Bankruptcy Attorney in Palestine, TX
Rediscover Financial Stability
Facing financial hardship can feel isolating, but bankruptcy is often the first step toward stability, not the end of your financial story. With the right guidance, it can give you the opportunity to reset, protect what matters most, and move forward with confidence.
At the Law Office of Richard H. Hughes, we help individuals and families in Palestine, TX, explore practical debt relief solutions. Whether you’re dealing with mounting bills, aggressive creditors, or the threat of legal action, Richard Hughes offers experienced advocacy focused on long-term financial recovery.
Take the first step toward relief with a free consultation.
A Palestine Bankruptcy Lawyer Who Cares
IRS Tax Debt
IRS notices and collection efforts can be intimidating. Richard Hughes can step in to protect your rights and work toward a manageable resolution.
Tax Relief Wage GarnishmentBankruptcy
If debt has become unmanageable, Richard Hughes can help you find a true financial reset. Our office provides experienced representation throughout the bankruptcy process.
Learn MoreMedical Debt
Unexpected medical expenses can create serious financial strain. Our office helps clients address medical bills and pursue options to reduce or resolve healthcare-related debt.
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Debt Consolidation
Simplifying multiple debts into one manageable payment can make a major difference. Reach out to our office to learn whether debt consolidation is the right solution for your financial situation.
Foreclosure Defense
Facing foreclosure can feel overwhelming, but it doesn’t have to mean losing your home. Richard Hughes uses proven legal strategies to protect your rights and explore options to keep you in your house.
Credit Card Debt
High-interest credit cards can quickly spiral out of control. Richard Hughes helps clients reduce balances and regain stability, often without the need to file for bankruptcy.
Chapter 7 vs. Chapter 14 Bankruptcy
When considering bankruptcy, the most common options are Chapter 7 and Chapter 13. The key difference comes down to how your debt is handled, either discharged entirely or repaid through a structured plan over time.
Chapter 7 bankruptcy focuses on eliminating qualifying debts, giving many people a fast financial reset. Chapter 13 bankruptcy, on the other hand, allows you to reorganize what you owe into manageable monthly payments while keeping your property.
If you’re unsure which option fits your situation, Richard Hughes can explain the differences and help you choose the path that best supports your financial future in Palestine, TX.
About Chapter 7 Bankruptcy About Chapter 13 Bankruptcy
We’re Here to Help You Understand Bankruptcy Laws
Under federal law, you might be able to stop:
- Repossessions
- Lawsuits
- IRS Garnishments
- Foreclosures
- Creditor Harassment
- Levies
The Debt Relief Lawyer for Palestine, TX
If debt has taken over your life and monthly payments feel impossible to manage, you don’t have to face it alone. Richard Hughes has helped thousands of East Texans regain control of their finances and move forward with confidence.
Whether you’re exploring Chapter 7, Chapter 13, or simply need help understanding your options, our office is here to guide you toward a solution that makes sense for your goals and circumstances.
Frequently Asked Questions
What is bankruptcy?
Bankruptcy is a federal legal process designed to help individuals and businesses eliminate or restructure debt when repayment is no longer manageable.
Do I qualify to file for bankruptcy?
Eligibility depends on the chapter you file under.
For Chapter 7 bankruptcy
- A six-month average of your income must be lower than the median household income of similar size.
- You must not have filed for Chapter 7 bankruptcy for 8 years and Chapter 13 bankruptcy for 6 years.
- You must wait 181 days before filing if you filed for bankruptcy and it was thrown out.
- Typically, you must attend a credit counseling course within 180 days of filing for Chapter 7.
To qualify for Chapter 13 bankruptcy
- You must have sufficient income to make monthly debt repayments
- Your unsecured debts (credit cards, medical bills) must be less than $465,275.
- Your secured debts (mortgage, cars) must be less than $1,395,875.
- You must provide 4 years of state and federal tax returns.
- You must finish an approved credit counseling course, typically within 180 before filing.
What is the difference between Chapters 7, 13, and 11?
Chapter 11 is typically reserved for businesses or high-income individuals. Chapters 7 and 13 are more common for individuals. Chapter 7 clears unsecured debts, while Chapter 13 spreads repayment over time.
Do I need a lawyer to file for bankruptcy?
You’re not legally required to hire an attorney, but bankruptcy is complex, and mistakes can be costly. An experienced lawyer can protect your assets, ensure accurate filings, and represent you in court if needed.
Do I have to give up all of my property?
No. Texas offers strong exemption laws that may protect your home, vehicle, retirement accounts, and personal property. Non-exempt assets may require alternative strategies, such as Chapter 13.
Can I save my home?
Yes. Filing for bankruptcy can temporarily stop foreclosure. If you’re behind on mortgage payments, Chapter 13 may allow you to catch up on missed mortgage payments over time.
What debts are covered by bankruptcy?
Unsecured debts like credit cards and medical bills are commonly discharged. Certain tax debts may also qualify. However, secured debts, such as your home or vehicle, usually can’t be discharged.
Will creditors still come after me?
No. After you file your case with the U.S. Bankruptcy Court, an automatic stay goes into effect. This stay requires creditors to immediately stop all collection efforts, including foreclosure actions, repossessions, lawsuits, and collection calls.
Can I pay some debts and discharge the rest?
No. Bankruptcy requires you to list all of your debts. You are not allowed to continue paying some creditors while discharging others. The process applies to your entire financial situation.
Does my spouse also have to file for bankruptcy?
If you and your spouse share joint debts, filing together is often necessary. However, if debts are spread between you and your spouse, it may be possible for one spouse to file individually in order to protect certain assets.
Can I file for bankruptcy if I’ve previously filed?
Yes, filing bankruptcy more than once is allowed. However, whether you qualify again depends on the type of bankruptcy previously filed and how much time has passed since that case was completed.
Our bankruptcy attorneys can review your filing history and help determine the best path forward.
Will everyone know that I filed for bankruptcy?
Bankruptcy filings are part of the public record and can be accessed by anyone who requests them. That said, most people never search bankruptcy records, and doing so typically requires time and effort.
Will my credit recover after bankruptcy?
Bankruptcy can provide a financial reset. While your credit score may drop initially, it can gradually improve over time if you manage your finances responsibly and make payments on time moving forward.