Texas Chapter 7 Bankruptcy Lawyer
Chapter 7 Bankruptcy is the most frequently filed type of bankruptcy (65% of consumer filings), and when the word ”bankruptcy“ is mentioned, Chapter 7 comes to mind for most people. Also called liquidation bankruptcy, Chapter 7 requires liquidation of certain assets to pay creditors.
Some assets are exempt from liquidation. You have the choice of using Texas State exemptions or exemptions covered under federal statutes. Your bankruptcy attorney can help you decide which statutes best benefit your situation. Chapter 7 generally is used when you have credit card or other unsecured debt but few assets. You can keep a significant amount of exempt property through the bankruptcy process, while still discharging your debts. Typically, exempt assets include items such as your home, vehicle, home furnishings, personal effects, wages, retirement plans, and the cash value of life insurance policies.
Because Chapter 7 is reserved for individuals whose income level is inadequate for significant repayment of debts, household income level is a major consideration in Chapter 7 eligibility. If the court believes you can cope with repayment, your petition will be dismissed, and the court will advise Chapter 13 bankruptcy instead. (See Chapter 13 Bankruptcy for more information.)
There are advantages and disadvantages to filing Chapter 7, and your bankruptcy attorney can explain, advise, and help you decide which type of bankruptcy is right for you.
The main elements of the Chapter 7 bankruptcy process include:
While not a complete list, here are some debts dischargeable through Chapter 7
Chapter 7 discharge is not allowed for:
Your bankruptcy attorney can advise you on any other debts you will not be able to discharge under Chapter 7 bankruptcy. With the legal help of a bankruptcy lawyer, most Chapter 7 bankruptcies are not complicated and require only one brief appearance with the trustee at the creditors’ meeting. On average, this type of bankruptcy takes four to six months to finalize and gives debtors the opportunity for a fresh start.
Financial insolvency often seems overwhelming. The Law Office of Areya Holder understands your struggle with debt and encourages you to seek our legal guidance in dealing with financial troubles. We offer a free initial consultation to discuss whether Chapter 7 is right for you.