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

Am I Qualified for Bankruptcy?

Generally, both individuals and businesses can file for bankruptcy in Houston, Texas, subject to specific eligibility criteria. Here are some basic guidelines:

For Individuals:

1. Residency: You must be a resident of Texas or have a business or property in the state. There’s often a 180-day residency requirement before you can file.
2. Means Test: For Chapter 7 bankruptcy, you’ll need to pass a “Means Test” that compares your income to the median income for a household of your size in Texas. If your income is too high, you may have to file under Chapter 13.
3. Credit Counseling: Before filing, you’ll need to complete a credit counseling course from an approved agency.
4. No Recent Bankruptcy: If you’ve filed for bankruptcy in the past and received a discharge, there might be a waiting period before you can file again.

For Businesses:

1. Type of Business: Corporations, partnerships, and sole proprietorships can file. The most suitable bankruptcy chapter can differ depending on the business structure.
2. Financial Statements: Detailed financial records will be required, showcasing the business’s assets, liabilities, income, and expenses.
3. Solvency: Businesses can be either insolvent or solvent, but the available options and processes will differ.

Common Chapters:

• Chapter 7: This is a liquidation bankruptcy. For individuals, this is suitable if you have little or no disposable income. Businesses use this to completely close and liquidate.
• Chapter 13: This is a reorganization bankruptcy for individuals, suitable for those with regular income who can pay back some of their debts.
• Chapter 11: Mostly used by businesses, this allows them to continue operations while restructuring debt.

Always consult a qualified bankruptcy attorney to thoroughly understand your specific circumstances and options. Laws are subject to change, and state-specific regulations can apply.

Note that this information is intended for general informational purposes and should not be considered legal or financial advice.

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Do You Need a Lawyer to File For Bankruptcy in Houston?

While it’s technically possible to file for bankruptcy without an attorney (“pro se”), it is generally not recommended due to the complex and nuanced nature of bankruptcy law. Here are some reasons why consulting a lawyer is advisable:

Complexity:

Bankruptcy involves intricate laws, detailed paperwork, and specific deadlines. Mistakes can be costly and may result in your case being dismissed, meaning you’d still be responsible for your debts.

Type of Bankruptcy:

Choosing the correct type of bankruptcy to file (Chapter 7, Chapter 13, or Chapter 11 for businesses) can be difficult. Each has its own set of eligibility criteria, procedures, and implications. A lawyer can guide you through the decision-making process.

Asset Protection:

An attorney can help you understand how to protect important assets like your home or car, using state or federal exemptions. Misunderstanding these rules could result in the unnecessary loss of property.

Legal Representation:

Having legal representation can be beneficial in court, during the creditors’ meeting, or if complications arise during the process, such as objections from creditors or the trustee.

Negotiations:

An attorney can help negotiate the terms of a Chapter 13 repayment plan or a Chapter 11 restructuring plan, which can be complex and subject to various rules.

Cost-Benefit Analysis:

Though hiring a lawyer adds to your costs, the benefits often outweigh the expenses. Filing incorrectly can cost more in the long run if your bankruptcy case is dismissed or if you lose assets you could have protected.

Local Laws and Trustees:

Local regulations and individual trustees can have specific requirements. A local Houston-based bankruptcy lawyer would be familiar with these and can guide you accordingly.

Given the stakes involved in a bankruptcy filing and the intricate nature of bankruptcy law, most people find that hiring a qualified attorney offers the best chance of successfully navigating the process. Even so, if your case is straightforward and you’re comfortable with legal work, self-filing is an option, but it comes with risks.

Note: This information is for general informational purposes and should not be construed as legal advice. Always consult a qualified bankruptcy attorney for your specific needs.

Cost to File Chapter 7 Bankruptcy in Houston

The cost of filing for Chapter 7 bankruptcy can vary depending on various factors, including attorney fees, court costs, and additional expenses like credit counseling. Here are some of the general costs you might encounter:

Court Fees:

The filing fee for a Chapter 7 bankruptcy case is typically around $395. This fee is paid to the court and is generally non-negotiable.

Attorney Fees:

Attorney fees can vary widely depending on the complexity of your case and the specific attorney you choose. In Houston, these fees can range from approximately $1,200 to $3,500 for a relatively straightforward Chapter 7 case. More complicated cases will likely be more expensive.

Credit Counseling and Debtor Education:

You’re required to take a credit counseling course before filing for bankruptcy and a debtor education course before your debts are discharged. Each of these courses usually costs between $30 and $60.

Additional Costs:

Other possible costs include fees for retrieving financial documents, like tax returns or bank statements, which can vary.

In total, you might expect to pay anywhere from $1,400 to $4,000 for a Chapter 7 bankruptcy when all costs are included, though these are just general figures. Some attorneys might offer a free initial consultation or payment plans to help offset the costs.

It’s important to consult with multiple attorneys to get a better understanding of the potential costs specific to your situation. Some low-income filers might be eligible for waived court fees or pro bono legal services.

Remember, while the upfront cost might seem high, bankruptcy can provide a fresh start by discharging many types of debt, which can outweigh the initial financial burden.

Cost to File Chapter 11 Bankruptcy in Houston

Filing for Chapter 11 bankruptcy is generally more complex and expensive than filing for Chapter 7 or Chapter 13 bankruptcy. The costs can vary widely based on the complexity of the case, the attorneys involved, and the specific circumstances of the debtor. Here’s a general breakdown of the costs you might expect:

Court Fees:

The filing fee for a Chapter 11 case is approximately $1,900, although this is subject to change. This fee is paid directly to the bankruptcy court.

Attorney Fees:

Attorney fees for Chapter 11 cases are much higher than for Chapter 7 or Chapter 13 due to the complexity and often lengthy nature of the process. Fees can range from $10,000 to $50,000 or more, depending on the complexity of the case, the size of the debtor’s business, and the law firm involved.

Additional Professional Fees:

Chapter 11 cases often require the involvement of other professionals like accountants, appraisers, and financial advisors. Their fees can add thousands of dollars to the total cost.

U.S. Trustee Fees:

Chapter 11 debtors are typically required to pay fees to the U.S. Trustee Program, based on their disbursements. These fees can vary but are generally a percentage of the debtor’s total disbursements each quarter.

Administrative Costs:

These can include costs for mailing, printing, and other miscellaneous administrative tasks, which can add up over time.

Plan Confirmation:

In order to exit bankruptcy successfully, a Chapter 11 debtor needs to have a reorganization plan confirmed by the court, which can involve additional fees and costs.

In summary, the cost to file for Chapter 11 bankruptcy in Houston can be quite high, easily running into tens of thousands of dollars or more. However, the exact cost will depend on a variety of factors, including the complexity of your financial situation and the professionals you choose to work with.

Given the high financial and legal stakes involved, it’s strongly recommended to consult with experienced bankruptcy attorneys and financial advisors before proceeding with a Chapter 11 filing.

Cost to File Chapter 13 Bankruptcy in Houston

The costs associated with filing a Chapter 13 bankruptcy in Houston can vary, but they generally consist of court fees, attorney fees, and additional costs like mandatory education courses. Here’s a general breakdown:

Court Fees:

The filing fee for a Chapter 13 bankruptcy is usually around $380, payable to the court. This fee is generally consistent across jurisdictions but can change over time.

Attorney Fees:

Legal fees for Chapter 13 bankruptcy can vary widely depending on the complexity of your case and the attorney you choose. In Houston, attorney fees for a Chapter 13 bankruptcy can range from approximately $2,900 to $6,000 or more. Some attorneys may ask for a portion of their fee upfront and allow the remainder to be paid through the Chapter 13 payment plan.

Credit Counseling and Debtor Education:

You are required to complete a credit counseling course before filing and a debtor education course before your debts are discharged. Each course usually costs between $25 and $50.

Additional Costs:

Other minor costs could include fees for obtaining credit reports, making copies of financial documents, or any other administrative tasks. These costs are typically minimal but should not be overlooked.

Total Estimated Cost:

Adding all these together, you can expect to pay somewhere between $2,900 and $6,500 for a Chapter 13 bankruptcy filing in Houston, though these are just general figures.

While this might seem like a substantial amount, it’s worth considering the benefits that Chapter 13 offers, such as the ability to catch up on missed mortgage payments, reschedule secured debts, and sometimes even discharge certain types of unsecured debt. Additionally, attorney fees can often be incorporated into your repayment plan, making it more manageable.

It’s crucial to consult with a qualified bankruptcy attorney to get an accurate estimate tailored to your specific circumstances. Many attorneys offer free initial consultations and can provide payment plan options.

Reliable Bankruptcy Attorneys in Houston, TX

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

Jesse Aguinaga Attorney at Law P.C.
8323 Southwest Fwy # 670, Houston, TX 77074

Rashid Law Firm
10222 Gulf Fwy Suite B-100, Houston, TX 77034

Law Office of David A. Fernandez, PC
2190 N Loop W #333, Houston, TX 77018

Keeling Law Firm
3310 Katy Freeway Service Road 2nd Floor, Houston, TX 77007

Houston Zip Codes We Proudly Serve:

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