, if you need to appraise certain assets to determine their value for exemption purposes, you may incur appraisal fees.

It’s important to note that the costs mentioned here may have changed since then due to inflation or updates in court fees. Therefore, it’s advisable to check with the Northern District of Texas bankruptcy court or consult with a bankruptcy attorney in Carrollton for the most current fee information.

The cost to file Chapter 7 bankruptcy in Carrollton, TX, includes filing fees, credit counseling fees, attorney fees (if applicable), and potential miscellaneous expenses. It’s crucial to budget for these expenses and explore your options for financial assistance if needed. Consulting with a bankruptcy attorney can help you understand the full scope of costs involved in your specific case and make informed decisions about pursuing Chapter 7 bankruptcy as a means of debt relief.

Cost to File Chapter 11 Bankruptcy in Carrollton, TX

Filing for Chapter 11 bankruptcy in Carrollton, Texas, can be a complex and expensive process, primarily designed for businesses or individuals with significant assets and substantial debt. The cost of filing for Chapter 11 bankruptcy includes various fees, legal expenses, and administrative costs. Here’s an explanation of the key expenses involved:

1. Filing Fee:

• The initial filing fee for Chapter 11 bankruptcy is determined by the U.S. Bankruptcy Court and is subject to change. The filing fee for a Chapter 11 case is $2,120. This fee must be paid when you submit your bankruptcy petition to the court. It’s essential to check the current fee with the U.S. Bankruptcy Court in the Northern District of Texas or consult with a bankruptcy attorney for the most up-to-date information.

2. Attorney Fees:

• Chapter 11 bankruptcy cases are intricate and typically require the expertise of an experienced bankruptcy attorney due to their complexity. Attorney fees for Chapter 11 cases can vary significantly depending on the size and complexity of your case, the attorney’s experience, and the amount of work involved. It’s not uncommon for attorney fees in Chapter 11 cases to range from several thousand dollars to tens of thousands of dollars or more.

3. Administrative Costs:

• Chapter 11 bankruptcies often involve substantial administrative expenses. These costs can include fees for financial advisors, accountants, appraisers, and other professionals who may be necessary to assist in the restructuring and management of your financial affairs during the bankruptcy process.

4. U.S. Trustee Fees:

• In Chapter 11 cases, the U.S. Trustee’s office assesses quarterly fees based on your disbursements. These fees are meant to cover the administrative costs of overseeing your bankruptcy case. The exact amount of these fees can vary depending on your financial activity during the bankruptcy process.

5. Filing of Financial Reports:

• Chapter 11 debtors are required to submit various financial reports and disclosures throughout the bankruptcy process. The preparation and filing of these reports can incur additional costs, especially if you need professional assistance to compile and submit the required information.

6. Plan Confirmation Costs:

• The process of developing and confirming a Chapter 11 reorganization plan can be complex and costly. Legal and consulting fees related to plan development and negotiations may be substantial.

Due to the high costs and complexities involved in Chapter 11 bankruptcy, it’s highly recommended to consult with an experienced bankruptcy attorney in Carrollton, TX, who can assess your situation, provide guidance, and help you navigate the process effectively. Your attorney can also provide you with a clearer estimate of the total costs specific to your case and explore potential strategies to manage these expenses as you work towards a successful reorganization or debt repayment plan.

Cost to File Chapter 13 Bankruptcy in Carrollton, TX

Filing for Chapter 13 bankruptcy in Carrollton, Texas, involves several costs, including filing fees, attorney fees, credit counseling fees, and other potential expenses. Chapter 13 bankruptcy is often used by individuals to create a repayment plan for their debts. Here’s an explanation of the key costs associated with filing Chapter 13 bankruptcy:

1. Filing Fee:

• The filing fee for Chapter 13 bankruptcy in the Northern District of Texas, where Carrollton is located, was $410. This fee is paid to the bankruptcy court when you submit your bankruptcy petition. It’s important to verify the current filing fee with the U.S. Bankruptcy Court in your district, as fees can change over time.

2. Attorney Fees:

• Hiring a bankruptcy attorney is highly advisable when filing for Chapter 13 bankruptcy due to the complexity of the process. Attorney fees for Chapter 13 cases can vary based on factors such as the complexity of your case, the attorney’s experience, and the local legal market. On average, you can expect to pay between $2,985 and $4,650 for attorney representation in a Chapter 13 case. Some attorneys may offer payment plans to make their services more affordable.

3. Credit Counseling and Financial Management Course Fees:

• Before filing for Chapter 13 bankruptcy, you are required to complete two mandatory credit counseling courses. These courses typically cost around $68 to $120 each. Some agencies may offer fee waivers or reduced fees for individuals with financial hardship.

4. Miscellaneous Costs:

• There may be other minor expenses associated with your Chapter 13 bankruptcy case, such as fees for obtaining credit reports, photocopying documents, or mailing expenses.

5. Trustee Fees:

• In a Chapter 13 case, a bankruptcy trustee is appointed to oversee your repayment plan. The trustee is entitled to a percentage of the funds disbursed to creditors as a fee for their services. The exact percentage can vary but is typically around 10% of your monthly plan payments.

6. Plan Payments:

• While not a traditional “cost,” it’s essential to budget for your monthly plan payments, as these payments will be a significant part of your Chapter 13 bankruptcy. The amount you pay each month depends on your income, expenses, and the terms of your approved repayment plan.

Chapter 13 bankruptcy allows individuals to repay their debts over a three to five-year period while retaining their assets. It can be a valuable tool for those facing foreclosure, wage garnishment, or other financial difficulties.

It’s essential to consult with an experienced bankruptcy attorney in Carrollton, TX, before filing for Chapter 13 bankruptcy. Your attorney can help you assess your financial situation, guide you through the process, and provide a clear estimate of the total costs specific to your case. Additionally, they can work with you to create a repayment plan that is feasible and tailored to your financial circumstances, helping you achieve the best possible outcome.

Reliable Bankruptcy Attorneys in Carrollton, TX

Below is a list of reputable bankruptcy attorneys in Carrollton, TX. They can help you with both personal and business bankruptcy information.

Le Brocq & Horner Law Firm
2828 E Trinity Mls Rd # 221, Carrollton, TX 75006, United States

Bailey & Galyen Attorneys at Law
1000 E Belt Line Rd #210, Carrollton, TX 75006, United States

The Law Offices Of Tim O’Hare
1038 Elm St, Carrollton, TX 75006, United States

Hartley Law Firm
2340 E Trinity Mls Rd #100, Carrollton, TX 75006, United States

Chalaki Law Personal Injury Firm – Carrollton Office
3234 Commander Dr Suite 100, Carrollton, TX 75006, United States

Carrollton, TX Zip Codes We Proudly Serve:

75001, 75006, 75007, 75010, 75019, 75056, 75067, 75093, 75287

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