Chapter 7 Bankruptcy

What is a Chapter 7 bankruptcy?

A Chapter 7 bankruptcy is the most common type of bankruptcy. It is for individuals and small businesses who are overwhelmed by debt and unable to pay their bills. In a Chapter 7 bankruptcy you may be able to permanently eliminate, or discharge, certain types of debt, including credit cards, payday loans, and medical bills, which allows you to have a fresh start.

You may have heard a Chapter 7 bankruptcy called a straight bankruptcy or a liquidation. Many people have heard stories about debtors losing assets in a Chapter 7 bankruptcy. It is true that in certain cases, the court can sell off non-exempt property to partially repay creditors in a Chapter 7 bankruptcy. What property you are allowed to keep depends on state law. Here, in Texas, many types of property are exempt. Individuals and families may keep their home, cars, personal belongings, retirement accounts, bank accounts, boats, rental properties, and other items as exempt. The vast majority of Chapter 7 bankruptcies in the State of Texas do not lose any assets.

In my experience as a Waco bankruptcy attorney, I have filed hundreds of cases where the individual and family are able to keep everything. Some of these people had second properties, more than two vehicles, a boat, timeshare, and other assets. You need an experienced attorney who can help ensure you and your assets are protected. If there is a problem with one of your assets, we will work together to find a solution. The important thing is to be honest and let your experienced attorney help you.

For most individuals and families, Chapter 7 bankruptcy is the fastest and most cost-effective means to allow you to start living your life again with your fresh start. Call 254-870-0105 or email me at [email protected] today for your FREE no-obligation consultation to answer your questions.

Do I qualify for a Chapter 7 bankruptcy?

A Chapter 7 bankruptcy is the fastest and typically the easiest way to get you back to living your life in Central Texas. However, many people aren't sure if they qualify because they have heard rumors about Chapter 7 bankruptcy and who is eligible for a Chapter 7 bankruptcy. As a locally owned Waco bankruptcy firm, we can offer you a FREE no-obligation consultation. We are often able to place people in a Chapter 7 bankruptcy when most of the other Waco Bankruptcy firms would have put the same individual in a Chapter 13 bankruptcy for 3 to 5 years. We do this because we want you to succeed. We want what is best for our clients and we do not want to place them in a Chapter 13 that would fail because they should have been in a Chapter 7 and been successful. Your success is our success.

Rumor #1: I am current on all my debt, so I don't qualify for bankruptcy.

Truth: Some people who file bankruptcy are current on their debt and some are behind. Whether you are current or past due does not affect your ability to file bankruptcy.

Rumor #2: I don't owe enough money to file bankruptcy.

Truth: There is no minimum debt requirement before you can file bankruptcy. As a Waco bankruptcy attorney, I have filed bankruptcy for people who have owed over $100,000.00 to credit cards and people who have owed as little at $10,000.00 to credit cards. Bankruptcy is about getting a fresh start. If you only make $20,000.00 a year and you owed $8,000.00 in credit cards, you need and deserve a fresh start.

Rumor #3: I make too much money to file bankruptcy.

Truth: In 2005, bankruptcy law changed dramatically. One of the most talked about changes is the "means test". The means test is a bankruptcy test designed by Congress to compare the last 6 months of income of someone who is filing bankruptcy to the last 6 months of income of families the same size in the same county. If you are over the median income for families the same size in the same area there is a presumption that you are unable to file a Chapter 7 bankruptcy. However, an experienced bankruptcy attorney who is experienced with the new bankruptcy laws can and do file over the median Chapter 7 bankruptcies all the time. The first Chapter 7 bankruptcy I filed was for a family that was over the median. I worked with them to overcome the presumption and they had a typical Chapter 7 bankruptcy. They have received their discharge and are living their fresh start. So are many other over the median Chapter 7 bankruptcies that I have filed. These are people that other attorneys and firms would have filed as a Chapter 13 bankruptcy and I found a way to file a Chapter 7 bankruptcy for them. While not everyone who is over the median can overcome the presumption and file a Chapter 7 bankruptcy, an experienced bankruptcy attorney can help you determine if it is possible.

If you need help with overwhelming debt, please call today at 254-870-0105 or email me at [email protected] for a FREE, no-obligation consultation with an experienced Waco bankruptcy attorney.