Bankruptcy Glossary -- San Antonio Terms Explained

This page provides general educational information, not legal advice. Consult a qualified attorney for advice about your specific situation.

A-D

Automatic Stay

Federal court order stopping collection, foreclosure, repossession instantly upon filing. See Automatic Stay.

Chapter 7

Liquidation bankruptcy. Texas generous exemptions mean most filers keep everything. 3-4 months. See Chapter 7.

Chapter 13

Repayment plan, 3-5 years. W.D. Tex. 62.6% dismissal rate. See Chapter 13.

Community Property

Texas doctrine: most property and debts acquired during marriage belong equally to both spouses.

Cram Down

Reducing a secured debt to collateral value. Vehicle loans older than 910 days can be crammed down in Chapter 13.

Discharge

Court order eliminating personal liability. Protected by the discharge injunction (section 524).

E-M

Exemptions

Texas: unlimited homestead, vehicle if needed for work, $100K personal property (family), unlimited retirement. No federal option.

Homestead

Unlimited value, 10 acres urban / 100 acres rural. Among the best in the nation.

Means Test

Income formula for Chapter 7 eligibility. Texas 1-person median: $60,840.

Non-Judicial Foreclosure

Texas foreclosure method. No court needed. Can happen in ~21 days. Emergency filing may be the only way to stop it.

N-Z

No-Asset Case

Chapter 7 case with nothing for the trustee to sell. The vast majority of Texas cases thanks to generous exemptions.

Reaffirmation

Voluntary agreement to keep paying a dischargeable debt to retain collateral (usually a vehicle).

Trustee

Court-appointed administrator. Ch. 7 trustee looks for non-exempt assets. Ch. 13 trustee distributes plan payments.

Frequently Asked Questions

What is the automatic stay?

Federal court order stopping collection, foreclosure, repossession instantly. Section 362.

What is community property?

Texas doctrine: most property and debts during marriage belong equally to both spouses.

What is the homestead exemption?

Texas: unlimited value, up to 10 acres urban / 100 acres rural. Your home is fully protected.

What is the means test?

Income formula comparing your income to Texas median ($60,840 for 1 person) to determine Chapter 7 eligibility.

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