The Woodlands TX Bankruptcy Attorney » Fundamentals

What Are Your Intentions?

Rich Shea — Mon, 03 Jan 2011 12:56:08 +0000

Within 30 days of filing your petition for Chapter 7 Bankruptcy relief your bankruptcy attorney must file your Statement of Intentions with the court. If your Meeting of Creditors is scheduled earlier than 30 days after your case is filed then you must file the Statement of Intentions before that meeting.

The Statement of Intentions applies to all real or personal property you own that serves as collateral for a debt.

For each piece of property you must state:

whether you will surrender the property or keep the property;
whether you will redeem the property;
whether you will reaffirm the debt secured by the property; and
whether the property will be claimed as exempt.

If you are not sure how to answer these important questions then speak with a Woodlands Bankruptcy Attorney today about representing you through the bankruptcy process to protect your rights and property.

Follow-Through

You are generally required to follow-through on your intention for each piece of property within 30 days after the first date scheduled for the Meeting of Creditors. If you intend to surrender the property that means being prepared to turn the property over. If you intend to redeem the property that means having the funds necessary to perform the redemption. If you intend to reaffirm the debt that means having a reaffirmation agreement in place with the creditor.

2010 Federal Bankruptcy Exemptions

Rich Shea — Tue, 22 Jun 2010 21:05:32 +0000

Every three years the federal bankruptcy exemptions are adjusted for inflation. The adjustment for 2010 applies to cases filed on or after April 1,2010. The federal bankruptcy exemptions are:

Homestead: $21,625
Vehicle: $3,450
Household Goods: $11,525 total with no single item exceeding $550
Jewelry: $1,450
Wild Card: $1,450
Tools of the Trade: $2,175
Unmatured Life Insurance: $11,525
Personal Injury Claims: $21,625
IRA: $1,171,650

Remember these are only the federal exemptions. Texas also has its own set of bankruptcy exemptions which you may be entitled to keep. Exactly which set provides you with the most protection depends on your unique circumstances. Your bankruptcy lawyer can review your situation and help you pick to best exemption rules.

Get Help

The Shea Law Firm is here to help you get through the bankruptcy process and protect your rights to the fullest extent. Don’t risk losing property you may be able to keep. Call (832) 592-7913 and speak with a Woodlands bankruptcy lawyer today.

LoneStarBankruptcy.com provides the latest news and information on Chapter 7 and Chapter 13 bankruptcy in the Southern District of Texas. The Federal Bankruptcy Court for the Southern District of Texas covers many communities including: Houston, Spring, Conroe, The Woodlands, Montgomery County, and Harris County. If you need legal assistance with a personal bankruptcy matter speak with a local bankruptcy attorney today.

Texas Bankruptcy Exemptions – Jewelry

Rich Shea — Wed, 06 Jan 2010 12:39:14 +0000

Exempt property is the property you can keep in a Chapter 7 case without having to turn over to the bankruptcy trustee. Any property you have that your Conroe Bankruptcy Attorney does not claim as exempt or that does not qualify as exempt is subject to being turned over to the bankruptcy trustee and liquidated to repay debts. Texas law provides for several property exemptions. Today we will examine the exemption for jewelry.

Sections 42.001(a) and 42.002(a)(6) of the Texas Property Code allow an exemption for jewelry not to exceed 25 percent of the aggregate limitations prescribed for exempting personal property. As of this date, the personal property exemption limit is $30,000 for an individual or $60,000 for an individual that qualifies as head of a family unit.

How Does the Jewelry Exemption Work?

In a case where you can exempt $30,000 of exempt personal property, the jewelry exemption is limited to $7,500.

In a case where you can exempt $60,000 of exempt personal property the jewelry exemption is limited to $15,000.

Both of these figures are aggregate amounts, meaning all of your jewelry combined cannot exceed the above dollar amounts. It is not a per item exemption.

Get Help

Your Conroe Bankruptcy Attorney is here to help you get through the bankruptcy process and protect your rights to the fullest extent. Keep all the property you are entitled to keep with your exemptions. Get help today.

In re Fink, Case No. 07-36827-H3-7 (Bankr. S.D. Tex. 9/17/2009)

What Is Your Current Monthly Income?

Rich Shea — Tue, 29 Dec 2009 00:36:06 +0000

Last time we began to look at the Means Test your bankruptcy attorney must prepare for your case if you are attempting to qualify for the benefits of Chapter 7 bankruptcy. A vital component to the Means Test is the calculation of your Current Monthly Income. In order to determine your Current Monthly Income (CMI), your Conroe Bankruptcy Attorney will average certain income that you (and in a joint case, your spouse) received in the six months before your bankruptcy filing.

CMI includes:

income from all sources, whether or not taxable, and
any amount paid by an entity or person other than you (or your spouse in a joint case) on a regular basis for your household expenses, your dependents, and (in a joint case) your spouse if not otherwise a dependent.

What Must Be Included?

The following types of income will be included in your Current Monthly Income. Additional items may be included depending on the circumstances of your case.

Gross wages (before taxes, salary, tips, bonuses, overtime, commissions
Income from the operation of a business, profession, or farm.
Rent and other real property income
Interest, dividends, and royalties.
Pension and retirement income.
Regular contributions to the household expenses of the debtor or the debtor’s dependents, including child or spousal support.
Unemployment compensation.
Income from all other sources.

Is Anything Excluded?

The federal Bankruptcy law excludes from your CMI “benefits received under the Social Security Act” and certain payments to victims of terrorism, war crimes, and crimes against humanity.

Get Help

Your Conroe Bankruptcy Attorney is here to help you get through the bankruptcy process and protect your rights to the fullest extent. Don’t let a mistake in calculating your Current Monthly Income or another issue harm your pursuit of debt relief. Get help today.

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The Chapter 7 Means Test

Rich Shea — Mon, 21 Dec 2009 14:46:22 +0000

The Means Test was created in the Bankruptcy Reform Act of 2005. It may be the most important test you are facing right now. If you fail it you may not be eligible for a Chapter 7 discharge of debts. If you pass it, then you can pursue a Chapter 7 discharge with the help of your Montgomery County Bankruptcy Attorney.

What is the Means Test?

The Means Test is an income test to determine if your are eligible to file a Chapter 7 bankruptcy. Your bankruptcy attorney must complete several steps to complete your Means Test. First, we look back and average your income over the six month period prior to filing the case. Next, your bankruptcy attorney compares your income to the median household income in your county for a household of a similar size. If your income is below the median income, your are presumptively eligible to file a Chapter 7.

If Your Income is Too High

If your income is above the median, it requires additional analysis to determine if you are eligible to file Chapter 7. You may still be eligible, but your bankruptcy attorney will need to build a case for you based on your expenses. The IRS has developed certain allowances for housing, transportation, medical expenses etc. which may be deducted from your income. There are also additional IRS allowances based on taxes, insurance, child care, telecommunications, charitable contribution etc. In addition, your Conroe Bankruptcy Attorney may also subtract payments for secured loans such as mortgages, vehicles and other secured property. Priority debts such as child support and alimony may also be deducted from your income.

If You Fail the Means Test

You can fail the means test if after deducting all of the allowable expenses from your average current income you have approximately $100.00 or more available to pay creditors. Failing the means test creates a presumption that the case should not be eligible for Chapter 7. The U.S. Trustee will generally bring a motion to dismiss the case. The motion can be defended against by showing special circumstances. Special circumstances can be a reduction in income or job loss. Other special circumstances could be a long commute, high medical bills, student loan payments etc.

Get Help

Your Conroe Bankruptcy Attorney is here to help you get through the bankruptcy process and protect your rights to the fullest extent. Don’t let a mistake on the Means Test or another issue harm your pursuit of debt relief. Get help today.

LoneStarBankruptcy.com provides the latest news and information on Chapter 7 and Chapter 13 bankruptcy in the Southern District of Texas. The Federal Bankruptcy Court for the Southern District of Texas covers many communities including: Houston, Conroe, The Woodlands, Montgomery County, and Harris County. If you need legal assistance with a personal bankruptcy matter speak with a local bankruptcy attorney today.

What Is Your Current Monthly Income?

How Missing Credit Counseling Can Sink Your Case

Rich Shea — Sun, 24 May 2009 20:35:34 +0000

Not everyone can qualify for Bankruptcy protection in The Woodlands or the Southern District of Texas. It is true that anyone can file a bankruptcy petition; however, if your petition is defective or improperly prepared then your case is headed for dismissal and you will not be protected by the automatic stay that many people depend on. The Bankruptcy Code sets forth many requirements for beginning a bankruptcy case in Southern Texas. Today we will review the credit counseling requirement.

An individual must receive credit counseling from an approved nonprofit agency during the 180 days before filing a bankruptcy petition. If you want to meet this requirement and keep your case from being dismissed:

Do not submit a bankruptcy petition 181 days after credit counseling;
Do not skip credit counseling;
Do not plan to complete credit counseling after filing your petition.

The only exception to the requirement of completing credit counseling before qualifying for bankruptcy protection is if you can satisfy the court that you have exigent circumstances and the court approves a waiver.

If you fail to meet the credit counseling requirement, then you remain vulnerable to your creditors (and any time or money you spent preparing the petition would be a waste). The Bankruptcy Court for the Southern District of Texas has previously considered this provision of the bankruptcy code and has determined that cases with this flaw should be dismissed – leaving the petitioner with no bankruptcy protection.

This is an example of one of the mistakes a Woodlands Bankruptcy Attorney can help you avoid. When you need bankruptcy protection, get it done right the first time.

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Bankruptcy Exemptions: Home

Rich Shea — Sun, 15 Mar 2009 19:09:53 +0000

In every Woodlands Bankruptcy case there is a long list of “exempt property” that you are entitled to keep. In this post we will take a look at the most important exemption for many Woodlands Bankruptcy filers, the homestead exemption.

Put simply, Texas law protects your homestead with very few restrictions. There is no limit to the value of your home. Your Montgomery County Bankruptcy Attorney can protect your $500,000 home just the same as your $100,000 home in Bankruptcy.

There is a limitation on the actual size of your homestead that you can protect. If your home is located in an “urban” area (which is virtually very property except very rural locations) your home can not exceed 10 acres.

If you need the relief that only Bankruptcy can provide, speak with a Woodlands Bankruptcy Attorney today and get control over your debt.

The Purpose of Bankruptcy

Rich Shea — Sun, 01 Mar 2009 22:48:57 +0000

Bankruptcy laws in Conroe and Houston serve two main purposes. There is a balance between your right to cancel debt and get a new start vs. a creditor’s right to be paid.

First, the Conroe bankruptcy process gives you a fresh start be canceling many of your debts through a court order called a “discharge.” Second, bankruptcy law may give creditors some payment on their debts.

LoneStarBankruptcy.com is the source for information on Conroe and Houston Bankruptcy. Visitors can find a bankruptcy attorney to handle their case in any of the following areas: Houston, Harris County, Conroe, Montgomery County, Spring, and The Woodlands.

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