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

Am I Qualified for Bankruptcy?

When it comes to determining eligibility for bankruptcy in Grand Prairie, TX, there are a few factors to consider. Bankruptcy laws are federal in nature, but local laws and regulations in Texas can affect specific details of the process.

To begin with, whether or not you qualify for bankruptcy will largely depend on the type of bankruptcy you wish to file: Chapter 7, Chapter 11, or Chapter 13. Each has its own set of eligibility criteria.

For Chapter 7, commonly known as “liquidation bankruptcy,” you would need to pass the “means test.” This test compares your household income with the median income in Texas. If your income is below the median, you may qualify for Chapter 7. If it’s above, you might still qualify, but there are additional calculations to determine that. Prior bankruptcy discharges can also affect eligibility. If you’ve received a Chapter 7 discharge in the past eight years or a Chapter 13 discharge in the past six years, you may not be eligible.

Chapter 11 is typically for businesses but can be used by individuals too. The qualifications for this chapter are less stringent regarding income but can be more complex due to the intricacies of business finances.

Chapter 13, also known as a “wage earner’s plan,” requires you to have a steady source of income to make payments according to the plan’s stipulations. There are also debt limits; your unsecured debts must be below $419,275, and secured debts must be under $1,257,850.

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

While it’s legally possible to file for bankruptcy without an attorney, known as “pro se,” it’s often not recommended, especially if you’re unfamiliar with bankruptcy laws. A bankruptcy lawyer can guide you through the complex maze of paperwork, rules, and regulations.

A common misconception is that filing for bankruptcy is merely filling out some forms. However, the truth is that bankruptcy laws are intricate. A minor error on your part can lead to your case being dismissed or assets unnecessarily liquidated.

A bankruptcy attorney can provide advice tailored to your specific situation. They can help determine which chapter is right for you, advise on property exemptions, and ensure that all documentation is correctly filed.

While lawyers do come with fees, many individuals find that the benefits, both in terms of peace of mind and potential savings, outweigh the costs.

Cost to File Chapter 7 Bankruptcy in Grand Prairie, TX

The primary cost associated with filing Chapter 7 bankruptcy is the filing fee is $398. However, this can change, so always check current rates.

Apart from the filing fees, you should consider the cost of mandatory credit counseling and debtor education courses. These typically range from $20 to $50 each, though fee waivers are sometimes available for those with financial hardship.

If you hire an attorney, their fees can range widely based on experience, complexity of your case, and regional variations. On average, attorney fees for Chapter 7 in Texas might be anywhere from $1,200 to $2,800.

Cost to File Chapter 11 Bankruptcy in Grand Prairie, TX

Chapter 11 is the most complex and consequently the most expensive bankruptcy option. The filing fee is $1,798, though it’s essential to keep updated with current rates.

Given the intricacy of Chapter 11, attorney fees can be significantly higher, ranging from $11,000 to $34,000 or more for businesses. For individuals, the cost might be a bit lower, but the variability is significant based on the case’s specifics.

Cost to File Chapter 13 Bankruptcy in Grand Prairie, TX

For Chapter 13, the filing fee is $313. Again, always verify current rates before proceeding.

Credit counseling and debtor education courses are also mandatory, with the same general costs as with Chapter 7.

Attorney fees for Chapter 13 can vary, but many attorneys charge a flat fee, ranging from $3,200 to $5,700. Some may ask for an upfront payment, with the remainder incorporated into your repayment plan.

In conclusion, while bankruptcy can offer a fresh start, it’s crucial to understand the qualifications, costs, and benefits of having legal counsel. Always ensure you’re informed before making any decisions.

Reliable Bankruptcy Attorneys in Grand Prairie, TX

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

Davis ​Ermis ​& ​Roberts ​P.C.

726 Dalworth St # 1001, Grand Prairie, TX 75050, United States

Michael Parum Attorney At Law

2306 Oak Ln #105, Grand Prairie, TX 75051, United States

Grand Prairie, TX Zip Codes We Proudly Serve:

75050, 75051, 75052, 75054, 75060, 75104, 75211, 76002, 76006, 76010, 76011, 76018, 76063, 76065, 76084

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