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Answers From A Grapevine Bankruptcy Lawyer

Have you considered filing for bankruptcy? Are you facing foreclosure, a car repossession, a judgment or eviction? If so, you probably have questions about the process ahead.

It is for this reason that the Dallas and Fort Worth bankruptcy attorney at Powell Law Offices, P.C., has decided to answer some of the most commonly asked questions about Chapter 7 and Chapter 13 bankruptcy. However, if you have more specific questions about your case or you would like to explore your options with a lawyer, you should not hesitate to contact our firm to set up a confidential consultation.

What is the difference between Chapter 7 and Chapter 13 bankruptcy?
Chapter 7 bankruptcy is a process that would allow you to discharge most, if not all, of your unsecured debt in a short amount of time — typically four to six months. Sometimes, even income tax debt can be discharged, if certain circumstances exist. Oppositely, Chapter 13 bankruptcy allows for more gradual debt relief. You would be required to come up with a repayment plan that would be executed over the next three to five years. Chapter 13 bankruptcy can assist someone in catching up on a mortgage or car loan, paying back income taxes, and even with student loans.

What property can I keep when I file bankruptcy?

The answer to this question is complicated and depends on many factors, but the general answer is that in Chapter 7, you can keep your personal property such as clothing, furniture, jewelry, etc., as long as its worth is under a certain limit, and your house and car as long as you are current on the payments on those, as well as other property. In Chapter 13, there is no limit to the amount of property you can keep.

Who is eligible to file for bankruptcy?
Typically, anyone who is struggling with debt would be eligible to file for bankruptcy; however, not everyone will qualify to file under Chapter 7. To do so, you would need to prove that your current monthly income is less than the median income for a household of your size in Texas and/or that you do not have enough disposable income to repay your creditors — which would be determined by taking the means test. If you do not pass, you can still file under Chapter 13. To do so, you must have some sort of regular income, which can include Social Security, unemployment, etc.

Can I file for Chapter 7 or Chapter 13 bankruptcy more than once?
The short answer is yes; however, it is important to understand that certain restrictions will apply when you file more than once. The answer may also be different if your case was dismissed rather than discharged. If you previously filed for Chapter 7 bankruptcy, you wouldn't be able to seek a second discharge of debt until at least eight years have passed (for a Chapter 7 filing) or six years for a Chapter 13 filing. If you previously filed for Chapter 13 bankruptcy and received a discharge, you would need to wait at least four years to file under Chapter 7. If your prior bankruptcy was dismissed, you may be able to file again immediately.

Still Have Questions? Set Up A Free Confidential Consultation Today.

If you still have questions about Chapter 7 or Chapter 13 bankruptcy, do not hesitate to get in touch with a Dallas and Fort Worth bankruptcy lawyer at Powell Law Offices, P.C. Ms Powell has been representing individuals and families throughout Texas for more than a decade, so you can trust that we have the experience and legal knowledge to assist you in working toward a debt-free future. Call now!

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.