Understand the Basics of Chapter 7 Bankruptcy Plano TX

Chapter 7 Bankruptcy Plano TXChapter 7 bankruptcy in Plano TX is one of the most common forms of filing personal bankruptcy. This kind of bankruptcy is regularly used because it enables the filer to discharge the majority of their debt, usually within three to six months. Chapter 7 bankruptcy is often referred to as liquidation bankruptcy because this specific form of bankruptcy involves liquidating your assets in order to pay off as much of your debt as possible in one fell swoop. There are still certain debts that by law cannot be discharged even after filing bankruptcy, but the majority of the debt will be resolved through Chapter 7. When trying to decide if Chapter 7 bankruptcy is the right option for you, you need to balance the benefits and the drawbacks.

The major benefit to filing Chapter 7 bankruptcy in Plano TX is, of course, discharging your debt. The Chapter 7 process enables you to file bankruptcy, declaring that you are unable to completely pay off the debts that you have accumulated. As part of this procedure the court will liquidate all non-exempt property. However, things like your house, your car, and other fundamentals are considered exempt from the process. The court then functions as the person’s intermediary, taking the money garnered from the sale of property and distributing that among the creditors in such a way that they agree the debt you owe them can be discharged.

On the other side, Chapter 7 bankruptcy in Plano TX is still bankruptcy. Filing for Chapter 7 can remain on your credit report for up to ten years, preventing you from getting a mortgage or filing for another kind of loan even years after you have successfully completed your bankruptcy. At the same time, there are certain kinds of debts that cannot be discharged. The most prominent of these debts are usually student loans, and they cannot be expelled through filing bankruptcy. In order to best juggle the pros and cons of filing Chapter 7 bankruptcy it is in your best interest to consult with a bankruptcy professional who can help you understand how those benefits and drawbacks will play out in your current financial predicament, and in your financial future. Collins and Arnove has the experience you need to better understand how Chapter 7 bankruptcy will affect you now, and in the future. That understanding will enable you to make the best decision for you, and make it one that you won’t regret.  Contact them at http://ntb.wpmudev.host to find out more about how they can help you decide.

Collins & Arnove | Chapter 7 Bankruptcy Plano TX | 972-516-4255