What is Chapter 7?
Attorneys Serving Dallas-Ft. Worth, Austin and Houston
If you simply cannot make ends meet, you should consider a Chapter 7 bankruptcy. Filing for a Chapter 7 bankruptcy can be ideal if you have overwhelming credit card debt, medical bills, or are facing lawsuits over your debts.
Many people try to survive as long as possible by shifting debt from one credit card to another. For 6-12 months, you can keep sending credit card checks from one company to another to stay afloat. But you will only be delaying the day when you must file for bankruptcy.
The Benefits of Chapter 7
Chapter 7 bankruptcy is sometimes known as "liquidation," because it involves paying off part of your debt by selling off assets that are not necessities. Once you have liquidated the assets, your debts are "discharged," or wiped clean. Few people, if anyone, actually pay off all their debts before they are discharged.
When you file for Chapter 7, you are making a good-faith effort to resolve your financial troubles instead of just delaying them. So as soon as you file, your creditors must, by law, stop all harassment. And most wage garnishments must also cease.
Perhaps best of all, a Chapter 7 bankruptcy will quickly resolve your debt and let you start over from scratch. You credit will not be ruined - in fact, you can rebuild your credit relatively quickly after a Chapter 7.
The Potential Disadvantages of Chapter 7
At Fears | Nachawati, we do not want you to file for a Chapter 7 bankruptcy without first understanding the potential disadvantages. Our lawyers are here to do what is best for you, and we explain all the upsides and downsides of each option.
For instance, if you want to keep your house and car, you will still have to make payments on them during and after the bankruptcy process. In Texas, you cannot completely eliminate debts and still keep your house and car. However, you can keep a home and a vehicle for each adult of driving age while going through a Chapter 7.
Our lawyers are ready to answer any of your questions about Chapter 7 bankruptcy and whether it is right for you. We maintain office hours 6 days a week and can meet with you in the evenings or on weekends. Flexible payment plans are available.