Chapter 7 Bankruptcy Lawyer in Killeen & Waco, Texas

Serving Clients Throughout North Texas

Are you struggling to pay your bills and cover your day-to-day expenses while debt just keeps piling up? If so, this may be the time to consider filing for Chapter 7 bankruptcy. The very thought of dealing with bankruptcy can be overwhelming. However, bankruptcy does not have to be that way. In fact, bankruptcy can give you a financial  fresh start.

Attorney Erin B. Shank is here to help. For 40 years, Erin has represented clients through Chapter 7 bankruptcy from start to finish. Erin understands how a Chapter 7 bankruptcy can free people from the burden of crushing debt. Erin knows how to stand up for clients during the bankruptcy process.

Erin is committed to your convenience and safety throughout the bankruptcy process. You never have to leave the comfort and safety of your own home. Erin offers virtual consultations, electronic document gathering, Zoom conferences with her to review your bankruptcy paperwork, electronic filing, and telephonic court appearances. This is the safest law firm to use to file your bankruptcy during this Global Pandemic.

Our commitment to safety does not compromise the quality of the legal representation. By leveraging modern technology, we maintain a flexible and accessible framework for our clients. This framework also allows us to offer more personalized and immediate assistance, helping to answer questions and resolve issues quickly.

For your free consultation with Erin Baker Shank, PC., contact Erin online today or by phone at (254) 690-4110.

What Is Chapter 7 Bankruptcy?

Chapter 7 is the simplest and quickest type of bankruptcy relief available under American law. The vast, vast majority of the cases filed by Erin B. Shank are Chapter 7 filings. Due to the strong exemption laws under both State and Federal law, most debtors are entitled to retain all their property as exempt. The entire case, from filing to discharge, lasts approximately three months with only one meeting with a Trustee, who is not a judge. In Chapter 7 cases, your wages are not garnished, and you are entitled to retain your income tax refunds.

Understanding the implications of Chapter 7 bankruptcy on your financial situation can be essential. Certain criteria must be met, and navigating these requires careful attention to detail. For example, filers must pass a means test to qualify for Chapter 7, determining if their income is low enough to file. Additionally, understanding what debts can and cannot be discharged, such as most unsecured debts versus obligations like student loans, is crucial for planning a successful filing.

What Happens When You File for Bankruptcy?

When you file for Chapter 7 bankruptcy, an "automatic stay" is immediately put into effect. This automatic stay is a legal injunction that halts actions by creditors to collect debts. This means that the minute you file for a Chapter 7 bankruptcy, any foreclosure proceedings are stopped right in their tracks. This provides you with a breather and the opportunity to work out a plan moving forward. 

In addition, a meeting with your creditors, also known as a "341 meeting," is arranged. Here, the bankruptcy trustee appointed to your case – not a judge – will ask you questions about your bankruptcy and the paperwork you have filed. It's important to note that in a Chapter 7 bankruptcy, you rarely meet with a judge. The whole process is designed to help you regain control of your finances and guide you toward a fresh start.

After the automatic stay, one crucial step is attending the mandatory credit counseling session. This session must happen before filing and aims to provide financial education and better understand your financial situation. Another essential post-filing step includes a financial management course, which must be completed to be eligible for discharge. These courses are designed to give you the tools to manage your financial future more effectively.

Relief from Financial Struggles: How Waco Residents Benefit From Chapter 7 Bankruptcy

Residents of Waco facing insurmountable debt can experience a sense of relief with Chapter 7 bankruptcy, a legal framework provided to help those overwhelmed with debt attain a fresh financial start. Bankruptcy can temporarily halt creditor harassment, potentially give you as much as 60 days of reprieve, and stop wage garnishment. One of the most significant advantages of Chapter 7 for Waco residents is the ability to eliminate unsecured debts such as credit cards, personal loans, and medical bills, freeing you from the chains of continuous financial burden. Moreover, specific exemptions under Texas law allow individuals to retain certain properties and assets, which further makes Chapter 7 a viable option for many.

Local sectors, including employees from industries like education and healthcare, can find some peace of mind through strategic debt elimination. This sets Waco apart, as potential law adjustments in state exemptions and local economic factors could affect the financial strategies individuals choose. With careful planning guided by an attorney experienced in local regulations, it is possible for Waco residents to navigate this complex process efficiently, thus finding a tailored solution that meets their unique needs.

A Comprehensive Look at the Means Test in Waco

The Means Test is pivotal to qualifying for Chapter 7 bankruptcy, acting as a gateway for debt relief. In Waco, like the rest of Texas, this test assesses whether your income is below the state's median, a critical factor in determining eligibility. For many residents, ensuring all income sources are correctly reported and taken into account—including bonuses or seasonal work—could influence their application outcome. Additionally, it's important to note that certain expenses related to the cost of living in Waco, such as transportation and housing, may impact the allowable deductions in the Means Test calculation.

Due to the fluctuating cost of living, understanding which expenses may qualify for deductions can make a difference during filing. Consulting with a knowledgeable attorney ensures each client gains a clearer picture of where they stand financially. For example, high health insurance or childcare costs could potentially sway the results in favor of qualifying. Therefore, precise documentation is essential to streamline this process, making it a less daunting experience for Waco clients seeking financial reset through Chapter 7 bankruptcy.

How Will Chapter 7 Bankruptcy Affect My Credit?

Before Erin files your bankruptcy case, Erin and her staff review your credit reports with the three credit reporting agencies, Experian, Transunion, and Equifax, and make sure that any creditors who have posted any derogatory remarks on your credit reports are included in your bankruptcy filing. When you receive your bankruptcy discharge, Erin sends that Discharge Order to the three credit reporting agencies, asks them to correct your credit report to show that all of these debts have been discharged and you are then sent corrected credit reports so that you can begin your financial fresh start. Erin provides this service to all her clients, for no extra charge.

It's essential to understand that while Chapter 7 does affect your credit score, it also offers a pathway to rebuild it. Initially, the bankruptcy will stay on your credit report for up to ten years, but many of Erin's clients notice improvement in their credit scores shortly after their discharge due to the removal of unpaid debts. Simple steps like responsibly using a secured credit card and paying bills on time can significantly aid in your credit repair journey.

Will Chapter 7 Stop a Lawsuit Against Me?

When you file Chapter 7 bankruptcy, an automatic stay is imposed automatically as your case is filed.  This stay prevents your creditors from continuing their efforts to collect the money they claim you owe. 

This includes any efforts to win money from you in a lawsuit involving:

• Unpaid credit card balances
• Compensation owed for breach of contract
• Home foreclosures for mortgage nonpayment
• Money owed in a civil claim or judgment

Unfortunately, bankruptcy can't prevent every type of legal action. 

After filing under Chapter 7, you will still be subject to the consequences of:

• Criminal charges or convictions
• Divorce and separation proceedings
• Child custody and support cases

It's important to carefully consider your options if facing multiple types of legal actions simultaneously. Engaging with a professional can help determine which obligations may still remain after a Chapter 7 filing and ensure that all eligible actions are paused as expected. This can provide a strategic advantage in managing overall legal exposure and financial recovery.

How a Central Texas Chapter 7 Bankruptcy Lawyer Can Help

A Chapter 7 bankruptcy case can be the first step on the path to financial recovery. Your bankruptcy paperwork is signed by you and your spouse under the penalty of perjury and so it is very important that your complicated bankruptcy documents are completed correctly and truthfully. You can rest easy with Erin and her staff of paralegals. 

Our bankruptcy firm will do the following:

• Plan for your bankruptcy – Bankruptcy laws require in-depth analysis and knowledge. Your attorney will also give you a questionnaire in which you list all of your assets and all of your debts. Your bankruptcy paperwork is signed by you under the penalty of perjury and you must include all of your assets and all of your liabilities. Don’t try to hide assets from your attorney – it is better to disclose all of your assets to your attorney who can then advise you as to whether they are exempt or if there is any problem retaining them. It is important to get someone on your side who knows how to plan and file your case. Let Erin's four decades of experience guide you as you make this very important decision.
• Identify the documents you will need – The documents typically required are listed below:
  • Pay stubs for the last 6 months, preceding the filing of your case (if you are married, include your spouses' pay stubs)
  • Last 2 years of federal income tax returns that you have filed
  • Last 6 months of bank statements in all of your checking & savings accounts
  • Copies of any lawsuits that have been filed by you or against you
  • Any divorce decrees entered in the last 5 years
  • If more specific documents are needed because of specific issues unique to your case, Erin will inform you and help you obtain them, if necessary. 
• Analyze your situation and recommend a course of action – Every bankruptcy case is unique. You need an experienced and thoughtful Texas Chapter 7 bankruptcy attorney to review your fact situation and ensure you take the best path forward.
• Explain bankruptcy law and what it means for you – Erin Shank meets with each of her clients and their spouses (even if their spouses are not joining in the bankruptcy filing) to explain the process and effect of bankruptcy to each of her clients. She also personally attends every court appearance in each of her cases.
• Draft bankruptcy filings for the court – Every document that you sign and are filed in your bankruptcy case are signed by you and your spouse under the penalty of perjury. These documents can be very complicated. Erin has been working with clients for forty years completing these same documents for each client. You will know when you hire Erin that your documents are being prepared completely and accurately due to her extensive experience in representing clients just like you file their bankruptcy cases.
• Handle any communications with creditors – As soon as you retain the firm to represent you, Erin and her paralegals begin receiving your creditor calls and letters while you pay the legal fees and get your required documents to Erin that are necessary for her to prepare your case for filing. After your bankruptcy filing is completed, those creditors are prohibited from calling you or contacting you and foreclosing on any of your assets. The stress of those collection calls and letters both before and after your bankruptcy filing is completely removed as Erin and her staff responds to all creditor communication for all their clients.
• Stand up for you during meetings with the trustee or creditors – Erin has been practicing with the Chapter 7 Trustees in Central Texas for many, many years. She has a very good professional relationship with the Trustees and will communicate directly with him/her regarding any issues or problems that may arise in your case so that they can be handled correctly. All creditor collection calls and letters are also handled directly by Erin, and from the minute you retain this law firm, even before your bankruptcy is filed with the court.

In addition to the above services, Erin and her team go beyond just handling legal paperwork. We are committed to ensuring you fully understand all the steps involved and any potential implications a Chapter 7 bankruptcy might have on your future financial health. We offer guidance on rebuilding credit post-bankruptcy, including budgeting advice and setting realistic financial goals to lay a strong foundation for your financial recovery.

Schedule a Consultation Today. Call (254) 690-4110.

If you are considering filing a bankruptcy case, contact an attorney's office for a consultation. You will leave with a better understanding of how bankruptcy can help you and a packet containing the documents you must gather to enable our Chapter 7 bankruptcy lawyer to prepare your filing. 

If you are married, bring your spouse with you to the consultation, even if your spouse is not planning to join. We also ask non-filing spouses to attend the second session in which the paperwork is compiled and filed. Attending these sessions lets both spouses understand the bankruptcy process, understand the impact that the filing has on both the filing and non-filing spouse and helps make sure that the paperwork is prepared accurately.  If you have other questions, reach out to Erin today and schedule a free initial virtual consultation to discuss your options.

Speak with a Chapter 7 lawyer at Erin Baker Shank, PC. during a free initial consultation. Contact us online or dial (254) 690-4110 today. We serve clients throughout Waco & Killeen.

Chapter 7 Bankruptcy Means Test in Texas

In 2005, amendments to the U.S. Bankruptcy Code became law and those amendments require your attorney to collect your income from all sources for the six months preceding the filing of your bankruptcy case in order to correctly complete a portion of the bankruptcy forms called the Means Test. The Means Test is a complicated document and many types of income, including social security income and VA disability income, are excluded from the Means Test but should be included in your budget that is also filed with your bankruptcy case. 

Erin Shank has studied the case law that has been in judicial opinions about the Means Test and is familiar with how to complete that complicated form correctly and how to apply the many exceptions to the Means Test. Even over the median, debtors on the Means Test can file Chapter 7 relief under certain circumstances. If you are concerned about whether or not the Means Test will allow you to file a Chapter 7 case, you need to consult an experienced, knowledgeable Texas chapter 7 bankruptcy attorney like Erin B. Shank to assist you with those complicated documents. If you have questions about the Means Test and how it might affect you, talk with Chapter 7 bankruptcy lawyer Erin B. Shank in Waco or Killeen today.

Typically, the Means Test looks at your income, family size, and basic living expenses to determine eligibility. It's important for filers to provide detailed and accurate financial records during this process to determine precise eligibility. Missteps or errors can delay filings, which is why having a knowledgeable attorney to double-check and walk you through this process is invaluable for successful navigation.

Is Chapter 7 Bankruptcy My Best Option? What to Do If You Can’t Afford it?

A Chapter 7 bankruptcy can discharge virtually all debt, except student loans, child support, and some IRS debt. It is a powerful tool for people who want to free themselves from their debts and get back on their feet quickly and efficiently. The vast majority of Erin’s practice consists of clients filing for Chapter 7 relief and receiving quick and meaningful debt relief so that they can obtain a financial fresh start.

After attending a free consultation with this law firm, Erin’s clients learn that a Chapter 7 bankruptcy is an extremely good option for them. These individuals often have high levels of unsecured debt (such as credit cards, payday loans, and medical bills). They are able to discharge this debt and work, with Erin’s suggestions, on improving their credit and getting their financial fresh start. Chapter 7 debtors do not have their wages or income tax refunds garnished and, due to generous Texas and Federal exemptions, are entitled to keep all their assets as exempt. It is truly a great resource for individuals struggling with the burdens of debt and credit reports full of derogatory comments.

Chapter 13 bankruptcies require you to remain in an active bankruptcy case for three to five years where you and your income is monitored, and your wages and income tax refunds are garnished to pay your creditors. You actually pay another bankruptcy attorney, called the Chapter 13 Trustee, a 10% commission on every payment made to your creditors. Chapter 13 is really financial imprisonment and is therefore rarely recommended by Erin to her clients. If someone has told you that Chapter 13 is your only option for debt relief, please call or contact Erin for a free, virtual, initial consultation to discuss your alternatives.

If you are considering bankruptcy, Chapter 7 bankruptcy lawyer Erin Shank can review your situation and help you decide the best option to aggressively address your financial situation.

For those who worry about affording legal aid, several options may be considered. Look into legal aid societies and pro bono resources that might offer assistance based on eligibility criteria such as income. Discuss fee arrangements with your legal representative, as some may offer payment plans to make the process more accessible. Above all, making an informed decision with professional guidance can considerably impact your financial well-being.

For experienced guidance with your Chapter 7 filing, contact Erin Baker Shank, PC. at (254) 690-4110 or complete an online form. We are happy to answer your questions.

How Does a Chapter 7 Bankruptcy in Texas Work, Especially During COVID-19?

Erin respects the health concerns of her clients and her paralegals and has developed the only completely touch-free bankruptcy filing system in Central Texas. All other law firms require clients to meet with them personally many times during the case, which can be a health challenge for everyone. When you hire Erin to handle your bankruptcy case, you can get your debt relief in a completely safe, touch-free system that Erin has developed.

 That system is as follows:

• Your free, initial consultation with the firm is conducted virtually, either on the phone or by Zoom.
• At your initial consultation, you will be quoted a fee for the costs of filing your case with Erin's firm. While you are current on your payment plan with Erin's firm, Erin responds to all your creditor calls and letters to take the stress of that painful interaction off of you. You can pay all your fees to the firm on our website and will receive a bill each month setting forth each payment you have made and your outstanding balance.
• After your fees are paid in full, Erin will need to obtain simple documentation from you which you can mail, email, scan, fax or drop off at either of our office locations in a dropbox. You fill out a simple questionnaire, either online or by paper, and then send that completed questionnaire to us either online, through the mail, or in one of the office lock boxes.
• A paralegal then works with you telephonically to prepare the first draft of your bankruptcy paperwork. You then meet with Erin Shank personally via Zoom for several hours as your bankruptcy papers are reviewed and finalized. You sign those documents electronically through a touch-free method and then she will e-file your case. The moment Erin e-files your case, she will know when your telephonic meeting with the Trustee is scheduled. You know the day your case is filed when your meeting with the Trustee has been scheduled. Erin calls you the night before the meeting and prepares you for that telephonic meeting with the Bankruptcy Trustee. She appears telephonically with you on that call and is there to help you answer all of the Trustee's questions.
• You then receive your bankruptcy discharge about 60 days after the meeting with the Trustee. It is sent to you in the U.S. Mail by the Bankruptcy Court's Clerk. Corrected credit reports are then also sent to you by Experian, Transunion, and Equifax by the U.S. mail because Erin writes those companies and tells them to correct your credit reports to show that your debts have been discharged. She requests those credit reporting agencies to send you corrected credit reports and you will receive those within thirty days of your bankruptcy discharge. 

This is the first time in American history that an individual can file bankruptcy completely touch-free. Let your bankruptcy filing occur in a completely safe and convenient environment from the comfort of your own home. Not only will you not be exposed to COVID-19, you will also not be exposed to any other contagious condition (such as the common cold or strep throat). 

This touch-free process eliminates unnecessary exposure risks while ensuring efficient case progression. Our office remains available for support and guidance through every step of your bankruptcy journey. It's about getting you the relief you need while keeping health concerns and modern safety in mind, adapting to the new normal without compromising our service standards.

A Comprehensive Look at the Means Test

The Means Test is pivotal to qualifying for Chapter 7 bankruptcy, acting as a gateway for debt relief. In Waco & Killeen, like the rest of Texas, this test assesses whether your income is below the state's median, a critical factor in determining eligibility. For many residents, ensuring all income sources are correctly reported and taken into account, including bonuses or seasonal work, could influence their application outcome. Additionally, it's important to note that certain expenses related to the cost of living in Waco, such as transportation and housing, may impact the allowable deductions in the Means Test calculation.

Due to the fluctuating cost of living, understanding which expenses may qualify for deductions can make a difference during filing. Consulting with a knowledgeable Chapter 7 bankruptcy lawyer ensures each client gains a clearer picture of where they stand financially. For example, high health insurance or childcare costs could potentially sway the results in favor of qualifying. Therefore, precise documentation is essential to streamline this process, making it a less daunting experience for Waco clients seeking financial reset through Chapter 7 bankruptcy.

Is Chapter 7 Bankruptcy My Best Option? What to Do If You Can’t Afford It?

A Chapter 7 bankruptcy can discharge virtually all debt, except student loans, child support, and some IRS debt. It is a powerful tool for people who want to free themselves from their debts and get back on their feet quickly and efficiently. The vast majority of Erin’s practice consists of clients filing for Chapter 7 relief and receiving quick and meaningful debt relief so that they can obtain a financial fresh start.

After attending a free consultation with this law firm, Erin’s clients learn that a Chapter 7 bankruptcy is an extremely good option for them. These individuals often have high levels of unsecured debt (such as credit cards, payday loans, and medical bills). They are able to discharge this debt and work, with Erin’s suggestions, on improving their credit and getting their financial fresh start. Chapter 7 debtors do not have their wages or income tax refunds garnished and, due to generous Texas and Federal exemptions, are entitled to keep all their assets as exempt. It is truly a great resource for individuals struggling with the burdens of debt and credit reports full of derogatory comments.

Chapter 13 bankruptcies require you to remain in an active bankruptcy case for three to five years, where you and your income are monitored, and your wages and income tax refunds are garnished to pay your creditors. You actually pay another bankruptcy attorney, called the Chapter 13 Trustee, a 10% commission on every payment made to your creditors. Chapter 13 is really financial imprisonment and is therefore rarely recommended by Erin to her clients. If someone has told you that Chapter 13 is your only option for debt relief, please call or contact Erin for a free, virtual, initial consultation to discuss your alternatives.

If you are considering bankruptcy, Chapter 7 bankruptcy lawyer Erin Baker can review your situation and help you decide the best option to aggressively address your financial situation.

For those who worry about affording legal aid, several options may be considered. Look into legal aid societies and pro bono resources that might offer assistance based on eligibility criteria such as income. Discuss fee arrangements with your legal representative, as some may offer payment plans to make the process more accessible. Above all, making an informed decision with professional guidance can considerably impact your financial well-being.

Talk to a Texas Chapter 7 Bankruptcy Lawyer Now

If you are considering bankruptcy, contact an experienced chapter 7 bankruptcy attorney today. With 40 years of experience, Erin B. Shank understands the bankruptcy process and knows what it can mean for your future. Erin offers a range of contact-free services, including virtual consultations, electronic signatures, filing, Zoom conferences with her, and telephone court appearances, to make your entire bankruptcy process safe during this COVID-19 scare.

Take control of your financial future in a manner that balances safety and efficacy by reaching out today for your confidential consultation. Discuss your concerns with someone who comprehends not just the legal intricacies but also the emotional journey intertwined with bankruptcy proceedings.

For a free, initial, virtual case consultation, contact Erin B. Shank today. Reach out online through this online form or by phone at (254) 690-4110.