Legal Question in Bankruptcy in Texas

Re: in debt

Short answer -- I would lean towards filing if I were your friend. He has a large amount of unsecured debt and his monthly income is not nearly enough. Since you are employed and currently have no creditors beating down your doors you are in an excellent position. Most people do not realize that bankruptcy law is in some significant ways similar to tax law. A good lawyer can advise you to best position yourself to take full advantage of bankruptcy relief. Read my firm's philosophy.

The key test in terms of someone's specific situation will be gauging your monthly income and comparing this to your monthly expenses. A required part of any bankruptcy filing under Chapter 7 or 13 is a detailed list of your necessary monthly living expenses. This is an estimate however it should be relatively accurate. This monthly list would include such items as rent, car payments, food, utilities, etc. You would not include any payments of unsecured debts.

Basically, if your monthly expenses when subtracted from your monthly net income leaves you with substantial excess cash then Chapter 7 is not for you. But I'm pretty sure your situation would dictate filing a chapter 7 case. Please feel free to call me to discuss your particular situation in more detail.