The threshold value that distinguishes the collectible from the non-collectible can differ by state. But this doesn’t mean that you should only pack up your things to enjoy the rewards and move to Texas. There are conditions for residence that the debtor must meet. For more information on this you can consult with a credible Texas bankruptcy lawyer.
Be mindful that the filing of Chapter 7 would not only erase and every one of your financial obligations. Have a look at Living Trusts-Colleen Marie & Associates to get more info on this.
There are also obligations for debtors that must be taken over at the time of filing. Alimony and child care, as well as student loans, cannot be dismissed, however some income conditions can protect the Texas trustees from taking any of this money from you. As far as mortgage or other loan containing collateral goes, if the debtor plans to hold the particular piece of land, these payments are not dismissed. Any debt accrued after you have declared bankruptcy often does not count, so be careful when you file so that in the future you can stop accruing further debt You won’t be eligible to apply for a Chapter 7 bankruptcy if your income or assets increase above a certain amount. In this situation, a Chapter 13 insolvency is filed instead. This is determined not only by what state or city you live in but your personal zip code also comes down to it. Since these stipulations do not affect many Texans filing for bankruptcy, your salary won’t deter you from filing for bankruptcy. You will not forfeit all of your properties to creditors in Chapter 13, but none of your debts will be washed out immediately. Instead, based on what you can afford to pay, you are expected to determine a realistic payment plan for the next few years. There are four separate bankruptcy districts in Texas alone, and each county is allocated to one. You must provide the judge of your assigned district with evidence that you have the revenue to fulfil the payment plan specifications that you have built, and only then will you be accepted or rejected. Bear in mind, things are changing rapidly at the federal level, as well as within Texas, so you can benefit greatly from keeping up to date on the changes with a Texas attorney.