While there is not any minimum and there is also no maximum amount of debt to file bankruptcy, there is an audit and review process established and enacted by the US Trustee’s office in order to monitor bankruptcies for fraud as well as to make sure that they are filed in good faith. Any good bankruptcy lawyer would carefully review for chances of a bad faith filing rejection.
Some debts could survive your filing of bankruptcy, like student loans, IRS debt, as well as support obligations like spousal, child, or alimony support. If you have lived in Texas for two years before filing bankruptcy, you can exempt certain assets like clothes, household furniture, heirlooms, as well as cash in some situations. The exemptions for a wild card in Texas are $10,000 per individual or if a couple is filing jointly it is $20,000 when married. Additional exemptions could be available which an attorney could further help you with, in order to maximize exemptions along with minimizing your financial risk.
Once your bankruptcy case is filed, about 4-8 weeks later comes a “341 Meeting” in which you will with your attorney and a trustee.
This creditor meeting provides creditors and the Trustee with an opportunity for you to discuss the case under oath as well as to confirm details contained within your bankruptcy petition schedules. The attorney whom you hire would generally review this meeting with you. And typically this meeting is nothing to fear. It is not in a court room but rather at a desk or table in a trustee’s office. After a Chapter 7 bankruptcy has been completely discharged, the debtor may not file Chapter 7 bankruptcy for a period of 8 years. Chapter 13 is still available within that time, as long as at least 4 years have passed since the filing date of the chapter 7 bankruptcy.
See that you carefully look over your situation with an attorney from Texas to learn whether a ch 13 bankruptcy could be just what you need.