Chapter 7 Bankruptcy

What is Chapter 7 Bankruptcy?

Acker Warren, P.C. represents people and businesses who need Chapter 7 Bankruptcy to find relief from debt.  The most common types of debts our clients eliminate in a Chapter 7 Bankruptcy are credit cards, payday loans, signature loans, medical bills, utility bills, judgments, and deficiency balances due to a repossession or foreclosure.

Our clients find that filing Chapter 7 Bankruptcy is often the cheapest, easiest, and most effective way to resolve their debts.  Attempting to settle unsecured debts or pay them through consolidation programs can be extremely burdensome to your financial and emotional well being.  Fortunately, Chapter 7 bankruptcy can give you a fresh start by eliminating debts quickly and cost efficiently.

Some immediate results you can expect after filing a Chapter 7 Bankruptcy:

  • Collection Lawsuits stop – Court proceedings for debt collection law suit(s) must stop
  • Collection calls stop – Debt collectors are required to stop calling you
  • Garnishments stop – Debt collectors are required to stop garnishing wages
  • Repossession stops – The creditor must ask the Court’s permission first before taking a car
  • Foreclosure stops – The creditor must ask the Court’s permission before foreclosing
  • Eviction stops – The landlord must ask the Court’s permission before evicting

The reason all these collection actions must stop is because when one files for Chapter 7 Bankruptcy protection, Federal Bankruptcy Law says that all collection actions are stayed (stopped with very few exceptions).

When researching filing for Chapter 7, two big factors to consider are:

  1. Do I qualify for Chapter 7?
  2. Will I lose any of my assets?

Qualification for a Chapter 7 is largely based on your income.  For the most part, below median income debtors automatically qualify for Chapter 7 Bankruptcy.  An above median income debtor can qualify for Chapter 7 Bankruptcy as well, and qualification will generally be based on your gross income minus your allowable expenses.  Our attorneys can help with this assessment, usually over a quick phone consultation.

Secondly, most Chapter 7 Debtors do not lose any of their assets, including their home.  This is because Texas has very strong exemption laws that protect the property of most Debtors.  In Texas, Debtor’s may also elect to use Federal Exemptions, which, in some circumstances, protects your property even better than the Texas exemption laws.  Some examples of non-exempt property that debtors may have to give up in a Chapter 7 Bankruptcy include airplanes, speed boats, rare coin collections, rare art, or expensive jewelry.  Our attorneys can help you assess if you have any non-exempt property, usually over a quick phone consultation.

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