Chapter 7 Main Topics:
What is Chapter 7 Bankruptcy?
What are the Benefits of Chapter 7 Bankruptcy?
Who Can File for Chapter 7 Bankruptcy?
How Long Does a Chapter 7 Bankruptcy Last?
Can I keep my property in Chapter 7 Bankruptcy?
How much does it cost to file a Chapter 7 Bankruptcy?
How does Chapter 7 Bankruptcy affect my credit?
What is Chapter 7 Bankruptcy?
Chapter 7 is a form of bankruptcy that allows you to liquidate your unsecured debt. Common examples of unsecured debts are credit cards, medical bills, payday loans, signature loans, repossession deficiencies, and judgments. If you stop paying unsecured debt there is not any property that the creditor can take from you because there is no collateral. It is very common for people to get in over their head with credit card debt while shifting balances from one card to another. You’ve probably experienced it yourself. The lure is enticing with zero percent interest and free money. You would file Chapter 7 after you have exhausted all of your non bankruptcy options. However, it is all too common for people to make minimum payments for years, and attempt to work with their creditors, just to find themselves no worse off than when they started. Therefore, Chapter 7 Bankruptcy is a responsible way for you to reorganize your finances, liquidate your debt, and achieve the fresh start you deserve. If this sounds like something you are interested in, please complete our 
form and set a free consultation with Allmand & Lee today.
What are the benefits of a Chapter 7 Bankruptcy?
The most common benefit of a Chapter 7 Bankruptcy is the speed in which you can achieve a fresh start. There are no payments to your creditors. You simply work with a qualified attorney, like those at Allmand & Lee,to prepare the necessary bankruptcy schedules and file your case. One advantage of filing Chapter 7 Bankruptcy provides you with a complete liquidation of your debt within four to six months of the filing of your case. Another distinct advantage of Chapter 7 Bankruptcy is that creditors are required to comply with the bankruptcy code and must stop the following actions: harassing collection calls, garnishment of wages, pursuit of judgments through lawsuits, repossession and foreclosure. A third advantage of Chapter 7 Bankruptcy, which is often overlooked, is that your credit could potentially be rebuilt faster after filing a Chapter 7 Bankruptcy than by not filing at all. Furthermore, many people are surprised that they are actually able to keep all of their propertywhich can include your house, cars, retirement accounts, cash, and all household goods and furnishings. If you would like more information on how you can pursue Chapter 7 Bankruptcy, please fill out our form.
Who can file for Chapter 7 Bankruptcy?
Individual consumers are eligible to file a Chapter 7 Bankruptcy provided they meet the following criteria:
All Debtors filing Chapter 7 Bankruptcy must pass a means test. The means test is a form that compares the Debtor’s income and expenses to the national IRS standards. This form is best completed by a skilled and qualified attorney. It is our experience that Debtors who previously qualified under the old bankruptcy laws, still qualify with the new bankruptcy laws. In fact, more than 96% of potential bankruptcy Debtors still qualify for Chapter 7 Bankruptcy. If you would like to see if you qualify, please fill out our
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In addition, Debtors are only eligible to file for Chapter 7 Bankruptcy and receive a discharge of their debts eight years after a prior chapter 7 discharge. Find out if you can file by taking our
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What is the timeline for Chapter 7 Bankruptcy?
Chapter 7 Bankruptcy only takes a few months to complete. The first step is to come into our office for a free consultation. Our experienced bankruptcy attorneys will sit down with you face to face. They will evaluate your debt and income situation as well as provide you with options for your unique situation. After that consultation, if Chapter 7 Bankruptcy is right for you, you will work with our office to prepare your bankruptcy petition. We will then carefully review your case and ensure that we have all the necessary documents to provide to the Court. Once everything is in order, we will then file your case. After your case is filed you can expect to attend a bankruptcy conference with your assigned Chapter 7 Trustee. This meeting normally lasts five to ten minutes. It is not in a courtroom or in front of a bankruptcy Judge. Within two or three months from the meeting you can expect to receive your discharge. A discharge is the court order that eliminates your legal obligation to pay a debt. There are two online courses that you will need to complete, namely credit counseling and financial management. Our office provides in-office computers for you to use, as well as personal assistance from our staff. One course will be taken prior to the bankruptcy being filed and the second course is taken after the case is filed. If you would like to schedule a free consultation, please submit your personal information through our .
Can I keep my property in Chapter 7 Bankruptcy?
One of the biggest myths about Chapter 7 bankruptcy is that you are going to lose all of your property. In reality Texas is one of the friendliest states, allowing you to keep all of your property. The legal term that provides this protection of your property is as an exemption. As a resident of Texas you will have the option to use all of the exemptions under the Federal Statute and some special, state specific, exemptions that you may have heard of. Texas allows you to exempt the equity in your homestead. The reality is that vast majority of all bankruptcy filers keep all their property in Texas. Although the property is exempt, if you want to keep the property and you still owe money on it, you will have to continue to pay for it. Chapter 7 Bankruptcy provides you the means to reaffirm the debt and continue making payments on it. At the completion of the payment plan, the title, or lien, will be released and you will own the property free and clear. If you are interested to see if you will be able to keep all your property and how exemptions affect you, please complete our form.
How much does it cost to file for Chapter 7 Bankruptcy?
There are certain fees associated with every Chapter 7 case. The Court charges a $299.00 filing fee which is paid to the court. There is also a fee for the Credit Counseling Course and Financial Management Course. The fees for these courses depend on the provider and can range from $35.00 to $50.00 per course. The cost of filing a Chapter 7 Bankruptcy is an important consideration. We at Allmand and Lee are sensitive to our client’s situation and understand if they had excess funds, they probably would not be calling us for help. Therefore, with that understanding, we will work with any budget. We determine our attorney fees based on the individual facts in each case. It is our experience that the best way to set attorney’s fees is after a full and thorough evaluation of all the client’s debts and assets. We can accomplish this analysis for you once you have completed our aand visit personally with one of our qualified attorneys.
How does Chapter 7 Bankruptcy affect my credit?
Many Debtors are surprised when they learn it is possible to actually have a higher credit score within one year after completion of a Chapter 7 bankruptcy than if they had not filed. The truth is that bankruptcy is a negative reflection on your credit; however it is not the only factor creditors use when making a lending decision. Some of the positive effects that you will experience upon completion of your bankruptcy are as follows:
- First, all of your eligible unsecured debt will be discharged. Therefore your debt to income ration will be much improved.
- Second, the negative payment history that is being used against you when creditors making lending decision will be gone, and the line items on your credit report will show “Discharged in Bankruptcy.” Everyday that you put between the discharge of your case and the rest of your life, will continue to improve your credit score.
- Third, by continuing to make payments on the secured debts that you have elected to keep, such as a house or car, will establish a positive payment history. Most of my clients experience the ability to purchase a new home or car within one year of their bankruptcy discharge. It is also common to receive credit card offers right after you are discharged. Much is made about the fact that the bankruptcy discharge will appear on your credit for up to ten years after your bankruptcy, but the fact that bankruptcy appears on your credit does not mean that you will not experience positive lending opportunities.
To learn more about how you can improve your credit please complete our form or set a free consultation today.
Topic: Chapter 7 Dallas Bankruptcy Attorney