If you or someone you know is going through bankruptcy or is considering filing bankruptcy, you should ask for the help of an Arlington bankruptcy lawyer. A lawyer can help review your case and determine the necessary next steps. Additionally, a lawyer can help answer any legal questions you may have about bankruptcy. For example, a good question to ask is, do they freeze your bank account when you file Chapter 7 in Texas?
Chapter 7 bankruptcy is also known as liquidation bankruptcy. It is a legal process that helps people dismiss many of their debts. If you cannot make your regular monthly payments on your debts, Chapter 7 bankruptcy may be right for you.
The process usually starts with a trustee. The court will appoint a trustee to take over certain assets and sell them to creditors. There may be certain assets that are exempt from liquidation, but all other assets will likely be liquidated to meet debt obligations. Most unsecured debt can be discharged. These could be credit cards, personal loans, or medical bills. Certain debts like student loans, child support, or tax obligations will likely not be discharged.
Texas does allow bank accounts to be frozen during a Chapter 7 bankruptcy filing. This may be done to preserve the funds in the account for creditors. One example where your bank account may be frozen is if you have a checking account with the same financial institution in which you also have a loan.
Banks maintain the right to setoff. A setoff is a provision that grants the bank the ability to seize the funds you hold with them and apply them toward any debt or loan balances that you owe. While the bankruptcy proceeding is ongoing, the bank may choose to freeze your account completely.
There are two main options to avoid having your account frozen. The first option is to notify your creditor of your intention to file bankruptcy and request a cease to all automatic payments from your bank account. The second option is to relocate your funds to another bank with which you have no debt. The second option is usually the more effective one.
A: There are some debts that will not be discharged in Chapter 7 bankruptcy. These can include child support debt, alimony, certain taxes, and debts for willful and malicious injuries to a person or property. Additionally, any debts not listed on the schedule set forth by the debtor and filed with the court may not be discharged. Each bankruptcy case is unique in its own way, and the list of debts not being discharged could change from case to case.
A: The cost of a bankruptcy lawyer in Texas can vary depending on the circumstances of the case. There are several important factors to consider. For example, the fee structure of the attorney will be important. Some attorneys charge an hourly fee, and some charge a flat fee for their services. Additionally, you must consider the attorney's location and experience level.
A final factor is the complexity of the bankruptcy case. Usually, the more complex the case, the more expensive.
A: You must wait at least eight years from your bankruptcy filing date before you can file for bankruptcy again. This waiting period may not apply in certain circumstances. For example, if your case was dismissed or your debts were not discharged, you may not have to wait as long as you obey all court orders and show up for all court appearances. You should contact a qualified bankruptcy lawyer for further details about the waiting period.
A: While filing for Chapter 7 bankruptcy can severely damage your credit score, it will not destroy your credit forever. Filing bankruptcy will remain on your credit report for 7-10 years. While it will remain on your credit report, there are ways you can positively build your credit back up in the meantime. For example, your credit score can recover if you keep your credit card balances low and make payments on time. Chapter 7 Bankruptcy does not permanently destroy your credit.
A: You may not have to give up all your assets if you file Chapter 7 bankruptcy in Texas. Assets like your homestead, personal property, and retirement accounts can be exempt in most cases. There are other exemptions that you may be eligible for, and you should discuss them with an experienced bankruptcy lawyer. If you have concerns about giving up assets after bankruptcy, a lawyer can help you explore possible strategies and ways to protect them.
Bankruptcy proceedings can be complicated matters. It can be difficult to fully understand how to navigate them and your legal options without a legal professional's help. Bankruptcy can seem intimidating, but it may be necessary under the right conditions. A lawyer can be a great resource to use if you are going through bankruptcy. For example, if your bank account is frozen, you should consult with a lawyer to help you understand your legal options.
At the Steele Law Firm, PLLC, our legal team is ready and willing to help you during this time. We have a demonstrated history of helping individuals all across Texas with their bankruptcy cases. We pride ourselves on serving the Texas community and can help you explore every legal avenue available to find the right solution.
If you are going through or expecting to go through bankruptcy, don’t wait. Contact us today at our office, conveniently located in Fort Worth. We can schedule a consultation with you to discuss how we can help you.
