To file Chapter 7 bankruptcy in Texas, the process generally involves the following key steps:
- Gather Required Documents: Collect important financial documents such as paystubs for the last 60 days, recent bank statements, tax returns for the past two years, bills, debt collection notices, and credit reports. These documents are necessary to accurately fill out bankruptcy forms that provide a snapshot of income, expenses, debts, and assets.
- Determine Eligibility: You must pass a "means test" to qualify for Chapter 7 bankruptcy. This test compares your income to the Texas median income for a household of your size. If below the median, you are eligible; if above, additional calculation of income and expenses is required.
- Complete Credit Counseling: Before filing, take a mandatory credit counseling course from an approved provider.
- Fill Out Bankruptcy Forms: Complete the official bankruptcy forms detailing your financial situation. These forms must be printed on white, letter-size paper, signed in ink, and are often prepared either by the filer or through an online aid tool like Upsolve.
- File Your Petition and Forms: Submit your bankruptcy petition and forms to the appropriate Texas bankruptcy court based on your location. The filing fee is typically around $338 but may be waived or paid in installments if you qualify.
- Notify the Trustee and Creditors: After filing, the court assigns a bankruptcy trustee who reviews your case. You must provide the trustee with documents such as bank statements, pay stubs, and tax returns at least seven days before your creditors' meeting.
- Attend the 341 Meeting of Creditors: This is a required meeting where the trustee and creditors can ask questions about your assets and liabilities.
- Receive Discharge: If all requirements are met and there are no objections, your eligible debts will be discharged, typically within four to six months from filing.
This process can be done without an attorney, especially for simpler cases, although legal advice can be beneficial.
These are the basic steps to file Chapter 7 bankruptcy in Texas. Let me know if detailed instructions on any specific step are needed.
