Bankruptcy Services in Killeen & Waco

Who Can File for Bankruptcy in Texas?

Both individuals and businesses can file for bankruptcy in Texas. To file, venue and division assignment generally depend on where you have lived, maintained a domicile, had your principal place of business, or held principal assets during the applicable lookback period. Bankruptcy cases are handled in federal court, and the Waco Division is part of the Western District of Texas. Because her office and the courts now largely operate virtually, Erin is prepared to assist clients in Waco, Killeen, and throughout Central Texas. 

Types of Bankruptcy in Texas

Before you file for bankruptcy, it can be helpful to understand all of the available options. After evaluating your financial circumstances, Erin can evaluate your eligibility for each bankruptcy type. 
The firm’s bankruptcy services in Killeen & Waco include assistance with:

• Chapter 7 Bankruptcy. Chapter 7 bankruptcy generally addresses liquidation and discharge of qualifying debts for eligible individuals or businesses.  The vast majority of the bankruptcy cases that Erin files are Chapter 7 bankruptcies.  Whether an individual can keep property and discharge particular debts depends on applicable exemptions, liens, debt types, and the facts of the case. You can then begin re-establishing your credit after a Chapter 7 discharge. 
• Chapter 11 Bankruptcy. Chapter 11 bankruptcy is usually used by businesses that need to reorganize their debt. Filers must propose a reorganization plan on which creditors will vote. Even if some creditors object, the bankruptcy judge may still confirm the plan if it meets applicable legal requirements for feasibility and fairness.
• Chapter 12 Bankruptcy. This highly specific type of bankruptcy is designed to help qualifying family farmers and fishermen reorganize their debts.
• Chapter 13 Bankruptcy. When you file for Chapter 13 bankruptcy, you commit to an active bankruptcy case that will last between three to five years. Plan payments, treatment of income tax refunds, and notice to an employer vary based on the confirmed plan and the circumstances of the case.  Therefore, Erin uses Chapter 13 bankruptcy very rarely and only when it fits the client’s circumstances. Do not file for Chapter 13 bankruptcy without exploring the full extent of your options with a free consultation at Erin Baker Shank, PC. 

Deciding When Bankruptcy Is Your Best Option

Bankruptcy may not be the best path forward, even if you are facing severe financial difficulties. You may understandably have trouble weighing the pros and cons of filing. Fortunately, you are not alone, and resources are available to help you decide what to do next. 

Though Erin focuses her legal practice on bankruptcy, she recognizes it is not the right choice for every situation.  After analyzing your circumstances and walking you through what filing can (and cannot) do for you, she can answer your questions, address your concerns, and review non-bankruptcy alternatives with you. 

As an individual, bankruptcy may be right for you if:

• You have substantial amounts of medical debt and/or credit card debt. Chapter 7 bankruptcy may discharge qualifying unsecured debts. You may also be able to address qualifying tax debt owed to the IRS, depending on the age of the debt and other legal requirements.  Student loans are generally subject to a higher discharge standard than many other debts, and dischargeability requires a case-specific analysis. 
• Bankruptcy exemptions can protect your assets. Texas and federal law offer exemptions that may allow Chapter 7 filers to keep certain property, including a home and vehicles. Erin is very familiar with these laws and can advise you regarding retaining your assets.  

If you have fallen behind on mortgage payments, you may not necessarily need to file for bankruptcy. We can explore and pursue other foreclosure defense options, including home loan modifications. If you have been told that the only way to save your home if you are not current on your mortgage is to file Chapter 13, please see us for a free initial consultation. 

You can choose to file for bankruptcy with or without your spouse. Each approach has advantages and disadvantages, and Erin can discuss the ramifications of either choice.  Even if your spouse will not be joining you in the bankruptcy filing, Erin likes to meet with you and your non-filing spouse to explain the entire bankruptcy process and make sure both you and your spouse are aware of any effects your bankruptcy filing may have on your family’s budget. 

The firm’s bankruptcy services in Killeen & Waco also include assistance with long-term financial recovery. To that end, Erin and her team can review your credit reports to help identify creditors for inclusion in your bankruptcy filing. After you receive your discharge, Erin will send the Discharge Order to the credit reporting agencies (Experian, TransUnion and Equifax) and can help you review your reports for accurate discharge reporting.  Erin provides this service free of charge to all of her clients. 

Bankruptcy Questions by Debt Situation

Credit-card and medical debt are commonly evaluated as unsecured debt, while mortgages and vehicle loans involve collateral and separate questions about keeping or surrendering property. A Waco bankruptcy lawyer can review the debts, income, assets, and immediate collection risks that shape the available options.

Small-business owners may need to distinguish personal liability from business obligations before deciding whether liquidation, reorganization, or a non-bankruptcy solution fits. We also assist with qualifying IRS tax debt issues and home loan modifications when those concerns are part of the overall financial picture.

How Do I File for Bankruptcy in Texas?

Though emergency filings are sometimes required if you are facing imminent foreclosure, it is rarely a good idea to rush into bankruptcy. A successful case requires that your bankruptcy paperwork be prepared completely, accurately, and truthfully.  Erin has represented over 6,000 individuals from Central Texas as they address their financial challenges and so she is very qualified to help you put your financial struggles behind you. 

To successfully file for bankruptcy in Texas, you must:

• Gather financial records. You will need documents relevant to your financial situation, which can include bank statements, federal income tax returns, pay stubs, divorce decrees, wills involving inheritance issues, debt records, and asset information. Erin will thoroughly review all financial records to evaluate available exemptions and the treatment of your debts.  
• Complete mandatory credit counseling and debtor education courses. You must generally complete a court-approved credit counseling course before you file and a debtor education course after you file.  The fees for these courses are included in the one fee that you pay Erin Baker Shank and we will email you the link to these classes so that you can take them from the comfort of your home.  After you complete these courses, we are emailed your certificate of completion from the course instructor and e-file it in your bankruptcy case. 
• Choose a bankruptcy type to pursue. Most Texans will realistically choose between Chapter 7 and Chapter 13 bankruptcy. Chapter 7 requirements, trustee meetings, and discharge timing depend on the case.  Chapter 13 bankruptcy is longer and more complicated because it generally requires plan payments over a period of three to five years. Chapter 13 should be considered only after reviewing whether it fits your circumstances. If you have been told that Chapter 13 is your only option, please see us for a free initial consultation so that we can discuss alternative ways to address your financial situation. 
• File your bankruptcy paperwork with the court. Once your attorney’s fees and expenses have been paid and you have given Erin all of the required documents, the paralegal assigned to your case will complete a first draft of your bankruptcy documents. Erin will then schedule a Zoom meeting with you. During this meeting, she will personally go over every document with you to verify it is completed accurately. Erin will then collect your signature electronically and file your case. You will meet with the Chapter 7 Trustee after your case is filed. Erin meets with you the night before that meeting (via phone) and then is on the phone with you while you meet with the bankruptcy trustee. 

How Will Bankruptcy Affect My Credit?

Contrary to what many people believe, bankruptcy does not affect every person’s credit in the same way. Your prior payment history, debt levels, filing chapter, and post-discharge conduct can all affect credit reporting and future borrowing.  Bankruptcy can discharge qualifying debt and support financial recovery.  Erin provides guidance on reviewing credit reports, building a sustainable family budget, and taking practical steps toward rebuilding credit after debt relief. 

Can I Keep My Property after Filing for Bankruptcy in Texas?

In many cases, yes. Chapter 7 bankruptcy does involve a liquidation process, but Texas bankruptcy exemptions may allow you to protect many types of property. Whether you can retain property depends on the applicable exemptions, equity, liens, and decisions about reaffirming or surrendering secured debt. 

In a Texas Chapter 7 bankruptcy, exemptions may apply to:

• Your home. Homestead protections can be important in a Texas bankruptcy analysis, but applicable acreage rules, liens, equity, and other facts must be reviewed in your case. 
• Your car or vehicle. You may be able to claim an exemption in a vehicle, though a valid lender lien and the terms of the loan remain important.  
• Your retirement accounts. Pensions, IRAs, 401(k)s, and other retirement accounts may receive exemption protection, subject to applicable law and account-specific facts.
• Your personal property. Household goods and other personal property may be protected through available exemptions, depending on the property and value claimed. 

Can I Discharge My Student Loan Debt through Bankruptcy?

Student-loan discharge is not categorically barred in bankruptcy cases filed in Texas, but it is subject to a higher legal standard than many consumer debts. A borrower generally must establish undue hardship through an adversary proceeding, which is a separate lawsuit within the bankruptcy case.  Erin frequently advises clients on the availability of financial relief through income-based contingent repayment plans.  Erin also has lobbied Congress to attempt to restore the ability to discharge student loans in bankruptcy cases.  These efforts continue, and Erin stays aware of changes affecting the ability of her clients to address student-loan debt. 

Debt Relief for Military Families

We serve the Fort Hood community and Killeen area, including service members and veterans evaluating debt-relief concerns involving military pay, benefits, garnishments, professional obligations, and security-clearance considerations. The effect of bankruptcy on a clearance or other obligation depends on the applicable rules and individual circumstances.

We also identify HAVEN Act protections for qualifying veteran disability benefits as an important issue to consider in bankruptcy planning. A bankruptcy attorney in Waco residents can consult should review the facts of the individual case before recommending a filing or another debt-relief path.