If you’re hesitating to file for bankruptcy because you’re concerned that doing so will cause you to lose your property, it’s important to speak with an experienced Garland bankruptcy lawyer whom residents trust, who can clarify the realities of “liquidation bankruptcy.” Yes, trustees assigned to Chapter 7 bankruptcy cases are empowered to sell a filer’s non-exempt property so that they can forward the proceeds of that sale to the filer’s creditors. However, Texas has
some of the most generous bankruptcy exemptions in the U.S. As a result, most low-income filers don’t have to worry about losing much (if any) of their property when seeking debt relief. Our firm’s bankruptcy lawyer team can explain what property and assets (if any) you are at risk of losing if you file for Chapter 7 bankruptcy.
Exempt Assets for State Filers
Unlike most states, Texas allows filers to exempt the total value of their home and the total value of one vehicle per licensed household member. This reality stands in stark contrast to most states, in which filers can only exempt a few thousand dollars of equity in a single vehicle, and the value of home equity is subject to significant caps. Texas also permits the exemption of most retirement assets, public benefits, insurance benefits, and health savings accounts. Additionally, Texas filers can exempt their food, clothing, pets, a certain amount of livestock, burial plots, a significant amount of jewelry, Bibles, home furnishings, athletic equipment, and a limited number of firearms. Texans also benefit from a generous “wildcard exemption” that protects the property of a filer’s choice up to a certain value. Chances are that if you’re eligible to file for Chapter 7 bankruptcy, Texas exemptions will safeguard most, if not all, of what you own. To learn more about state bankruptcy exemptions, contact a Garland attorney from our firm.
How to Repair Your Credit After Bankruptcy
If you’ve filed for bankruptcy in Garland with the help of a bankruptcy lawyer, you likely feel a sigh of relief. You’re finally free from your debt and can start over. However, you may be worried about your credit rating taking a hit. Here are a few ways to repair your credit.
- Make Your Payments On Time: One of the most basic ways to repair your credit score is to pay your bills on time every month. Remember to continue paying the debts that weren’t discharged during your bankruptcy, such as student loans. If you have trouble remembering to pay your bills on time every month, consider setting up automatic payments.
- Create a Budget: In order to pay back what you still owe and avoid late payments, you have to be on a strict budget. Instead of spending money on things that aren’t a necessity, put that money towards your bills. Take a look at your current expenses and see if you can cut anything out. For example, you might not really need to pay for cable if you have Netflix. You can also cook at home instead of going out to eat.
- Get a Secured Credit Card: Applying for traditional credit cards and loans will be trickier after you file for bankruptcy. That’s why you should consider getting a secured credit card for the time being. This credit card requires you to pay a deposit, and the credit card limit is the amount of that deposit. If you use this credit card and pay off your balance in full every month, your credit rating should improve over time.
- Check Your Credit Score: It’s a good idea to check your credit score about once a month. This way, you can keep track of your progress and see if what you’re doing is working or not.
- Keep Your Credit Card Balances Low: After you get approved for another credit card, you should try to keep the utilization rate less than 30 percent. If you have a low utilization rate, you will show lenders that you aren’t dependent on credit and have a good handle on your finances.
How Long Does It Take to Repair Your Credit?
How long it takes to repair your credit will depend on the type of bankruptcy you file. Chapter 7 bankruptcy stays on your credit report for 10 years, while Chapter 13 stays on your report for seven years. However, you can start to rebuild your credit right after you file for bankruptcy. With a little hard work, you may be able to significantly improve your score within a year or two. Our bankruptcy attorneys can give you tips on how to rebuild your credit in Garland and answer any questions you may have.
Reach Out to a Garland Bankruptcy Attorney
Many people feel anxious about filing for bankruptcy because they are concerned that they will lose all of their hard-earned property, valuable assets, and sentimental possessions. If you’re feeling anxious, it’s important to remember two things if you’re thinking about filing for bankruptcy in Texas. First, Texas has some of the most generous exemptions in the nation. Second, most low-income filers who are eligible to file for Chapter 7 bankruptcy – even if they don’t live in Texas – are able to exempt most or all of their property. Exemption laws are usually generous enough that low-income filers (who don’t own unusually significant luxury property) don’t have much to worry about when it comes to the concept of “liquidation bankruptcy.”
Finally, please keep in mind that the experienced legal team at The Allmand Law Firm, PLLC takes great pride in helping our clients retain ownership of their hard-earned property, assets, and benefits. When you work with our firm, you can rest assured that we will apply every exemption available to ensure that you get to benefit from the fresh start that bankruptcy provides while retaining ownership of as much of your property as possible. Please call today to speak with an experienced Garland bankruptcy lawyer at our firm in a confidential setting; we look forward to speaking with you.
