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Ask WALLSTREETESQ Your Own Question
Category: Bankruptcy Law
Satisfied Customers: 17252
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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My wife and I are considering filing for bankruptcy and I wanted

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My wife and I are considering filing for bankruptcy and I wanted to see what our options are. I was laid off in January and started working again last month but am not making nearly the money i was making before. Also we recently moved and my wife, who's a school teacher, has not been able to find work. As of now we are current on our bills are current, however, since my wife is no longer employed we no longer make enough money to cover our bills. I think bankruptcy is an option but how exactly will it help us out? We have 2 car loans, several credit cards, student loans, and a personal loan on top of all our other expenses. By the way this would be filed in TX.
if you file a bankruptcy, it will hurt your credit, however it would wipe out all personal debts you have including the personal loan and car loans.

If you want to keep a car you can reaffirm the car loan and pay it outside the bankruptcy. The student loans will not be modified, and will have to be paid.

In texas, in order to file a chapter 7 bankruptcy for cases filed after March 15, 2009, the median income for a single wage earner is $38,545; for a family of two, it is $54,908; for three, $57,053; and for four, $66,400. Add $6,900 for each individual in excess of 4.

If your income is above this, you will have to file a chapter 13, which means that the court would allow you to pay your debts off in a plan up to 5 years, it will also possibly wipe out upto 90% of your unsecured debts.
Customer: replied 8 years ago.
Ok. We are a family of 3 and you stated that the median income for that amount is $57,053. We've earned more than that the last 2 years, however, this year we'll be well below that figure. Will we be able to file for chapter 7? Also, vehicles are exempt property in TX, does that mean that the car loans will also be wiped out or will we have to reafirm them outside the bankruptcy like you mentioned?
If your income for the last six months is lower than the median you can file a chapter 7.

Under Texas law you may keep $30,000 worth of personal property ($60,000 for head of family), including one two-, three- or four-wheeled vehicle; but if their are loans on the car, they have to be paid or they will be repossessed.
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