If you or a loved one are in financial difficulty and thinking that bankruptcy may be the only option, contact LoBue Law, PLLC today for help. With free consultations and uniquely flexible payment plans, our knowledgeable lawyer can help you determine whether a Chapter 7 Bankruptcy is right for you. We bring over two and a half decades of experience in bankruptcy law working for banks and creditors, and our Chapter 7 bankruptcy lawyer in Plano knows exactly how to effectively represent your interests.
He can guide you through the process towards determining whether a Chapter 7 bankruptcy is right for you so you can get back to living life to the fullest.
Call LoBue Law, PLLC at (972) 694-6400 today to speak to our lawyer about whether a Chapter 7 bankruptcy is right for you. Together, we can find a solution to your financial difficulties.
Attorney LOBUE, is the BEST!Rochelle M.
Chapter 7 bankruptcy is often referred to as “straight” bankruptcy. A case filed under this chapter can discharge (wipe out) most unsecured debt and avoid the repayment of remaining balances. Chapter 7 bankruptcy occurs when the debtor individual or corporations’ assets are collected by a court-appointed trustee to be liquidated for the satisfaction of his or her debts.
Although liquidation of assets through Chapter 7 bankruptcy may result in a drop in net worth, it also immediately halts creditor collection efforts and is one of the quickest ways to discharge your liabilities.
Chapter 7 bankruptcy is usually better for individuals as their debts are usually discharged after liquidation while a corporation’s debts are not. However, not all individuals can qualify for this type of bankruptcy. A full evaluation of your financial situation by our bankruptcy attorney can help you determine the right choice for your needs.
Chapter 7 bankruptcy begins when the debtor petitions the court for relief.
You may qualify for a Chapter 7 bankruptcy if:
- Your gross income is less than the median income of your state
- You do not have enough income to qualify for a Chapter 13 Bankruptcy despite making more than the state median income
- You have not declared bankruptcy within the last 6-8 years
- You did not commit fraud
If you meet these requirements you may qualify for a Chapter 7 liquidation bankruptcy. Upon the filing of a bankruptcy petition, a court order, called the Automatic Stay, will prevent any creditor from contacting you, foreclosing on your home, or repossessing your car, without court approval to do so.
Chapter 7 bankruptcy is the most common type of consumer bankruptcy in the United States. It is a liquidation process that allows individuals to have their debts discharged without having to pay them back.
If you are a Texas resident and looking to file Chapter 7 bankruptcy, here are the steps you need to take:
- First, you must attend a credit counseling session with an approved agency at least six months prior to filing your bankruptcy. This is required by federal law and you must provide proof of the counseling before your bankruptcy case can proceed. This is a requirement of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The counseling can be done in person, over the phone, or online and typically takes about an hour.
- Gather all the necessary paperwork and documents. This includes any tax returns from the past two years, proof of income, financial statements such as bank account balances and investments, and a list of all your creditors. Make sure you have copies of all this information.
- Next, complete the official bankruptcy forms. These forms can be found on the U.S. Bankruptcy Court website and must be filled out completely and accurately before filing for bankruptcy.
- You must pay a filing fee when you submit your petition to the court. The fee is currently $338 dollars, although it may change over time. In some cases, you may qualify for a fee waiver or installment payment plan.
- Once you have submitted your petition to the court, you must attend a meeting with the trustee assigned to your case. This meeting gives creditors an opportunity to present any objections they may have and also allows the trustee to verify that all information is accurate.
- Finally, after all steps have been taken, the judge will either approve or deny your petition. If approved, you will receive a discharge of all debts and be free from any future payments.
By following these steps, you can begin the process of filing for Chapter 7 bankruptcy in Texas. It is important that you understand the process to ensure your case is handled properly.
Make the Right Choices for Your Unique Needs
LoBue Law, PLLC focuses on providing client-centered legal services. When you put your trust in our Plano Chapter 7 lawyer, you can expect one-on-one attention from our attorney Vinny. From start to finish, you can expect us to walk you through all the necessary steps to help you successfully move forward from your current situation. Do not hesitate to reach out with any questions or concerns.