Texas has a very different and very generous homestead exemption compared to most other states. Most homestead exemptions—in other states and in federal law—impose a specific dollar limit on the how much value in a home you can protect. There no such limit in Texas. Our homestead exemption does have some other kinds of limits and conditions, but … [Read more...]
The Truth about Bankruptcy Petition Preparers
June 26, 2013 by
A “bankruptcy petition preparer” under bankruptcy law (Section 110(a)(1) of the Bankruptcy Code) is someone who gets paid for preparing documents that are filed in a bankruptcy case, but is “not an attorney for the debtor” nor “an employee of such attorney under the direct supervision of such attorney.” There are two basic reasons why a person … [Read more...]
What is “Conversion” from Chapter 13 to Chapter 7?
June 19, 2013 by
Following up on my last blog, “conversion” means switching from one chapter of bankruptcy to another before the case is completed. In the last blog I discussed converting from Chapter 7 to 13; now about converting from Chapter 13 to 7, that is, from the “adjustment of debts” payment plan to a “straight bankruptcy.” The reasons to convert from … [Read more...]
What is “Conversion” from Chapter 7 to Chapter 13?
May 24, 2013 by
“Conversion” is switching from one bankruptcy chapter to another before the bankruptcy case is completed. Focusing here on “converting” from Chapter 7 to 13, why would you want to make this switch between these very different options? You would do so essentially, either voluntarily and involuntarily. Either because 1) changed circumstances make … [Read more...]
Debts Not Discharged in Chapter 7
May 6, 2013 by
The vast majority of debts are “discharged”—legally written off—if you file a “straight bankruptcy” Chapter 7 case. Bankruptcy law actually says that ALL debts are discharged EXCEPT for a limited list of specific kinds of debts that are not. So, the discharge of debts granted under Section 727 of the Bankruptcy Code applies to ALL debts except … [Read more...]
Jumping Over the Easy but Necessary “Credit Counseling” Hurdle
April 22, 2013 by
Before you can file a personal bankruptcy case, you have to go through what for all practical purposes is nothing more than a bureaucratic formality. However, it is a strict legal requirement that can cause unnecessary headaches if not done correctly, so it's important to understand it. It's the Law Here is what the U.S. Bankruptcy Code says you … [Read more...]
What Is a “Fraudulently Incurred” Debt?
April 1, 2013 by
Which Debts are “Fraudulent”? The discharge—legal write-off—of a debt can be challenged if at the time the debtor received the credit — the “money, property, services, or an extension, renewal, or refinancing of credit”—it was a result of his or her intentional misrepresentation, and the creditor relied on that misrepresentation in extending the … [Read more...]
Don’t Give Your Car Away or Repay Your Friend Before Filing Bankruptcy
March 25, 2013 by
Bankruptcy law has traps for the unwary as any area of law, and here are two very important ones. They are traps because they seem to not only go against common sense, but against what would otherwise be the honorable and the morally right thing to do. These two have to do with transactions—transfers of your possessions and your payments on … [Read more...]
The All-Important “Automatic Stay”
March 11, 2013 by
The “automatic stay” goes into effect the moment your bankruptcy case is filed. It is a provision in the bankruptcy law which stops virtually all efforts by your creditors to chase you or your property at the moment of filing. “Stay” is the legal word for “stop.” It is “automatic” because the very act of filing your case “operates as a stay” … [Read more...]
Chapter 7’s Treatment of Secured Debts
February 25, 2013 by
A Chapter 7, sometimes called “straight bankruptcy,” provides you with a number of important advantages with your secured debts. Those are debts in which your obligation to pay is secured by collateral, specifically by certain rights that the creditor has over your collateral. If you do not stay current on the agreed payments on the debt, the … [Read more...]
