Exploring Texas Bankruptcy Options

 Posted on July 02, 2014 in Chapter 7

The American economy has seen better days since the financial collapse of 2008, having a significant impact on citizens from all walks of life. The concept of bankruptcy was once foreign to many, whereas in contemporary society it has become a serious reality. In fact, government statistics indicated over a million new bankruptcy cases were filed in 2013. Many residents of Texas in particular have seen hard economic times. It is a trend that dates back decades.

According to the U.S. Census Bureau, Texas has seen a much higher overall poverty rate compared to the rest of the country since at least 1980. Naturally, instances of bankruptcy have followed a similar trend. It is crucial to consult with a time-tested, reliable, and accommodating bankruptcy attorney to ensure your personal needs will be met on an individual basis.

Consider the following factors when filing for bankruptcy in Texas, keeping in mind the intricacies that must be addressed in depth with each concept:

• Chapter 7 bankruptcy in Texas: The most common form of consumer bankruptcy, Chapter 7 offers the benefit of absolving much of your debt. On the other hand, the pitfall of Chapter 7 can be staggering. Any nonexempt assets are often liquidated to pay off as much as possible. This type of bankruptcy is also more likely to negatively affect your credit for a longer period of time.

• Filing for Chapter 13: Generally the option for individuals with an income higher than the average, Chapter 13 offers a strict payment schedule in exchange for a better protection of assets such as your home and automobile. In addition, Chapter 13 subsidizes payments based only on disposable income, and helps to maintain your quality of life through and after the process.

• Texas-specific bankruptcy options: Texas offers consumers options not available in other states. For instance, the state allows you to choose between Federal bankruptcy exemptions, or Texas’ own exemptions. State homestead exemptions allow you to retain the value of your home and property, and other regulations can also make this applicable to your vehicle, as well as things such as farming equipment and even livestock.

The avenue you choose to pursue when filing for bankruptcy in Texas will always be dependant on your individual situation, and making an incorrect decision can hurt you financially in both the long and short term. Nobody wants to end up in a situation where bankruptcy is the only option. However, making a proactive decision when choosing an attorney can put you back on track towards financial recovery.

At the Law Offices of Chance M. McGhee, our attorneys serve the greater San Antonio, Texas area and strive to work with our clients on an individual basis. We offer more than just twenty years of experience in Texas bankruptcy cases. You can expect personalized services catered directly to your needs using the opportunities the State of Texas has open to consumers. Contact the Law Offices of Chance M. McGhee today for any and all of your bankruptcy needs.