How to File for Bankruptcy During a Divorce in Texas

Filing for bankruptcy during a divorce in Texas can be arduous, as you will be initiating another legal proceeding in addition to your divorce. One benefit of filing a bankruptcy during a divorce in Texas is the automatic stay that goes into effect upon the filing of the bankruptcy case. The automatic stay halts all activity in your divorce except for proceedings regarding spousal support and dissolution of the marriage.

Instructions

1. Navigate to the United States Courts website to obtain the necessary bankruptcy forms. Fill out the Voluntary Petition, including your name, address, the chapter of your bankruptcy. Most individuals should file for Chapter 7 bankruptcy, however, Chapter 13 is a viable option. You should consult an attorney regarding the best chapter for your financial situation. Sign the Voluntary Petition. In order to file for Chapter 7 bankruptcy, you must meet the income limitations, known as the "means test." For example, your income cannot exceed $37,676 in Texas if you are a single-earner household.

2. Fill out the Cover Sheet for Schedules, Schedules A through J, Declaration Concerning Schedules, and Statement of Financial Affairs. Within the Schedules, you must list all of your debts, assets, income, expenses and creditors. Within the Statement of Financial Affairs, you must describe your income, financial transactions, and businesses, among other financial details. Make sure to disclose your divorce proceeding within the Statement of Financial Affairs. Sign all documents, including the Declaration Concerning Schedules which authenticates the Schedules.

3. Fill out the Chapter 7 Statement of Current Monthly Income and perform the mathematical calculation to determine your annualized income. Fill out Exhibit D to the Voluntary Petition after taking the required credit counseling course. Credit counseling course suggestions can be obtained from the clerk of the court. Consult an attorney regarding whether you need to fill out any other specialized bankruptcy documents.

4. Notify your spouse and your spouse's attorney of the bankruptcy filing in writing. Take the documents to the clerk of the bankruptcy court for filling. Pay the required filing fee to the deputy clerk. A Chapter 7 costs $299 and a Chapter 13 costs $274, as of the time of publication.

Tips & Warnings

• Joint debts between husband and wife are only discharged in bankruptcy for the spouse who files bankruptcy. This means that creditors can seek payment of joint debts from the non-filing spouse.

• This article does not constitute legal advice. See an attorney.

References

• "Bankruptcy and Debtor/Creditor Examples and Explanations"; Brian A. Blum; 2010
• "West's Bankruptcy Code, Rules, and Forms"; Thomson West; 2010
• "Collier on Bankruptcy"; Alan N. Resnick, Henry J. Sommer; 2010
• Bankruptcy Law Network: Means Test
• United States Bankruptcy Court, Northern District of Texas: Filing Fees

Resources

• United States Courts: Bankruptcy Forms