Chapter 7 Bankruptcy
Chapter 7 is a fast as it is finished in about 90 days. It requires no form of repayment to creditors. In order to qualify for Chapter 7 you must pass an income test called a means test. Most people in Chapter 7 keep all their assets as they are exempt.
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy allows you to discharge your debts if you qualify under the Bankruptcy Means Test. Chapter 7 bankruptcy allows you to discharge unsecured debt: including credit cards, medical bills and judgments. Certain debts such as taxes, student loans, and domestic support obligations are often not discharged. Be sure to speak with an experienced Bankruptcy Attorney to determine if your debts will be deemed to be eligible for a discharge.
Don’t let the word “liquidation” scare you. In Texas we have very strong exemption laws which allow most clients to keep all their property including: home, cars, retirement accounts, and even tax refunds. At Collins & Arnove, we offer experienced, supportive counsel to protect my clients as they enter and complete the bankruptcy process. We will review your debts and assets, as well as your income, and help you determine what bankruptcy option is right for you.
As your advocate, We will answer your questions and concerns and help you explore any alternatives to bankruptcy, when possible.
Call 972-516-4255 for a free consultation with an experienced bankruptcy attorney.
Who Should File for Chapter 7 Bankruptcy?
A typical Chapter 7 bankruptcy filer is a person who credit card debt along with other unsecured bills on which they are unable to make payments. You should consider Chapter 7 if you want to quickly eliminate all your unsecured debt and quickly build your credit score back up.
Filing a Chapter 7 bankruptcy allows you to:
— Eliminate unsecured debt will no form of repayment
— Stop creditor collection activity
–Discharge a judgment
–Keep all your property (in most cases)
–Rebuild your credit score after the Bankruptcy Discharge
Eligibility for Chapter 7 Bankruptcy
Chapter 7 Bankruptcy requires that you pass a “means test” showing that based on your current income and expenses, you are unable to pay back your unsecured creditors. Our office is experienced with the “means test” and determining eligibility. Don’t think that the means test automatically disqualifies you from Chapter 7. We have had many clients who make over $100,000 a year who are still able to qualify for a Chapter 7 Bankruptcy.