What is Bankruptcy?
A federal legal proceeding that gives people who can't pay their bills a real fresh start, with immediate protection from creditors.
A legal fresh start, governed by federal law.
Bankruptcy is a legal proceeding for people who cannot pay their bills and need a fresh financial start. The right to file is provided by federal law, and every case is handled in federal court.
Filing bankruptcy immediately stops your creditors from trying to collect, at least until your debts are sorted out according to the law.
What bankruptcy can and cannot do.
- Eliminate your legal obligation to pay most or all of your debts (a discharge)
- Stop foreclosure on your home and let you catch up on missed payments
- Prevent vehicle repossession, or in some cases force the return of property already taken
- Stop wage garnishment and creditor harassment
- Restore or prevent termination of utility service
- Challenge creditors who have committed fraud or are trying to collect more than you owe
- Eliminate the rights of secured creditors. You generally keep paying to keep the collateral.
- Discharge child support, alimony, most divorce-related debts, most student loans, criminal fines, and certain taxes
- Protect cosigners on your debts in a Chapter 7 case
- Discharge debts that arise after the bankruptcy is filed
In most cases, you keep what matters.
In most cases you will not lose your home or car during bankruptcy as long as your equity is fully exempt. Even if it isn't, Chapter 13 lets you keep the property by paying its non-exempt value to creditors over time.
Secured creditors such as mortgage holders and auto lenders keep their security interests through bankruptcy. To keep the property, you generally keep paying the loan, or pay the creditor what the property is worth.
A real fresh start, not a life sentence.
You keep your exempt property and anything you obtain after the case is filed. Most clients see their credit recover within 12 to 24 months, even though the filing can appear on a credit report for up to ten years.
Utilities cannot refuse service, employers and government agencies cannot discriminate against you, and you may even regain a driver's license lost solely to unpaid court-ordered accident damages.
Which chapter is right for you?
Most individuals file under Chapter 7 or Chapter 13. Either can be filed individually or jointly by a married couple. If your income is above the Texas median, a "means test" may direct you to Chapter 13.
Sometimes called "straight bankruptcy." You give up non-exempt property (in most cases everything is exempt) in exchange for a discharge of qualifying debts. Filing fee: $299.
A 3 to 5 year plan to pay debts (or parts of debts) from current income. Designed to let you keep valuable property like a home or car. Filing fee: $274.
Used by businesses and a small number of high-debt individuals to reorganize obligations under court supervision while continuing operations.
A reorganization built specifically for family farmers and fishermen, with rules tailored to seasonal income and agricultural assets.
Federal exemptions, at a glance.
In a Chapter 7 case, you keep all property the law calls "exempt." You can choose between Texas state exemptions or federal exemptions, and in many cases the federal numbers are better. Amounts double for married couples filing together.
Value is what the property is worth today, not what you paid. Exemptions apply to your equity, full value minus mortgages and liens.
A few required steps, done right.
The law requires credit counseling before filing and a personal finance course after. Both are quick, but the agency you choose matters.
- Receive budget and credit counseling from an approved agency within 180 days before filing
- File a certificate from the agency with your bankruptcy forms
- Carefully choose your counseling agency. Approved status alone is not a guarantee of quality.
- Be cautious about debt management plans that pressure you to avoid bankruptcy regardless of fit
What to expect, and what comes next.
- Attend the meeting of creditors with the trustee. Usually short and straightforward.
- Complete an approved personal finance course (about two hours) after filing
- Appear at a court hearing only if a dispute arises. Your attorney will give you notice.
Answers to the questions we hear most.
Real clients. Real fresh starts.
"Mr. Max and his assistant Tami were very helpful, knowledgeable and friendly. Before I started my case I reached out to other lawyers — none of them gave me the information I needed to make the right decision. Tarbox Law gave me the time, listened to my concerns, and made the process easy. They took a huge weight off my shoulders. Thank you so very much, Mr. Max and Tami."
"Dear Mr. Tarbox and staff — thank you for your help and support during this difficult time in my life. I truly appreciate the generosity of time you and your staff gave to my case. I am humble and grateful. Lord bless you and your staff mightily!"
"Max is a great attorney. Very personable and truly cares about your case. You can't go wrong hiring Max to represent you in your bankruptcy case. He has a great staff also."
"The respect and wonderful service I received here is why I will be referring people to them in the future! To Mr. Tarbox, Ms. Pagendarm and their amazing staff — thank you so much!"
"Great lawyer and man. Very concerned about your legal problem and goes the extra mile to help! If you need help on a bankruptcy you can't go wrong here!"
"Really fast paced. They get stuff done fast, and the price was pretty reasonable as well — not too high."
"Mr. Max and his assistant Tami were very helpful, knowledgeable and friendly. Before I started my case I reached out to other lawyers — none of them gave me the information I needed to make the right decision. Tarbox Law gave me the time, listened to my concerns, and made the process easy. They took a huge weight off my shoulders. Thank you so very much, Mr. Max and Tami."
"Dear Mr. Tarbox and staff — thank you for your help and support during this difficult time in my life. I truly appreciate the generosity of time you and your staff gave to my case. I am humble and grateful. Lord bless you and your staff mightily!"
"Max is a great attorney. Very personable and truly cares about your case. You can't go wrong hiring Max to represent you in your bankruptcy case. He has a great staff also."
"The respect and wonderful service I received here is why I will be referring people to them in the future! To Mr. Tarbox, Ms. Pagendarm and their amazing staff — thank you so much!"
"Great lawyer and man. Very concerned about your legal problem and goes the extra mile to help! If you need help on a bankruptcy you can't go wrong here!"
"Really fast paced. They get stuff done fast, and the price was pretty reasonable as well — not too high."
The law often changes and each case is different. The information above is general and not a substitute for legal advice.
Your first conversation is free, confidential, and with the attorney himself.
No call centers, no intake screeners. Max personally reviews every case from the very first call.
