Austin Texas Bankruptcy Attorney

"When you need an attorney who really cares about you, call Ray Fisher. He really made the difference for us."

Frequently Asked Questions

We try to anticipate questions that you might have about our services and provide the answers here. If you need additional information, please send an email to:
rayfisher@rayfisherlaw.com

Will filing bankruptcy damage my credit?

Yes, but if you are filing bankruptcy, your credit is already damaged. Bankruptcy can be a way to clean up your credit and allow you to start rebuilding your credit.

How long will bankruptcy be on my credit report?

10 years from the date of filing

Can I rebuild my credit?

Yes

How do I rebuild my credit?

The most common way is to get 2 to 3 credit cards, which is easier than you might think. Use them every month. Charge up to about 50% of your credit limit. Pay them every month. Call the card company every 6 months or so and request a credit limit increase. Once you have the 2 or 3 cards, do not apply for more cards. Try to get only VISA or Mastercard cards from major banks. Avoid department store cards, and do not agree to apply for one while shopping.

How long does it take to rebuild my credit?

Usually 2 to 4 years after completion of your case.

Which is worse on my credit, bankruptcy or foreclosure?

There is no clear answer on this. My opinion is foreclosure, but some think bankruptcy is worse.

How long does it take to file bankruptcy?

Bankruptcies are filed online, so they can be filed 24/7. Once you have credit counseling done, the actual filing of a case can be done in a matter of minutes. I have clients call needing an emergency filing who do the credit counseling on their cell phones as they drive to the office. Once they arrive we can often have the case filed within 10 or 15 minutes depending on how many creditors they have.

When will my bankruptcy be approved?

There is no formal approval process. When the bankruptcy is properly filed, it is accepted for filing automatically. In chapter 13, the court approves the plan about 2 months after filing, and you get your discharge at the end of the case, which is a maximum of 5 years after filing. In chapter 7 you get your discharge in about 3 months after filing.

Do I have to go to court or When do I go to court or see the judge?

Normally you do not go to court or see the judge. You do go to a creditors meeting that is managed by the trustee. Most debtors, in spite of being told repeatedly that this is not court and the trustee is not the judge, will later say that they went to court and saw the judge when they went to their creditor meeting.

How much will it cost?

The cost varies.

Chapter 13 cases normally cost $3200 plus filing fees in Austin
The retainer is normally around $1,000 for these case. The retainer is the part of this that is paid up front to the lawyer. Filing fees are currently $274.
Chapter 7 cases normally cost $1500 to $2500 plus filing fees. This entire fee normally has to be paid before filing. Filing fees are currently $299.
Chapter 11 cases normally will require a retainer of $5,000 to $10,000 or more. The filing fees are substantially higher as well.

What are the downsides of filing bankruptcy?

It will be on your credit report for 10 years. You may have difficulty obtaining credit.

Can I buy a car after filing bankruptcy?

Yes. You will pay a high interest rate, but a number of dealers have financing options for people who have gone through bankruptcy.

Will I be able to buy a house after?

Yes. In the current economy it is hard to say what this looks like. It used to be that you could buy a house with little or no money down about 4 years after filing. Now it will probably require money down at the minimum.

Will I be able to rent a house or apartment after filing?

Yes. Some management companies will not rent to you based on a bankruptcy on your credit report, so it may take some looking. I have yet to have a client be homeless on account of being unable to rent because of a bankruptcy on their credit report.

Will I lose my house, car, or other property?

Normally you get to keep everything you own. A careful analysis of your property before you file is necessary to be sure you keep everything you want to keep. In some cases you have to plan ahead to time your filing to be able to do this. In some cases you may want to use the process to get rid of bad assets such as a car or house that is worth far less than you owe on it.

Why do I have to list all my property?

First, it is required by the bankruptcy code. Second, you need to do this in order to properly determine what you get to keep and if there are any problems with keeping any particular item of property.

Can I leave out a creditor or credit card; do I have to include all of my debts?

You have to list everyone you owe money to and everyone who claims you owe them money. You have some choices on how to treat different creditors once you have filed however.

If the chapter 13 trustee takes my tax refund, does this lower my payments?

No. The trustee takes the position that the refund is additional income that she is entitled to collect for the benefit of your creditors.

Can I pay off my chapter 13 bankruptcy early?

Yes.

Why is my payment so high when my income is only $x per month?

Your payment is mainly determined by how far behind you are on your house, or how much you owe on your car or truck, or how much tax debt you have. The plan has to pay that back no matter what your income level is.

Do I have to make my mortgage payments after I file bankruptcy in order to keep the house?

Yes. If you don’t you will lose the house. In spite of being told repeatedly in person and in writing that the most important thing after filing chapter 13 is to make the mortgage payments as they come due, I often hear: “I did not know I had to continue making mortgage payments after filing” or “I thought I did not have to make mortgage payments until my bankruptcy was approved”

Did you call all my creditors?

No. All your creditors get notice from the court. The way the court sends it out makes it look like it comes from my office. I only contact the creditors of immediate concern such as mortgage companies or car lenders. I normally contact them in writing by fax with proof of the bankruptcy filing. If you have a creditor that I need to contact for a particular reason I will gladly do that.

Do you have to file a pay order in chapter 13?

Yes, unless the trustee or the Court excuses this.

Will you go with me to the creditors meeting and/or to court?

I or another attorney working with me will always go with you. You will never go to either of these without an attorney.

What about student loans?

In theory they can be discharged under some circumstances. In practice, the way the courts have interpreted and applied the language of the bankruptcy code, this is almost impossible.

What impact does bankruptcy have on my tax returns and taxes?

Very little. If you have a large refund coming and you file chapter 7 you may have to turn it over to the trustee. This is an issue of timing as well as an analysis of your assets. In chapter 13 the trustee gets your tax refunds while you are in the case. In chapter 13 you must file your returns and pay your taxes on time while you are in the case.

Is the bankruptcy filing published in the newspaper?

For consumer cases almost never. In business cases it is sometimes reported in the Austin Business Journal.

Will my friends, neighbors, boss, church, school, kids know I filed?

In a chapter 13, a pay order is sent to your employer, so whoever handles payroll at your job will know. Otherwise, no one knows unless you tell them.

Ray Fisher

Call (512) 478-9810

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