Debtors who are having their bank accounts or wages garnished may be able to stop garnishment by filing bankruptcy. Whether the garnishment can be stopped depends on the reason for the garnishment. Garnishments due to collection of judgments, collection of student loan debt, tax liability, and arrears due to domestic support obligations can all be […]
NORTH TEXAS BANKRUPTCY: TEMPORARY WAIVER OF CREDIT COUNSELING REQUIREMENT
Before a debtor can file bankruptcy they must complete a prebankruptcy credit counseling course. This course must have been completed within the 180-day period prior to the filing of the bankruptcy petition. Failure to comply with the credit counseling requirement can result in an order striking the petition, which results in no bankruptcy case being […]
TEXAS BANKRUPTCY: YOU DON’T HAVE TO BE INSOLVENT
I received an email from a client recently asking if she needed to be “broke” before filing bankruptcy. I have never been asked this question before, and I am surprised, because it is a very good question. The Bankruptcy Code doesn’t require you to be insolvent in order to be eligible to file bankruptcy. Actually, […]
UTILITY SERVICES AFTER FILING BANKRUPTCY
My clients often ask me if their utilities will be cut off after unpaid bills to these companies are discharged in bankruptcy. For most of us, loss of electricity and water services would be devastating. This issue is addressed in section 366 of the Bankruptcy Code. Utilities “may not alter, refuse, or discontinue service to, […]
WHAT DEBTS CANNOT BE DISCHARGED IN BANKRUPTCY?
There are three common types of debts that cannot be discharged in bankruptcy. The first type of nondischargable debt is income tax liability. The general rule is that if you incurred income tax liability within the last three tax years, the debt will not be discharged in bankruptcy. The second type of nondischargeable debt is […]