Bankruptcy

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is sometimes referred to as liquidation because all non-exempt assets are sold. This money is then distributed among creditors and any other entities to which you may owe an outstanding debt.

 

But for most people, all of their assets are exempt, which means protected from liquidation. Additionally, in a Chapter 7 bankruptcy, certain debts incurred prior to filing are completely discharged, such as credit card debt. Some types of debts that may not be discharged include but are not limited to:

  • child support (arrears and current);
  • student loans (unless hardship can be proven);
  • recent income tax debts;
  • fines and penalties for law violations; and
  • debts owed as a result of divorce (in some cases).

Essentially, this type of bankruptcy allows a debtor to start over from a financial standpoint. If you have high, revolving unsecured debt and can demonstrate an inability to repay, this may be a viable option. While some assets are exempt from liquidation, Théda will explain how filing for Chapter 7 may impact the assets you own and help you weigh the benefits and consequences. For example, you may be able to select certain assets (ie. houses and cars) for reaffirmation.

Chapter 13 Bankruptcy

Chapter 7 bankruptcy is sometimes referred to as liquidation because all non-exempt assets are sold. This money is then distributed among creditors and any other entities to which you may owe an outstanding debt.

 

But for most people, all of their assets are exempt, which means protected from liquidation. Additionally, in a Chapter 7 bankruptcy, certain debts incurred prior to filing are completely discharged, such as credit card debt. Some types of debts that may not be discharged include but are not limited to:

  • child support (arrears and current);
  • student loans (unless hardship can be proven);
  • recent income tax debts;
  • fines and penalties for law violations; and
  • debts owed as a result of divorce (in some cases).

Essentially, this type of bankruptcy allows a debtor to start over from a financial standpoint. If you have high, revolving unsecured debt and can demonstrate an inability to repay, this may be a viable option. While some assets are exempt from liquidation, Théda will explain how filing for Chapter 7 may impact the assets you own and help you weigh the benefits and consequences. For example, you may be able to select certain assets (ie. houses and cars) for reaffirmation.

Questions

Do you charge a consultation fee?

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What is the purpose of bankruptcy?

The primary purpose of claiming bankruptcy is to release debtors of liability from particular debts and give them a financial fresh start.

Do I need an attorney to deal with creditors or a bankruptcy?

The short answer is no, however, dealing with a bankruptcy and/or collections is a very complex legal process. You should be represented by a qualified attorney.

What if I can’t afford an attorney?

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Does bankruptcy hurt my credit?

Bankruptcy clears you of your debts and allows you to start rebuilding your credit. The longer you are in default on payments the more your credit will be impacted.

Will I lose my house?

The most common use of bankruptcy is to stop foreclosure and thereby save your home through the medium of a chapter 13 bankruptcy case.

For more information contact me to schedule a consultation

Free 15 minute consultation
Phone: 940-757-0333
Fax: 940-400-0064
1332 Teasley Lane Suite 150
Denton, TX 76205