Law Articles And Legal Issues

Busby & Contreras Helps Explain New Law Affecting Bankruptcy Rules

Houston, TX (PRWEB) October 4, 2007 -- The Houston-based bankruptcy and family law firm Busby & Contreras helps explain a new law affecting bankruptcy rules, while assuring clients that it does not impact their rights to bankruptcy protection.

The partners explain that the Bankruptcy law requires all debtors to fulfill two education requirements: a credit-counseling course prior to filing and a financial management course before obtaining a discharge. While one of the Chapter 13 Trustees in Houston offers the required 2ND course to Chapter 13 debtors, another trustee does not offer them. Chapter 7 debtors are required to take the courses on their own.

"All bankruptcy education courses are available in person, over the phone, or over the Internet. They are approved for the district in which the debtor is filing and we can provide all of the information on course costs and availability," said Partner Ricardo Contreras.

What is Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy is often referred to as a "liquidation bankruptcy." In Chapter 7, all of the debtor's assets, other than those specifically exempt from liquidation, are turned over to a bankruptcy trustee for sale.

Sale proceeds, if any, are distributed among the creditors. In most cases, Chapter 7 debtors have little non-exempt personal property, because of Texas exemption laws. Chapter 7 Bankruptcy is used to eliminate, or discharge primarily unsecured debts such as credit cards or medical bills. Chapter 7 does not eliminate secured debts, such as vehicles (unless the secured item is surrendered). Chapter 7 will not save houses from foreclosure or a car from repossession if payments are delinquent.

What is a Chapter 13 Bankruptcy?

Chapter 13 bankruptcy results in a plan to repay all or part of a debt. Many times a debtor is allowed to pay credit cards and medical bills at pennies on the dollar. Chapter 13 is used most often to save a house from a foreclosure sale or vehicle from repossession. Chapter 13 is also useful to eliminate some IRS debt and to establish an affordable plan to pay IRS debt that cannot be eliminated. Chapter 13 Bankruptcy is available to debtors with regular income.

What is the Means Test and does the Means Test Apply to Me?

The means test is an objective test to determine ones ability to fund a Chapter 13 plan or eligibility for a Chapter 7 bankruptcy. If a debtor is above the median income for their state, and their debt is primarily consumer debt then they must submit to a means test. Effective October 15, 2007, the median income for households of one to four is noted below.

one two three four

TEXAS $35,280 $49,933 $52,313 $59,808

Should a debtor's household income exceed the amount allocated for the six months prior to the filing of their case, then a particular form called the B22 must be completed and may determine the payment in a Chapter 13 -- otherwise the result could be a finding of abuse and subsequent dismissal of a Chapter 7. Although a debtor may be above the median income and have to submit to the means test, this does not disqualify them from bankruptcy. It simply results in a more detailed analysis of income and expenses.

Busby & Contreras is a full-service bankruptcy and family law firm which works on Chapter 13 and Chapter 7 bankruptcies, credit repair, debt consolidation, adoptions, Attorney General and child support cases, CPS cases, contempt actions, contested and uncontested divorces, military divorces, modifications of visitation and custody orders, motions to terminate wage orders, paternity cases, and protective/temporary restraining orders. To learn more about the firm and the services they provide, visit www.busby-lee.com, or call (713) 974-1151.

# # #

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

Other Law Sites
Search The Internet For Other Law Sites

Law Books
Search For Law Books At FindaBook.com

ConsolidatedCredit.org Advises -- Use Income Tax Refund Wisely and Consider Applying Refund to Lower Debt and Start Savings Account
For many Americans, income tax refunds seem like free money, which makes it easier to spend. ConsolidatedCredit.org says consumers should stop and think about their complete financial situation before deciding how to use the money.

Payroll Hawaii, Unique Aspects of Hawaii Payroll Law and Practice
The Hawaii State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:

Penner Law Firm, LLC Principal Real Estate Attorney Acquires License to Practice in Massachusetts
Penner Law Firm, LLC is pleased to announce that its principal real estate attorney, Scott Penner, is now licensed to provide legal services in the Commonwealth of Massachusetts.

Airline Industry and FAA is Examined in New Article from Clifford Law Offices
Robert Clifford has authored and posted a new article on the reported cozy relationship between airline executives and the Federal Aviation Administration (FAA). Clifford, of Clifford Law Offices, examines the ethical problems this creates and discusses solutions to overcome these concerns. An introduction is provided, with a link to the full article.

Tax Relief Scam- Free Useful Information On Taxes Relief
If your major interest is information related to tax relief scam or any other such as 2008 tax relief, Tennessee extension, property tax bill or economic expansion incentives relief from income taxes, this article can prove useful.

Company Tax Relief- Free Significant Guidepost For Taxes Relief
If you are searching for information related to company tax relief or any other such as Canadian corporate tax, federal income tax withholding, federal income tax planning or employee tax relief you have come to the right article. This piece will provide you with not just general company tax relief information but also specific and helpful information. Enjoy it.

Maryland Lawyer Unveils Unique Business Referral Group
Perfect Networker, a new business referral group emphasizes "mastermind" collaboration and education, not just referrals.

Accredited Distance Learning Law Degree - What To Consider When Choosing
Now more than ever people are looking into ways to earn a degree at home. Either by video, CD, or online. This is likely a combination of things, including the ever greater demand for higher education in the workforce and the often chaotic schedules and home lives of many Americans. It should come as no surprise then that would be lawyers would be interested in a distance learning law degree.

Looking for a Maryland Accident Lawyer?
A Maryland accident lawyer isn't very hard to find. There are lots of them, as in every other American state.

Writing An Effective Legal Resume
Law school taught you plenty, but it probably didn?t teach you how to write a resume that will secure you an interview with the firm of your dreams It can be daunting to create or even update a resume because there?s so much pressure to be unique

Emerging Markets, Property Law
I read an interesting article in foreign Affairs magazine last year, and recently in the Economist also. The articles stated in some way that a country without a set of laws for property rights would mean slow-growth, lack of foreign investment and economic vitality would be scarce.

Court Said Arthur Alan Wolk and The Wolk Law Firm Acted 'Honestly and In Good Faith': Arthur Wolk Shares Philadelphia Court of Common Pleas Opini
In response to a question about a previous and now outdated court case, aviation attorney Arthur Alan Wolk made public today the fact that he and his firm, The Wolk Law Firm, have been totally exonerated from a long past criticism made by the Pennsylvania Superior Court in an opinion authored by the Honorable Sandra Mazer Moss of the Philadelphia Court of Common Pleas. In her opinion (see: http://arthuralanwolk.com/_wsn/page3.html), rendered on January 31, 2006, Judge Moss cited facts established on the record showing that the Superior Court's criticism of Wolk were completely unwarranted in the case of Eigen v. Textron Lycoming Reciprocating Engine Div., No. 003079, Co...

Mosaic Retains Nationally Recognized Life Settlement Law Firm Greenspoon Marder, P.A.
Mosaic Management Group, Inc, a Boca Raton FL based Portfolio management company, specializing in Life Settlements Portfolios announced Thursday that it has retained Greenspoon Marder, P.A. to represent them and ensure regulatory compliance.

Roni Deutch and Her Team of Attorneys Use Offers in Compromise to Save Clients Over $3.3 Million in IRS Tax Debt So Far In 2008
Roni Deutch, known nationally as The Tax Lady, and her law firm, Roni Lynn Deutch, A Professional Tax Corporation, saved clients an estimated $3,386,770.00 during the first quarter of 2008 through accepted Offers in Compromise.

Law Firm Announcing Launch of New Website
Updated website an improvement; makes it easier and clearer for visitors to browse website and find pertinent legal advice and information.