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Get A Fresh Start With Chapter 7 Bankruptcy

Consumers who wish to file for bankruptcy have two options: Chapter 7 or Chapter 13. Chapter 7 is also known as "liquidation bankruptcy" because individuals who file must liquidate any nonexempt property and assets to repay as much of their debt as possible. This is one downside to Chapter 7 bankruptcy, but there is more to this type of bankruptcy that might make it beneficial for your individual case.

Understanding Chapter 7 Bankruptcy

Before you can file for Chapter 7 bankruptcy, you must first pass the means test. This test deducts your living expenses such as food, clothing and rent from your net income to determine how much disposable income is left.

If your disposable income is less than the median income in your state, you can file for Chapter 7. If your disposable income is above the median, but is unsteady or insufficient to make monthly payments, you might still qualify for Chapter 7. A Grapevine bankruptcy attorney from Powell Law Offices, P.C., can review your case at no cost to help you determine your eligibility.

Liquidation, Exempt Property And Paying Off Debts

Should you decide to file under Chapter 7, you will be required to hand over any nonexempt property to a trustee for liquidation. What property is and is not exempt depends on if you choose to follow state exemptions or federal exemptions. You may be able to keep your home under the Texas homestead exemption, which allows you to exempt an unlimited value on your home, but it has acreage limits. Federal exemptions have a value limit that makes it difficult to keep your home.

Benefits Of Chapter 7

Although you may lose your home or other valuable property to liquidation, Chapter 7 bankruptcy has many benefits. The biggest benefit is that you will eliminate your excessive debts and be able to rebuild your finances from the ground up. Once you have completed Chapter 7 bankruptcy, you will no longer have your debt hanging over your head, but will instead have peace of mind and the ability to afford payments and rebuild your credit.

Hire A Bankruptcy Lawyer For The Help You Need

Powell Law Offices, P.C., understands the intricacies of bankruptcy and can answer any questions you have. Lauren Powell works one on one with clients, which means you will have direct access to your lawyer at all times instead of having to go through a secretary or paralegal. We are proud of our client commitment and will keep you informed and confident. We also offer a free bankruptcy case evaluation for each client, so schedule your consultation right away. The sooner you hire a lawyer, the sooner you can find relief from your overwhelming debts. Contact us today!

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