People often fear the idea of filing for bankruptcy in Texas because they are operating under myths and misconceptions. The fact is, there is a lot about Texas bankruptcy that most people don’t know.
To help you make a more informed decision, Fears | Nachawati – a team of experienced Texas bankruptcy attorneys – has put together this list of five of the most surprising secrets about bankruptcy:
1. You may be able to keep most, if not all, of your property: Texas bankruptcy law allows you to choose between Texas state exemptions and federal exemptions. These exemptions allow you to keep a good deal, if not all, of your property when you file for bankruptcy. For example, in Texas, you may be able to keep your car, home, household goods, jewelry and retirement savings, among other things.
2. There is no minimum amount of debt necessary to file for bankruptcy in Texas: No law, in Texas or elsewhere, exists that dictates the amount of money you must owe in order to file for bankruptcy. Bankruptcy laws were designed to help out individuals who are unable to pay their existing debts. Whether or not you can file for Chapter 7 bankruptcy in Texas is a matter of evaluating your debts, assets and income.
3. It is possible to get credit after bankruptcy: Because bankruptcy does negatively affect your credit for a time and does remain on your credit report for up to 10 years, many people understandably but mistakenly believe that they will never be able to obtain credit again if they file for bankruptcy in Texas. However, the reality is that you will be able to get credit within a relatively short time after you file for bankruptcy. You will, for instance, be able to get secured credit cards that will improve your credit score. You might even be able to get a mortgage within as little as two years after filing for Texas bankruptcy.
4. Your employer will not be notified of your bankruptcy: While it is true that bankruptcy records are public, there is little chance that your employer will find out about your bankruptcy. No one from the bankruptcy court will notify your employer of your bankruptcy. The only people who will know about your Texas bankruptcy are your creditors and the people that you choose to tell.
5. Your spouse is not required to file for bankruptcy with you: There is absolutely no legal requirement that you and your spouse file jointly for bankruptcy in Texas. One spouse can file for bankruptcy without the other. The effect that your bankruptcy will have on your spouse’s assets and liabilities is a question that can be answered by a qualified Texas bankruptcy attorney.