“I’M IN CHAPTER 13 BANKRUPTCY. WHAT HAPPENS TO MY TAX REFUND?”

The rules affecting what happens to Chapter 13 debtor’s tax refunds while they are in bankruptcy differ depending on where the case is filed.  These rules are generally set out in the local rules of the court or a general order. In the Eastern District of Texas, the Chapter 13 Trustee will allow a debtor […]

AUTOMATIC STAY APPLIES TO DALLAS BANKRUPTCY ATTORNEYS TOO

When I meet with a client, usually one of the first topics they want to discuss is how much is bankruptcy going to cost them and how are they going to pay their attorney’s fees.  Understandably this is a concern, because if money wasn’t tight they wouldn’t be seeking the help of a bankruptcy attorney.  […]

BANKRUPTCY: CREDIT COUNSELING AND DEBTOR EDUCATION

The Bankruptcy Code requires that all individuals filing bankruptcy receive credit counseling before their case is filed.  Credit counseling must be provided by an agency approved by the Department of Justice’s U.S. Trustee Program.  These agencies will charge a fee of around $50.  Upon completion of the course, debtors receive a certificate of completion.  This […]

BANKRUPTCY: CROSS-COLLATERALIZATION AND CREDIT UNIONS

In bankruptcy, debtors often wish to discharge their unsecured debt but keep their secured collateral.  This is generally allowed in bankruptcy, but a practice commonly employed by credit unions makes this process more complicated and often more expensive.  The reason is because credit unions often include cross-collateralization clauses in their loan documents.  Cross-collateralization means that […]

BANKRUPTCY: JOINT DEBTOR VS. CO-DEBTOR

These two very similar sounding terms have very different meanings. The term joint debtor describes the second person listed on a bankruptcy petition when a married couple files bankruptcy.  The first person listed on a bankruptcy petition is the debtor.  There is no rule in the Bankruptcy Code that states either the husband or wife […]