Consumer bankruptcy is filed when an individual can no longer take care of the obligations for individual needs. A consumer bankruptcy in Houston, TX would be under chapter 7 or chapter 13 of title 11 of the United States Code.
Under the new bankruptcy laws, you have to pass a means test to file Chapter 7 bankruptcy. If your current monthly income is lower than the adjusted median income in Texas, you automatically pass the means test. Otherwise, you have to pass a secondary means test that deducts expenses, such as vehicle loan payments and 401(k) contributions, to decide if you qualify. A bankruptcy lawyer can walk you through the process and see if you qualify.
Addressing both secured and unsecured creditors, we will likely secure our creditor clients’ privileges to the furthest extent possible. In particular, we address creditors in bankruptcy procedures documented under Chapters 7 and 13 of the United States Bankruptcy Code. We make every effort to optimize the collection against an account holder while limiting our clients’ financial risks.