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Texas Bankruptcy Questions & Answers
2 Answers | Asked in Bankruptcy for Texas on
Q: Credit union took $2k from new acct for bankruptcy discharged in 2001. Told no reason I couldn't rejoin then they did it
W. J. Winterstein Jr.
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W. J. Winterstein Jr.
answered on Sep 15, 2024

By federal law, further explained in Federal Regulations, a federally created credit union enjoys a lien upon all time and demand deposits of any member to secure any credit union loan to that member. The required disclosure to each member is in the pre-printed materials given to each new member... View More

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2 Answers | Asked in Bankruptcy for Texas on
Q: If I file chapter 7 can I exempt one or more unsecured credit cards if they are current?

I have one card that pays 1.5% rebate, and I pay off the balance each month. do i have to include it with the other debts?

W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
answered on Aug 30, 2024

You will have signed the Official Bankruptcy forms that ask you for all debts owed on the date of filing, under penalty of perjury, as of the date of your bankruptcy petition filing, as well as the Statement of Affairs, which ask about past payments of debt.

In addition, all credit card...
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2 Answers | Asked in Bankruptcy, Consumer Law, Contracts and Construction Law for Texas on
Q: What should I do if I paid a contractor 100% upfront and they have not done any work and they filed bankruptcy?

I paid a contractor 100% upfront. It's been 8 months and they have not done anything. Now I received notice they filed for bankruptcy. Upon further investigation, they have close to 200 creditors, less than $1M in assets and owe $10M. How can I either get them to do the work or give me my... View More

John Michael Frick
John Michael Frick
answered on Aug 21, 2024

Construction payments are trust funds if they are made to a contractor under a construction contract for the improvement of real property in Texas. The contractor is a trustee of those funds until they are earned as provided by the contract and paid or disbursed from the construction account. As... View More

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2 Answers | Asked in Bankruptcy for Texas on
Q: What does it mean when a person receives a letter from the Bankruptcy Court about a Chapter 11.

Also, what does it mean when you receive a letter from the United States Trustee Office of Estate Planning, about class claims.

James L. Arrasmith
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answered on Jul 27, 2024

When you receive a letter from the Bankruptcy Court about a Chapter 11, it typically means that a company or individual you have a financial relationship with has filed for reorganization bankruptcy. This type of bankruptcy allows them to restructure their debts while continuing their operations.... View More

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1 Answer | Asked in Bankruptcy and Collections for Texas on
Q: I have a default judgment and the bench hearing is tomorrow. Should I negotiate and pay before the hearing tomorrow?

I was on a payment plan with portfolio recovery but missed a payment or two because my debit card was hacked and forgot to update my account. The immediately sued me after.

James L. Arrasmith
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answered on Jun 9, 2024

It's understandable that you’re in a difficult situation right now. If you have a bench hearing tomorrow, it’s crucial to weigh your options carefully. Negotiating and paying the debt before the hearing could show good faith and potentially influence the court's decision positively.... View More

3 Answers | Asked in Bankruptcy for Texas on
Q: Can I get free legal aid to file bankruptcy. I live in jasper texas
Martha Warriner Jarrett
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answered on May 25, 2024

You will have to contact your local Legal Aid office and ask them. Some help you prepare and filed your own bankruptcy case. Others do not offer any help with bankruptcy filings. Also check out your local Bankruptcy Court's website (us.courts.gov) to see what free legal help is available in... View More

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3 Answers | Asked in Bankruptcy for Texas on
Q: Can I get free legal aid to file bankruptcy. I live in jasper texas
James L. Arrasmith
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answered on May 24, 2024

Yes, you can find free legal aid to file for bankruptcy in Jasper, Texas. Start by contacting Lone Star Legal Aid, which provides free legal assistance to low-income residents in your area. They can help you understand the bankruptcy process and determine if you qualify for their services.... View More

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2 Answers | Asked in Bankruptcy for Texas on
Q: Can I redeem my repossessed vehicle by filing chapter 13 bankruptcy?
James L. Arrasmith
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answered on May 1, 2024

Yes, you can potentially redeem your repossessed vehicle by filing for Chapter 13 bankruptcy. This process allows you to reorganize your debts and can include a plan to catch up on past due payments for items like your car. In a Chapter 13 bankruptcy, you propose a repayment plan to make... View More

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2 Answers | Asked in Bankruptcy for Texas on
Q: Can I redeem my repossessed vehicle by filing chapter 13 bankruptcy?
W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
answered on Apr 29, 2024

In large part, the Bankruptcy Code accommodates applicable State law with respect to whatever property rights have been created as of the bankruptcy filing date.

So your first stop is your written agreement with dealer/lender with whom you have had a car loan. If you have a right to...
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2 Answers | Asked in Bankruptcy for Texas on
Q: Is there a template for an order accompaning a motion for extension of time in a chapter 13 case in Texas
James L. Arrasmith
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answered on Apr 16, 2024

Yes, there is a general template for an order accompanying a motion for extension of time in a Chapter 13 bankruptcy case in Texas. Here's a sample:

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE [NORTHERN/SOUTHERN/EASTERN/WESTERN] DISTRICT OF TEXAS

[DIVISION]

In...
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2 Answers | Asked in Bankruptcy for Texas on
Q: Is there a template for an order accompaning a motion for extension of time in a chapter 13 case in Texas
W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
answered on Apr 15, 2024

Without first checking myself, my best guess is probably not, but to be sure, go online to the website of the federal district where you're located, and it should list "Forms". Under that heading, go to "local forms", and check out what's shown there.... View More

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3 Answers | Asked in Bankruptcy for Texas on
Q: Is VA disability income or social security income add into income determining means test?

We have about $59k in unsecured credit card debt we can't pay on. Also have t filed 2023 taxes yet will be doing that this weekend will owe!! Does our Ss income and VA disability income need to be included in means test?

James L. Arrasmith
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answered on Mar 29, 2024

When facing financial difficulties, especially with a significant amount of unsecured debt, understanding what income must be included in the means test for bankruptcy can be crucial. The means test is designed to determine eligibility for Chapter 7 bankruptcy, which can discharge many types of... View More

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2 Answers | Asked in Bankruptcy and Foreclosure for Texas on
Q: I need to know how to stop a writ of possession that hasn't been served
John Michael Frick
John Michael Frick
answered on Mar 19, 2024

A writ of possession may be stayed by timely appealing the case to the county court or by filing a supersedeas bond within ten days from the date of judgment in the county court.

Once a judgment for eviction has been granted, even filing bankruptcy will not stop a writ of possession from...
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2 Answers | Asked in Bankruptcy and Foreclosure for Texas on
Q: I need to know how to stop a writ of possession that hasn't been served
James L. Arrasmith
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answered on Mar 19, 2024

If you're facing a writ of possession that hasn't yet been served, it's crucial to act quickly. First, you should review the details of the eviction notice or court decision leading to the writ. Understanding the basis of the action can help you identify any possible errors or... View More

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3 Answers | Asked in Bankruptcy for Texas on
Q: I have a judgement of over $46,000 The debtor has an exempt real estate asset yet filed chapter 13

He is not passed due on other creditors , he simply doesn't want to sale this asset worth 175 K + and filed chapter 13 it is not his homestead it is an inherited house and 1.28 acres. When the court ordered the judgment he transferred the deed to his wife when he learned that is illegal he... View More

W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
answered on Mar 15, 2024

You seem to describe an argument simply between two persons, a debtor and a creditor.

There are ample cases on the books that say that such a case serves no bankruptcy purposes and should be dismissed. The US Trustee likewise appears to dislike such cases, and often files a Motion to...
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3 Answers | Asked in Bankruptcy for Texas on
Q: I have a judgement of over $46,000 The debtor has an exempt real estate asset yet filed chapter 13

He is not passed due on other creditors , he simply doesn't want to sale this asset worth 175 K + and filed chapter 13 it is not his homestead it is an inherited house and 1.28 acres. When the court ordered the judgment he transferred the deed to his wife when he learned that is illegal he... View More

James L. Arrasmith
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answered on Mar 16, 2024

Given the complexity of your situation, it's crucial to consult with an attorney experienced in bankruptcy and debt collection laws. They can guide you through the specific challenges of dealing with debtors who declare Chapter 13 bankruptcy, especially when there are actions that might be... View More

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1 Answer | Asked in Bankruptcy for Texas on
Q: Need to file chapter 13 but can only afford payments
James L. Arrasmith
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answered on Mar 13, 2024

I understand you are considering filing for Chapter 13 bankruptcy but are concerned about being able to afford the payments. Here is some information that may be helpful:

• Chapter 13 bankruptcy allows you to reorganize and repay debts over 3-5 years. You make monthly payments to a...
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1 Answer | Asked in Bankruptcy for Texas on
Q: Vehicle repossessed after failed bankruptcy, possible to recover?

Hello,

Due to financial hardship, my Chapter 13 bankruptcy was dismissed with prejudice and my vehicle has been repossessed. It's probably not possible but are there any last resorts I could explore to get my vehicle back? Thank you for your time.

James L. Arrasmith
PREMIUM
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answered on Mar 13, 2024

I'm sorry to hear about your financial hardship and the repossession of your vehicle. While it may be challenging to recover your vehicle after a dismissed Chapter 13 bankruptcy, there are a few potential options you could explore:

1. Redemption: You may be able to redeem your vehicle...
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3 Answers | Asked in Bankruptcy for Texas on
Q: Should I go ahead and file a proof of claim or should I wait to see what the trustee is going to do?

The chapter 13 trustee is aware that I was intentionally left off the creditor’s list and appears to be planning to take action since he has hired a trial attorney for the case. Should I go ahead and file my proof of claim (potentially tipping off the debtor) or should I wait to see what action... View More

James L. Arrasmith
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answered on Mar 4, 2024

In a Chapter 13 bankruptcy case, filing a proof of claim is an essential step for creditors wishing to receive distributions from the debtor's repayment plan. If you were intentionally left off the creditor's list, your proactive approach in protecting your interests is understandable.... View More

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3 Answers | Asked in Bankruptcy for Texas on
Q: Should I go ahead and file a proof of claim or should I wait to see what the trustee is going to do?

The chapter 13 trustee is aware that I was intentionally left off the creditor’s list and appears to be planning to take action since he has hired a trial attorney for the case. Should I go ahead and file my proof of claim (potentially tipping off the debtor) or should I wait to see what action... View More

W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
answered on Mar 1, 2024

Without question, honesty is the best policy in any Court, and the Bankruptcy Court in particular.

The benefit, if any, to an omitted (from the Debtor's filings) creditor is that its debt/claim is not going to be discharged, UNLESS that creditor knew or should have known of the...
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