Chapter 7 Bankruptcy
It is very common for people to get in over their heads with debt. Chapter 7 bankruptcy allows you to liquidate unsecured debt and start over with a clean slate.
What is a chapter 7 bankruptcy?
Unsecured debts, like credit cards, medical bills, payday loans, signature loans, repossession deficiencies, and judgments, can drag down your finances quickly. Many people will try to work their way through their own debt problems, “borrowing from Peter to pay Paul” as they say, by transferring balances to new cards to enjoy a few months of reduced interest. It is very common for people to work for years at paying off debt and just end up worse off than when you started. Chapter 7 bankruptcy can be a responsible way for you to reorganize your finances, clear your debt, and obtain the fresh start you deserve.
If this sounds like something you are interested in, please complete our online evaluation and set an appointment for a free consultation with Allmand Law today. We are one of the largest volume filers in Dallas County and dedicate ourselves to solely filing bankruptcy cases, and would be happy to assist you on your journey to financial freedom.
Benefits of 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 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 property which 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 online evaluation form.
Chapter 7 Bankruptcy Process
The process and timeline for completing a Chapter 7 Bankruptcy is usually just a couple of months.
The first step is to come into our offices for a free consultation. You will sit down with a bankruptcy attorney, who will evaluate your debt and income situation and discuss your bankruptcy options.
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 bankruptcy 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.
Filing Chapter 7 Bankruptcy
The Bankruptcy Abuse Prevention and Consumer Protection Act, passed by Congress in 2005, set limits on which consumers will be eligible to file Chapter 7 Bankruptcy. Individuals and couples are eligible to file Chapter 7 Bankruptcy if they have not received a bankruptcy discharge from a Chapter 7 filing in the past eight years or a Chapter 13 filing in the past six years.
If you meet that criteria, you must undergo a means test to determine if you have sufficient disposable income to repay some of your debts. The means test is conducted by taking your average income for the past six months and comparing it to the median household income for the area.
The means test is used to determine if there is any chance that you might be able to pay off part of your debts. It is our experience at Allmand Law 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 clients who come in for a free evaluation still qualify for Chapter 7 Bankruptcy.
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