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

Am I Qualified for Bankruptcy?

Filing for bankruptcy is a legal process that provides individuals and businesses with a fresh financial start by eliminating or restructuring their debts. The qualifications for filing bankruptcy in Garland, Texas, are primarily governed by federal bankruptcy laws, specifically the United States Bankruptcy Code, which applies uniformly across the country. However, there are certain factors and requirements you should consider when determining if you are qualified to file for bankruptcy in Garland, TX.

1. Type of Bankruptcy: The Bankruptcy Code offers several chapters under which individuals and businesses can file for bankruptcy, with the most common being Chapter 7 and Chapter 13. To determine if you are qualified, you must decide which type of bankruptcy suits your financial situation best.
   • Chapter 7: This is often referred to as “liquidation” bankruptcy. To qualify for Chapter 7 bankruptcy in Garland, TX, you will typically need to pass a means test. The means test compares your household income to the median income in Texas for a household of your size. If your income is below the median, you generally qualify for Chapter 7. If it’s above, you may still qualify by demonstrating that your expenses and financial situation justify filing for Chapter 7.
   • Chapter 13: This is a “reorganization” bankruptcy. To qualify for Chapter 13 bankruptcy, you must have a regular income that allows you to make a repayment plan to pay off your debts over three to five years. Chapter 13 can be a good option if you have significant assets you want to protect, like a home or car, and you want to catch up on missed payments.
2. Credit Counseling Requirement: Before filing for bankruptcy in Garland, TX, you must complete credit counseling from an approved agency within 180 days prior to filing. You will also need to complete a debtor education course after filing but before your debts can be discharged.
3. Residency and Jurisdiction: To file for bankruptcy in Garland, TX, you must meet certain residency requirements. Generally, you need to have lived in Texas for at least 91 out of the 180 days immediately preceding your bankruptcy filing.
4. Prior Bankruptcy Discharges: If you have previously filed for bankruptcy and received a discharge, there are waiting periods between filings. For example, if you received a discharge in a Chapter 7 case, you must wait eight years before you can file another Chapter 7. If you received a discharge in a Chapter 13 case, you must wait six years before filing another Chapter 13 or four years before filing for Chapter 7.
5. Honesty and Full Disclosure: When filing for bankruptcy in Garland, TX, it’s crucial to provide complete and accurate information about your financial situation. Failing to disclose assets, debts, or other relevant information can lead to your case being dismissed or even criminal charges.
6. Special Circumstances: Some situations may affect your eligibility or the type of bankruptcy you can file. For example, if you are a business owner, you may consider Chapter 11 bankruptcy. If you have primarily non-consumer debts, you might qualify for Chapter 12. It’s important to consult with a bankruptcy attorney to understand the best approach for your unique circumstances.
7. Exemptions: Texas has specific exemptions that allow you to protect certain assets from being liquidated in a Chapter 7 bankruptcy. These exemptions include homestead exemptions, personal property exemptions, and more. Understanding these exemptions is crucial when determining if bankruptcy is right for you.

Whether you are qualified to file for bankruptcy in Garland, TX, depends on various factors, including your income, residency, previous bankruptcy history, and the type of bankruptcy you wish to pursue. It’s highly recommended that you consult with an experienced bankruptcy attorney in Garland or the surrounding area to assess your eligibility, understand your options, and navigate the complex legal processes associated with bankruptcy. An attorney can help you make an informed decision and guide you through the bankruptcy process, ensuring the best possible outcome for your financial situation.

RESOURCES:

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

Filing for bankruptcy in Garland, Texas, is a complex legal process that can have significant long-term implications for your financial future. While it is not legally required to hire a lawyer to file for bankruptcy, there are compelling reasons why seeking legal counsel is highly advisable in most cases.

Here are several key reasons why you should consider hiring a lawyer when filing for bankruptcy in Garland, TX:

1. Complexity of Bankruptcy Law: Bankruptcy law is intricate and constantly evolving. It involves federal and state laws, as well as court procedures and rules. A bankruptcy attorney is well-versed in these laws and can help you navigate the complexities, ensuring you follow all legal requirements and deadlines.
2. Understanding Your Options: There are different types of bankruptcy chapters, including Chapter 7 (liquidation), Chapter 13 (reorganization), and Chapter 11 (business reorganization). An attorney can assess your financial situation and help you choose the most suitable chapter based on your goals and circumstances.
3. Means Testing: If you’re considering Chapter 7 bankruptcy, you’ll need to pass a means test to determine your eligibility. A lawyer can help you accurately calculate your income and expenses, ensuring you meet the requirements or explore alternatives if you don’t qualify.
4. Protection of Assets: Bankruptcy exemptions in Texas can help protect certain assets from being liquidated in a Chapter 7 bankruptcy. An attorney can advise you on how to maximize the use of exemptions, safeguarding your property.
5. Debt Discharge: Your attorney can assist you in identifying which debts can be discharged and which cannot. This is crucial because some debts, like student loans and certain tax obligations, may not be dischargeable.
6. Avoiding Common Mistakes: Bankruptcy filings are filled with potential pitfalls and legal traps. Failing to disclose all assets, provide accurate financial information, or follow the court’s procedures can result in your case being dismissed or even facing criminal charges. An attorney can help you avoid these costly mistakes.
7. Representation in Court: Bankruptcy proceedings often involve court appearances and meetings with creditors. Having an attorney by your side can provide you with peace of mind and confidence when dealing with these legal processes.
8. Negotiating with Creditors: In a Chapter 13 bankruptcy, your attorney can negotiate with creditors to create a manageable repayment plan that takes your income and expenses into account. This can be highly beneficial in protecting your assets and reducing your debt burden.
9. Creditor Harassment: Once you file for bankruptcy, an automatic stay goes into effect, preventing creditors from pursuing collection actions. If creditors continue to harass you, your attorney can take legal action to enforce the automatic stay.
10. Post-Bankruptcy Planning: A bankruptcy attorney can also assist you in planning for your financial future after bankruptcy, helping you rebuild your credit and make informed decisions about your finances.

While it’s not mandatory to hire a lawyer to file for bankruptcy in Garland, TX, it is strongly recommended due to the complexity of bankruptcy law and the potential risks involved. A qualified bankruptcy attorney can guide you through the process, protect your interests, and increase your chances of a successful bankruptcy resolution, ultimately helping you achieve the fresh financial start you need. Before proceeding, consider consulting with a bankruptcy attorney to discuss your specific situation and determine the best course of action.

Cost to File Chapter 7 Bankruptcy in Garland, TX

The cost to file Chapter 7 bankruptcy in Garland, Texas, includes several fees and expenses. It’s important to be aware of these costs as they can add up, but in many cases, they are necessary to obtain debt relief through bankruptcy. Here’s a breakdown of the typical expenses associated with filing for Chapter 7 bankruptcy:

1. Filing Fee: The primary fee for filing Chapter 7 bankruptcy is the filing fee paid to the bankruptcy court. However, these fees can change, so it’s essential to check the current fee schedule with the U.S. Bankruptcy Court for the Northern District of Texas or consult with a local bankruptcy attorney for the most up-to-date information.
2. Credit Counseling and Debtor Education Courses: Before and after filing for bankruptcy, you are required to complete credit counseling and debtor education courses from approved providers. These courses typically cost between $28 and $58 each. Keep in mind that these costs can vary depending on the provider you choose.
3. Attorney Fees: While not a mandatory cost, it’s highly advisable to hire a bankruptcy attorney to assist you throughout the Chapter 7 bankruptcy process. Attorney fees can vary significantly based on the complexity of your case, your location, and the attorney’s experience. On average, you can expect attorney fees for a straightforward Chapter 7 case in Garland, TX, to range from $1,200 to $2,800 or more.
4. Mandatory Credit Report: You may need to obtain a recent credit report to ensure you include all your creditors in your bankruptcy filing. The cost for obtaining a credit report can vary but is generally around $37 to $50.
5. Miscellaneous Costs: There may be other miscellaneous expenses, such as postage, copying, notary fees, and transportation costs associated with attending mandatory meetings or hearings.
6. Exemption for Low-Income Filers: If you are unable to afford the Chapter 7 filing fee and meet specific income requirements, you may request a fee waiver or apply to pay the fee in installments. Your bankruptcy attorney can assist you with this process.
7. Waiver of Credit Counseling Fees: If your income is below 150% of the federal poverty guidelines, you may also be eligible for a waiver of the credit counseling and debtor education course fees.

When considering bankruptcy, it’s essential to weigh the costs against the potential benefits of eliminating unmanageable debts and gaining a fresh financial start. An experienced bankruptcy attorney can help you understand your options, assess your financial situation, and guide you through the process while minimizing costs where possible. Keep in mind that bankruptcy can provide substantial relief from debt, but it’s a decision that should be made after careful consideration and consultation with a legal professional.

Cost to File Chapter 11 Bankruptcy in Garland, TX

Filing for Chapter 11 bankruptcy in Garland, Texas, can be a complex and costly process, as Chapter 11 is primarily designed for businesses and individuals with substantial debts seeking to reorganize their finances. The cost of filing for Chapter 11 bankruptcy can vary widely based on the size and complexity of the case, but here’s a general overview of the key expenses involved:

1. Filing Fee: The initial filing fee for a Chapter 11 bankruptcy case can be significant. However, these fees are subject to change, so it’s essential to check the current fee schedule with the U.S. Bankruptcy Court for the Northern District of Texas or consult with a bankruptcy attorney for up-to-date information.
2. Attorney Fees: Given the complexity of Chapter 11 cases, legal representation by experienced bankruptcy attorneys is essential. Attorney fees for Chapter 11 cases are typically substantial due to the extensive work involved in negotiating and drafting a reorganization plan, meeting with creditors, and addressing various legal issues. Attorney fees can vary widely based on the complexity and scope of your case but often start at several thousand dollars and can reach tens of thousands or more.
3. U.S. Trustee Fees: In addition to the filing fee, Chapter 11 debtors are required to pay quarterly fees to the U.S. Trustee’s office. These fees are based on the debtor’s disbursements, and the U.S. Trustee establishes the amount. They can be significant, especially for larger businesses.
4. Credit Counseling and Debtor Education Courses: Like other bankruptcy chapters, Chapter 11 filers must complete credit counseling and debtor education courses from approved providers. The costs for these courses are generally between $28 and $58 each.
5. Administrative Expenses: Throughout the Chapter 11 process, various administrative expenses may arise, including court costs, fees for professionals such as accountants or appraisers, and costs related to operating and managing the business during bankruptcy.
6. Mandatory Fees for Small Business Debtors: If you qualify as a “small business debtor” under the Bankruptcy Code, you may be eligible for certain cost-saving provisions, such as reduced filing fees and a streamlined process for reorganization.

It’s crucial to understand that Chapter 11 bankruptcy is a highly specialized area of law, and navigating it successfully requires the expertise of qualified bankruptcy professionals, including attorneys, accountants, and financial advisors. While the costs associated with Chapter 11 can be substantial, it’s often the most viable option for businesses and individuals with complex financial situations, as it allows for the reorganization and potential continuation of business operations.

Cost to File Chapter 13 Bankruptcy in Garland, TX

Filing for Chapter 13 bankruptcy in Garland, Texas, involves various costs and fees. Chapter 13 bankruptcy is a reorganization bankruptcy option that allows individuals with a regular income to create a repayment plan to pay off their debts over a period of three to five years. Here’s a breakdown of the typical expenses associated with filing for Chapter 13 bankruptcy:

1. Filing Fee: The filing fee for a Chapter 13 bankruptcy case is $370. However, these fees can change over time, so it’s essential to check the current fee schedule with the U.S. Bankruptcy Court for the Northern District of Texas or consult with a local bankruptcy attorney for the most up-to-date information.
2. Attorney Fees: While not required, it is highly recommended to hire a bankruptcy attorney to assist you with your Chapter 13 case. Attorney fees can vary depending on the complexity of your case, your location, and the attorney’s experience. On average, attorney fees for a Chapter 13 case in Garland, TX, may range from $2,900 to $4,800 or more. These fees can be paid through your Chapter 13 repayment plan, making it more manageable.
3. Credit Counseling and Debtor Education Courses: Like other bankruptcy chapters, Chapter 13 filers must complete credit counseling and debtor education courses from approved providers. These courses typically cost between $28 and $58 each.
4. Plan Payments: In Chapter 13 bankruptcy, you will create a repayment plan to pay off a portion of your debts over several years. Your plan payments are a significant part of the cost of filing for Chapter 13. The amount of your plan payments will depend on various factors, including your income, expenses, and the total amount of debt you owe.
5. Trustee Fees: In a Chapter 13 case, a bankruptcy trustee oversees your repayment plan and collects your plan payments. The trustee is entitled to a fee, which is typically a percentage of the total payments made through the plan. This fee is factored into your overall repayment plan.
6. Mandatory Credit Report: You may need to obtain a recent credit report to ensure you include all your creditors in your bankruptcy filing. The cost for obtaining a credit report can vary but is generally around $37 to $50.
7. Miscellaneous Costs: There may be other miscellaneous expenses associated with your Chapter 13 case, such as postage, copying, notary fees, and transportation costs for attending mandatory meetings or hearings.

Chapter 13 bankruptcy can be a valuable tool for individuals who want to reorganize their finances and repay their debts over time while protecting their assets. While there are costs associated with filing for Chapter 13, many individuals find it to be a manageable and effective way to regain control of their financial situation. Consulting with a bankruptcy attorney in Garland, TX, is a prudent step to determine if Chapter 13 is the right solution for your specific circumstances.

Reliable Bankruptcy Attorneys in Garland, TX

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

Schorr Law Firm
328 W Interstate 30, Garland, TX 75043, United States

Best Law Center
870 W Interstate 30, Garland, TX 75043, United States

Thompson Law Injury Lawyers – Garland Office
375 Cedar Sage Dr Suite 285, Garland, TX 75040, United States

Ben Abbott & Associates
1934 Pendleton Dr, Garland, TX 75041, United States

MASSAR LAW OFFICES
310 E Interstate 30 #100, Garland, TX 75043, United States

Garland, TX Zip Codes We Proudly Serve:

75040, 75041, 75042, 75043, 75044, 75048, 75081, 75082, 75089, 75098, 75150, 75218, 75228, 75238, 75243

---