You may make a good income, but are unable to afford your debts, so you are looking at a Chapter 13 bankruptcy Texas. Your income and the affordability of your Chapter 13 plan payment is an important aspect of a Texas Chapter 13 bankruptcy. In this article, our goal is that you understand everything about Texas Chapter 13 bankruptcy filings.
This article highlights some crucial aspects of a Chapter 13 bankruptcy in Texas. You might be wondering why we are specifically looking at Chapter 13 bankruptcy in Texas. The reason is that while there are nation-specific aspects to bankruptcy, there are also many aspects specific to each state as well. For more information on nation-specific aspects, you can check out our article on Chapter 13 bankruptcy.
Chapter 13 Verses Chapter 7 Bankruptcy
As far as Texas-specific information is concerned, it is better to first learn a few details about Chapter 13 bankruptcy. Also, it is vital to know some of the main differences between a Chapter 13 bankruptcy and a Chapter 7 bankruptcy.
Chapter 13 Bankruptcy in Texas
Some refer to Chapter 13 Bankruptcy as the ‘wage earners bankruptcy.’ This chapter is where debtors offset their loans through an installment repayment process, mostly with the assistance of their lawyers. This plan can last from three years to five years, and it is submitted monthly. Some people earn lots of money that hinders them from filing for Chapter 7, while others possess valuable possessions. These are some of the reasons why they are more eligible for Chapter 13 rather than Chapter 7.
Chapter 7 Bankruptcy in Texas
A Chapter 7 Bankruptcy is also known as a ‘liquidation bankruptcy.’ This kind of arrangement is handy when debtors can’t pay their debts, forcing them to enter this bankruptcy to be released from their obligation. A Chapter 7 can be completed in as little as four months and it is less costly, but you have to be eligible. You can use our calculator shown below to estimate a Chapter 13 payment agreement and also determine if you qualify for Chapter 7.
Calculating Chapter 13 Plan Payments in Texas
Your Chapter 13 plan payment is based on your unique financial situation. The Chapter 13 bankruptcy Texas payment plan estimate factors in the IRS National expense figures, plus particular Texas expenses. In many cases, debtors are always interested to know whether they are suitable candidates for Chapter 7 and what kind of payment plan they will have in Chapter 13. If you decide to estimate a highly accurate Chapter 13 bankruptcy payment plan personally, you will find it difficult because of the intricate bankruptcy forms involved. To help, we have our calculator to determine if you are qualified to file a Chapter 7 and assist in estimating your payment package in case you do choose a Chapter 13 bankruptcy.
Texas Means Testing
You may be wondering what goes into the Chapter 7 Means Test in Texas. The test considers Texas means testing data to give an estimate of whether someone is eligible for a Chapter 7. Also, we have included information for the Texas Means Test Data from November 1st, 2020 inclusive in the table below. Please note that for families with more than 9 people in the household, you would add $9,000 for each additional household member.
| # of People | Annual Income |
|---|---|
| 1 | $52,308 |
| 2 | $70,418 |
| 3 | $76,170 |
| 4 | $88,109 |
| 5 | $97,109 |
| 6 | $106,109 |
| 7 | $115,109 |
| 8 | $124,109 |
| 9 | $133,109 |
Texas Bankruptcy Exemptions
Before filing for Chapter 13, you have to consider ownership of any assets above the exemptions. Although you might be eligible for a Chapter 7, having an equity position in assets makes filing for a Chapter 13 or debt settlement the better choice.
Texas has particular statutes and bankruptcy exemptions that should be factored in before filing for bankruptcy. If your assets are above the Texas exemptions, they could face liquidation. You can see below the highly common Texas bankruptcy exemptions, but the entire list can be found here.
Texas Chapter 13 Bankruptcy Trustees
It is the responsibility of the trustee to administer the bankruptcy case and liquidate the debtor’s nonexempt assets. You will find that Chapter 7 trustees are many, but Chapter 13 trustees are scarce. You can find the full list of Chapter 13 bankruptcy trustees in Texas here.
| District | Name | Phone |
|---|---|---|
| Eastern | Carey Ebert | (972) 943-2580 |
| Eastern | Lloyd T Kraus | (903) 593-7777 |
| Eastern | Chapter 13 Standing Trustee | (903) 594-7115 |
| Northern | Pamela A. Bassel | (817) 916-4710 |
| Northern | Lloyd T Kraus | (903) 593-7777 |
| Northern | Thomas D. Powers | (214)855-9200 |
| Northern | Tim Truman | (817) 770-8500 |
| Northern | Robert B. Wilson | (806)740-0114 |
| Southern | Cindy Boudloche | (361)883-5786 |
| Southern | William Heitkamp | (713)722-1200 |
| Southern | David G. Peake | (713)283-5400 |
| Western | Stuart C. Cox | (915)598-7674 |
| Western | G. Ray Hendren, Jr. | (512) 474-6309 |
| Western | Deborah B. Langehennig | (512) 912-0305 |
| Western | Gary W. Norwood | (432)686-9452 |
| Western | Mary Kathryn Viegelahn | (210) 824-1460 |
Texas Bankruptcy Districts and Court Locations
You will find 4 bankruptcy districts in Texas: Northern, Western, Eastern, and Southern. The following is a map of the Texas districts from the US bankruptcy courts (Source: Texas Almanac)
Now that you are knowledgeable regarding the districts let’s look at the specific courts you can go to for a Chapter 13 Bankruptcy in Texas. Below is the court websites that by the district above.
- Northern District of Texas Bankruptcy Courts
- Eastern District of Texas Bankruptcy Courts
- Western District of Texas Bankruptcy Courts
- Southern District of Texas Bankruptcy Courts
Should I pursue a Chapter 13 Bankruptcy in Texas?
In Texas, a Chapter 13 bankruptcy is an accepted option for people facing debt hardships and aren’t eligible or don’t want to pursue a Chapter 7. You can also look at other options and their cons and pros, including debt management and debt settlement. Our Chapter 13 Calculator compares the choices and provides the benefits and drawbacks and will estimate your Chapter 13 Repayment Plan. Therefore, you can use the calculator to conduct personal research or as a resource. Debt can be a source of continual stress, and we believe that this article will be instrumental in assisting you to become debt-free.
Finally, if you would like to watch a summary of a Texas Chapter 13 bankruptcy, you may want to view the video below.
