Chapter 7 bankruptcy provides one of the fastest means of getting a fresh financial start. It is designed at eliminate your debt in just a few months, typically four to six months.
Benefits of Chapter 7 Bankruptcy is very effective at completely wiping out common debts such as:
- Credit cards
- Most personal loans
- Money owed resulting from Repossessed cars deficiencies
- Money owed resulting from Foreclosed homes deficiencies
- Pay Day Loans
- Utility bills
- Medical bills
- Some Taxes (consult with an experienced bankruptcy attorney to determine which taxes are eligible to be eliminated)
How Chapter 7 Works
Chapter 7 bankruptcy involves the sale (liquidation) of debtor’s non-exempt assets. The proceeds are distributed to the debtor’s various creditors according to the priorities established in the Bankruptcy Code . Most Texas Chapter 7 debtors tend to have little non-exempt property due to Texas’s liberal exemption laws. In the vast majority of cases, the debtor has no assets he or she will lose in a Chapter 7 bankruptcy.
Chapter 7 provides the debtor the opportunity to give up all nonexempt property in exchange for receiving a discharge on most of his or her debts. This means that you no longer are liable to pay those debts. However, some debts like student loans and past-due child support payments are not dischargeable.
Who can file for Chapter 7 Bankruptcy?
There is a Means Test that must be passed to qualify for a Chapter 7. The Means Test looks at your debts, income and assets to determine if you qualify. Debtors who fail the Means Test have to file Chapter 13 Bankruptcy or may consider another avenue outside bankruptcy. The fastest way to determine if you pass the Means Test is to talk with an attorney and provide the attorney with some basic financial information.
Find out how Warren & Migliaccio can help you change your life and get the financial freedom. Contact us TODAY for a FREE CASE EVALUATION.