Topics Covered:
Richardson, TX Chapter 7 Bankruptcy & the Liquidation of High-Value Assets
Debt That Cannot Be Discharged & Richardson (Dallas), TX Chapter 7 Bankruptcy Requirements
Mesquite, TX Bankruptcy & Your Credit
Is a Richardson, TX Chapter 7 Bankruptcy Right For You?
Bankruptcy is a way to wipe the slate clean and give you a fresh start by eliminating as many of your debts as possible. This is either done through liquidation of all debts owed or through the repayment of your creditors based on a schedule that you can handle. The two most common forms of Richardson, TX bankruptcies are Chapter 7 (liquidation) and Chapter 13 (scheduled repayment/reorganization).
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Chapter 7 Bankruptcy & the Liquidation of High-Value Assets
Chapter 7 is referred to as a liquidation bankruptcy because oftentimes your high-value assets may be sold to help repay your debts. In most cases you will be allowed to have a 'clean slate' immediately, without repaying your debt out-of-pocket. So any money that you make or inheritances that you acquire, after you have filed your Richardson (Dallas), TX bankruptcy petition, are yours to keep. The exception is when you have secured property that you have signed a Reaffirmation Agreement for.
With a Richardson, TX Chapter 7 Bankruptcy, you may also be able to exempt some of your property from being liquidated. Your Richardson, TX homestead and some personal property can survive the liquidation, which will allow you to keep them; however, the amount of property that you are allowed to keep will vary depending on your circumstances. For instance, a family with two licensed drivers will be able to exempt two vehicles, while a family with one licensed driver will only be able to exempt one vehicle. All other high-value assets may be included in the liquidation and sold in order to repay your debts.
Debt That Cannot Be Discharged & Richardson (Dallas), TX Chapter 7 Bankruptcy Requirements
There are some types of debt that cannot be discharged at all, including:
- Child support
- Recent taxes & tax penalties
- Student loans
- Restitution for crimes committed against others
Also, there are income requirements that must be met in order for you to file for a Richardson, TX Chapter 7 Bankruptcy. You must make less than the median Texas income (within the previous 6 months prior to filing you petition) or prove that you do not have the income necessary to pay your current bills plus your outstanding debt.
Bankruptcy & Your Credit
It is important to remember that a discharged bankruptcy will stay on your credit report for 6-10 years. Because of this many lenders will be afraid to give you credit, but there are steps that you can take to repair your tarnished credit rating. Even though having this blemish listed on your credit report is one of the adverse effects of a Richardson, TX bankruptcy, you will still get the fresh start that you deserve and a chance to get your life back on track.
Understanding the difference between a Richardson, TX Chapter 7 bankruptcy and a Richardson, TX Chapter 13 bankruptcy is the first step in your process of becoming debt-free. An experienced Richardson, TX lawyer can evaluate your situation and help you decide which type is right for you.
At Allmand and Lee, we have experienced bankruptcy attorneys who can help you down this hard road and on toward a better future. Please fill out our free and confidential evaluation form to see how we can help you. We have helped thousands of others resolve their financial crisis and get through this tough situation, and we can help you too.
Topic: Richardson (Dallas), TX Chapter 7 Bankruptcy Right For You?