Filing for Chapter 7 bankruptcy in Plano TX is no small deal. In fact, it is a major life decision that can impact everything from your finances to your business for up to a decade or more. For this reason, if you are considering bankruptcy, it is best to work with an experienced bankruptcy lawyer like Collins & Arnove.
Which Debts Can Be Forgiven?
When you file for Chapter 7 bankruptcy in Plano TX, many of your debts can be paid off and forgiven. These debts include everything from credit card debts to home loans that have gone awry. Most debts can be forgiven through Chapter 7 bankruptcy (exclusions listed below).
The requirements and restrictions on bankruptcy vary state to state. Fortunately, Texas has fairly strict laws that prevent people from losing their homes, cars, and retirement bank accounts when they file for Chapter 7 bankruptcy. So if you are considering filing, you probably don’t have to worry about losing your home or your vehicle.
Working with an experienced, knowledgeable bankruptcy lawyer is the only way to be absolutely sure what you qualify for, and which debts can be paid off and forgiven. When you work with experts like Collins & Arnove, you don’t have to worry about a thing. They will work with you and delve into your finances to figure out first if you are eligible for bankruptcy, and second, which debts can be paid off via bankruptcy.
What Bankruptcy Doesn’t Get Rid Of
Bankruptcy isn’t just a simple fix – voila! And your debts are all forgiven. Nope. Typically, there are a few types of debts that you are just going to have to pay, and that bankruptcy can’t erase. Those include student loan debts, back taxes, and domestic support debts like child support. So if you are hoping to get rid of that $80,000 you have in student loan debts, it won’t work.
What Are the Consequences?
Obviously, you can’t file for bankruptcy and have your debts forgiven without any lasting consequences on your part. If it was that easy, everyone would file, and nobody would have to be responsible for their debts.
First of all, qualifying for bankruptcy isn’t as easy as many people think it is. You must complete a Bankruptcy Means Test, and you must fall within a certain score range to qualify. The test essentially calculates your current income, your expenses, and your debts to determine if you qualify for debt forgiveness, or bankruptcy. A bankruptcy typically lowers credit score significantly and impacts your financial record for seven years or more.
If you’re considering filing for Chapter 7 bankruptcy in Plano TX, call us today at (469) 808-0632 for your free consultation!
Collins & Arnove | Chapter 7 Bankruptcy Plano TX | 972-516-4255