If you’re filing for personal bankruptcy, the bankruptcy code provides two main options: Chapter 7 and Chapter 13. If you want a “straight” bankruptcy wherein you allow the bankruptcy court to liquidate your assets in order to pay back your creditors, the bankruptcy chapter for you is Chapter 7, also known as liquidation bankruptcy.

Going through this bankruptcy process allows you to pursue debt relief by eliminating almost all of your debts after your bankruptcy trustee sells some of your personal property and uses the proceeds to pay off one creditor after another.

How Can a Chapter 7 Bankruptcy Help You?

The following are the most known benefits of declaring bankruptcy under Chapter 7:

  1. A Way out of Debt

Federal bankruptcy law regulates bankruptcy proceedings, which in Chapter 7 bankruptcy cases result in the virtual elimination of unsecured debt. Unsecured debts are those that do not have collateral attached to them, e.g. store charge card or credit card debt, medical bills, and personal loans.

  1. Bankruptcy Protection

Filing bankruptcy triggers the automatic stay, which effectively halts the collection efforts of creditors, collection agencies, and other debt collectors. All attempts to collect the debt, from phone calls and letters to wage garnishment and mortgage liens, must be stopped. This gives a debtor some breathing space while he or she works out her financial problems and plans for a better financial future.

  1. Credit Negotiation Tool

Bankruptcies have a way of softening the stance of unbending creditors. A debt collector is more willing to negotiate and strike a deal in the face of an impending bankruptcy discharge and the possibility of ending up with nothing. This kind of negotiation, however, can get tricky, so it is best handled by an experienced bankruptcy attorney.

How Can a Bankruptcy Lawyer Help You?

bankruptcy chapter 7While engaging the services of a lawyer is not required, bankruptcy filers are encouraged to hire legal help so they can be advised and guided on their bankruptcy filing toward the best possible results. An attorney who specializes in bankruptcy law can help a bankrupt client make informed decisions throughout the process. 

How can you benefit from getting legal assistance?

  • You can better understand the different bankruptcy options and how the means test works so that you can have an idea of what assets you could lose and how the bankruptcy petition could turn out for you.
  • You can be guided on how to file for bankruptcy properly, by filling out bankruptcy forms and collecting accompanying documents so that you avoid unfortunate mistakes.
  • You can be counseled on the different bankruptcy exemptions available to you so that you end up choosing which ones best suit your bankruptcy case.
  • You can count on support and representation throughout your bankruptcy journey.

Considering a Chapter 7 Bankruptcy? Contact a Texas Bankruptcy Attorney Today!

The decision to declare bankruptcy is a serious one. Let us advise you on the best solutions to your situation and help you take action. Call us at Allmand Law Firm, PLLC to speak with a skilled and experienced bankruptcy lawyer about your case.