We Help Individuals in DFW and North Texas Seek a Fresh Financial Start Through Chapter 7 Bankruptcy
Are you suffering from mounting debts, relentless creditors and debt collectors, and the constant stress of financial uncertainty? If so, do not hesitate to discuss your situation with a Chapter 7 bankruptcy attorney in Dallas from our firm. Chapter 7 bankruptcy may be the right option to help you get a fresh financial start. You could eliminate most or all of your unsecured debt in just four to six months.
Dallas bankruptcy attorney Christopher Migliaccio and the team at Warren & Migliaccio can stop creditors and debt collectors from harassing you and help you move forward. Call us at (888) 584-9614 or contact us online to set up a consultation. We can devise a plan to help you obtain a fresh financial start.
Call (888) 584-9614 or click here to submit a consultation request form now.
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Call (888) 584-9614 or click here to submit a consultation request form now.
Get Help Now
What Is Chapter 7 Bankruptcy in Texas?
Chapter 7 bankruptcy is a federal court process with the purpose of helping individuals eliminate or discharge unsecured debts. Unsecured debts are debts that are not backed by collateral. They generally include debts like credit card debt, medical bills, and personal loans.
Chapter 7 bankruptcy is a liquidation bankruptcy. You liquidate non-exempt property in exchange for eliminating most or all of your unsecured debts. It is most suitable for individuals with limited income who cannot keep up with mounting financial obligations and whose primary financial burden is unsecured debts.
Many people are reluctant to file Chapter 7 because they believe it means they will lose all of their belongings in the process. However, Texas has liberal property exemption policies. In many Texas Chapter 7 bankruptcy cases, individuals do not have to sell any of their property.
We recommend consulting with an experienced bankruptcy attorney in Dallas about your unique situation. Depending on your financial situation, Chapter 7 bankruptcy may be able to offer you a fresh financial start in as little as four to six months.
Related: Top Bankruptcy Myths That Should Bite the Dust – Once and For All
What Are the Benefits of Chapter 7 Bankruptcy in Texas?
There are many benefits to filing for Chapter 7 bankruptcy. For example, the most significant benefit is eliminating most or all of your unsecured debts. You are no longer legally obligated to pay discharged debts. For example, Chapter 7 bankruptcy often wipes out the following:
- Credit card debt
- Certain personal loans
- Payday loans
- Medical bills
- Utility bills
- Home foreclosure deficiency balances
- Car repossession deficiency balances
- Unsecured court judgments
- Some taxes
Other benefits of filing for Chapter 7 bankruptcy include:
- Automatic stay. Filing for Chapter 7 establishes an automatic stay, which immediately prevents most creditors and debt collectors from collection efforts and activities. For example, an automatic stay should stop harassing phone calls, debt collection lawsuits, garnishments, and home foreclosure and car repossession proceedings for the duration of the bankruptcy case.
- Protect your property. Federal and Texas bankruptcy laws include property exemption laws that allow you to keep much of your property in bankruptcy. Examples of exempt property may include but are not limited to, your home, current wages, first vehicle, personal property up to a certain amount, and certain pensions and retirement accounts.
- Quick resolution. Chapter 7 bankruptcy typically concludes within four to six months, making it a quick route to debt relief.
Related:
How to Qualify for Chapter 7 Bankruptcy in Texas
You must pass the means test to qualify for Chapter 7 bankruptcy. The test has two parts: a median income comparison and a disposable income analysis. The test aims to determine whether you can repay some of your unsecured debt.
The first part of the test is an income comparison. You must calculate and compare your annual income to the median family income in Texas for a household your size. If your income is lower than the Texas median household income, then it is presumed that you pass the means test and qualify for Chapter 7.
If your income exceeds the median household income, you may still qualify for Chapter 7. However, you will have to go through the rest of the means test to determine whether you can repay some of your debts. To qualify for Chapter 7, you must prove that you have little to no monthly disposable income to repay your debts. If you do not pass the means test, you will likely have to pursue Chapter 13 bankruptcy or other debt-relief options.
We recommend working with an experienced Chapter 7 bankruptcy lawyer in Dallas to conduct a means test and advise you of your best legal options. Determining whether you pass the means test involves assessing your debts, income, and assets. We are happy to review your situation during a consultation.
Related: Grounds for Chapter 7 Bankruptcy Filing
How To Get Out Of Debt, Keep The House, Car, Retirement Savings, And Finally Get A Fresh Start!
How To Get Out Of Debt, Keep The House, Car, Retirement Savings, And Finally Get A Fresh Start!
Our Dallas Chapter 7 Bankruptcy Lawyers Serve Clients Across North Texas
At Warren & Migliaccio, our dedicated Chapter 7 bankruptcy attorneys represent individuals throughout the Dallas-Fort Worth area and North Texas. Our team has extensive experience and success in handling Texas bankruptcy cases. We have helped many individuals and families gain a fresh financial start through bankruptcy. For example, we often help individuals in the following counties and cities:
- Collin County: Plano, Frisco, McKinney, Allen, Murphy, and Anna
- Dallas County: Dallas, Irving, Garland, DeSoto, and Farmers Branch
- Denton County: Denton, Lewisville, Little Elm, The Colony, Corinth, and Highland Village
- Rockwall County: Rockwall, Fate, and McLendon-Chisolm
- Tarrant County: Fort Worth, Arlington, North Richland Hills, Euless, Bedford, and Keller
What Can Chapter 7 Bankruptcy Not Do for You?
Every debt relief tool has advantages and limitations. Depending on your unique situation, seeking Chapter 7 bankruptcy may not be the right option to pursue debt relief. Examples of its limitations include:
- Does not eliminate secured debts. You cannot discharge secured debts through Chapter 7 bankruptcy. Secured debts are debts backed by collateral, such as home mortgages and car loans. Creditors can still repossess or foreclose on the property to secure the debt. Therefore, if most of your financial burden comes from your mortgage, Chapter 7 will not help you keep your home. Instead, consider seeking Chapter 13 bankruptcy, which involves a repayment plan.
- Will not discharge certain types of unsecured debts. You cannot discharge certain financial obligations through bankruptcy, including, but not limited to, child support, spousal support, student loans, except in rare circumstances, and certain tax debts. Additionally, you cannot discharge any debts accrued after filing for bankruptcy.
- Does not protect cosigners. If someone has cosigned a loan with you, Chapter 7 bankruptcy does not clear them from debt responsibility. Instead, your cosigner will get stuck with the liability, and creditors can continue to seek collection from them.
Related:
- Pros & Cons of Filing Chapter 7 Bankruptcy
- What Is the Difference Between Chapter 7 and Chapter 13 Bankruptcy in Texas?
How Does Chapter 7 Bankruptcy Work in Texas?
Chapter 7 bankruptcy is a liquidation bankruptcy. A liquidation bankruptcy means you may have to sell nonexempt property in return for a discharge on most or all of your debts. The proceeds are then distributed among your creditors. Once your debts are discharged, you are no longer legally required to pay them.
Most Texans opting for Chapter 7 bankruptcy typically have few or no nonexempt items because of the state’s liberal exemption policies. In fact, in many cases, you may not have to sell any of your property.
Generally, you can expect the following process during your Texas Chapter 7 bankruptcy case:
- Bankruptcy petition. Once eligibility is confirmed, your Dallas Chapter 7 bankruptcy lawyer will help you file a bankruptcy petition with the court. Your petition involves detailed documentation of your debts, assets, income, and expenses.
- Automatic stay. Once you file the petition, an automatic stay goes into effect. It will immediately relieve you from most creditors’ and debt collectors’ collection efforts.
- Trustee assigned. The court appoints a bankruptcy trustee to oversee your case. The trustee will evaluate your assets and documentation to determine whether anything can be sold to pay your creditors.
- 341 hearing. The court will schedule a 341 hearing, also known as the meeting of creditors. You must attend this meeting with your Dallas Chapter 7 bankruptcy attorney. During this meeting, you will meet with your bankruptcy trustee and any creditors who choose to come. You may confirm and answer questions about your bankruptcy paperwork during this meeting.
- Debt discharge. Most unsecured debts are discharged at the end of the process. Overall, the process typically concludes four to six months after filing.
Schedule a Consultation With a Chapter 7 Bankruptcy Attorney in Dallas From Our Firm
Do you believe Chapter 7 bankruptcy in Texas might be right for you? Are you ready to explore your debt relief options? If so, we are here to help. Chapter 7 bankruptcy may be a viable option for you to get a fresh financial start. However, it is a technical and complicated process. Because of this, we recommend working with an experienced Chapter 7 bankruptcy attorney in Dallas to guide you through the entire process.
At Warren & Migliaccio, we can work with you to find a solution that puts you back on the road to financial recovery. During a consultation, we can answer your legal questions and help you understand your debt relief options for your unique situation. Call us today at (888) 584-9614 or contact us online, and we will be in touch with you soon.
