Personal Bankruptcy Questions

When you’re struggling to pay your bills and decide to declare bankruptcy in order to wipe out your debts, you might consider going through the process by yourself in order to save some money and embarrassment. You might figure that an attorney is an unnecessary expense and will simply add to your financial humiliation because you will have to tell all of your intimate financial details. However, a Texas bankruptcy attorney can be crucial to a successful filing.Why is having an attorney so important in Texas (or in any other state for that matter)? Well, you’ve probably heard something about the recent changes enacted by Congress in 2005. The new bankruptcy law contains some important changes such as a means test, which is a way that the bankruptcy court will try to determine whether you really need bankruptcy. There are also some other new requirements including mandatory credit counseling.

The thing is that this law is actually quite complex, and you really want to have a bankruptcy attorney help you understand all of its details (or at least as much of it as applies to your situation). In addition, there are some regulations in the bankruptcy code that may be applied differently depending on your state. For example, Texas has a strong homestead exemption that protects your primary place of residence from creditors in case you declare personal bankruptcy.

Regardless of the dollar value of your home, you will not have to surrender your house in order to pay for unsecured debts like credit card debts. You, of course, have to continue paying your mortgage bill or the bank can take your house. The point is that a Texas bankruptcy lawyer can help you sift through all of the seemingly incomprehensible details of the bankruptcy code so you can understand exactly what you need to. You can also know the particular laws of your state such as the homestead exemption.

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