Legal Question in Bankruptcy in Texas

Can we file Bankruptcy?

My husband was laid off from a job 18 months ago where between our two salaries we made 90k. My salary is just a little over 29k gross, and we have struggled and struggled to make ends meet. The credit card bills that we each have are what is hurting. We now have a small at home business that is not consistant in bringing in any income. I am at the point of no alternative except to file bankruptcy. I have been on a dept consolidation and can not even make those payments now. We rent and try to live very meagerly, but it's just not enough. Can we file a personal bankruptcy that would not include the business?


Asked on 7/03/03, 9:21 am

2 Answers from Attorneys
Lawrence Maun Lawrence J. Maun, P.C.

Re: Can we file Bankruptcy?

You can file for Bankruptcy, however, all of your assets, including your business, are subject to the bankruptcy filing. Even so, exemptions probably will allow you to exclude most if not all of your assets from claims of creditors. Specifics regarding your assets are needed before a determination can be made. Call if you wish for a no cost discussion on the telephone. Larry Maun 713.266.2560

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Answered on 7/03/03, 10:37 am
Andrew Nichols Law Office of Andrew B. Nichols

Re: Can we file Bankruptcy?

Short answer --- Yes, please file. If will improve your emotional and financial situation.

You are essentially asking if you have enough debt to necessitate or qualify for a bankruptcy filing. The Bankruptcy Code does not require a minimum amount of debt and currently there are no limitations to the amount of monthly income you can receive. Many people have the impression that they must be destitute in order to "qualify" for bankruptcy. This is not the case. If your income is high enough that it exceeds your necessary monthly expense (not including payments on credit cards)substantially then you would probably need to file under Chapter 13 instead of Chapter 7 and repay a portion of your debts. In your particular situation I don't believe your monthly income is high enough to warrant a Chapter 13 filing. You would file for a complete "discharge" (a bankruptcy term which means wipeout or erase) under Chapter 7.

Your filing should not effect your small business if it is not worth anything. If it has a lot of inventory or equipment that would be another issue. PLEASE READ MY FIRM'S PHILOSOPHY! Everyone, is entitled to get a fresh start. Please feel free to call me to discuss your situation in more detail. ph. (214) 979-7330

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Answered on 7/03/03, 11:01 am


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