Chapter 7 Bankruptcy
If you are facing overwhelming debt and considering bankruptcy, there are several options to understand. Of those options, Chapter 7 is the type of bankruptcy that allows an individual to discharge debts and move forward with a fresh start in a period of months. It can provide the quickest elimination of an individual’s debts. If you need the type of relief that Chapter 7 bankruptcy offers, contact Baker & Associates to get started.
Chapter 7 bankruptcy involves the liquidation of your non-exempt property (most people in Texas have very little, if any, non-exempt property) to pay your creditors and discharges your debts. Chapter 7 bankruptcy provides a “fresh start” for individuals trying to recover from debt.
Chapter 7 bankruptcy does not help with restructuring your house or car debts. If you are facing a foreclosure, a Houston bankruptcy attorney can help your understand which of your debts can be eliminated using Chapter 7 and whether or not it is the right option for you.
Changes made by Congress to the Bankruptcy Code in 2005 included significant changes to Chapter 7 bankruptcy. Filing a Chapter 7 bankruptcy is more difficult due to many added requirements. One of the most important changes was the “means test” which determines whether a debtor can file for bankruptcy under Chapter 7 or must file under Chapter 13 bankruptcy.
The Chapter 7 Means TestThe “means test” is one step used to determine whether an individual qualifies to file for Chapter 7 bankruptcy. The “means test” was implemented to address concerns of Congress with individuals with higher incomes filing Chapter 7 bankruptcies. However, the “means test” is only one of several steps used to evaluate whether an individual can file a Chapter 7 case. There are ways to qualify an individual for Chapter 7 who does not pass the means test, but you need an attorney who is actively involved in bankruptcy work and understands and knows the methods to qualify individuals for Chapter 7 cases.
If you cannot qualify for Chapter 7, you have the option to file under Chapter 13 or Chapter 11. For people who do not qualify for Chapter 7, a Chapter 13 case can be a very good solution. Chapter 13 does not mean that you must repay all of your creditors in full. Your payments in a Chapter 13 plan depend on many factors. An attorney who understands and knows the bankruptcy process can assist in structuring payments that are advantageous to you.
Contact a Baker & Associates debt relief expert today who can help you determine whether Chapter 7 bankruptcy is an option for you.
Chapter 7 bankruptcy involves the liquidation of your non-exempt property (most people in Texas have very little, if any, non-exempt property) to pay your creditors and discharges your debts. Chapter 7 bankruptcy provides a “fresh start” for individuals trying to recover from debt.
Chapter 7 bankruptcy does not help with restructuring your house or car debts. If you are facing a foreclosure, a Houston bankruptcy attorney can help your understand which of your debts can be eliminated using Chapter 7 and whether or not it is the right option for you.
Changes made by Congress to the Bankruptcy Code in 2005 included significant changes to Chapter 7 bankruptcy. Filing a Chapter 7 bankruptcy is more difficult due to many added requirements. One of the most important changes was the “means test” which determines whether a debtor can file for bankruptcy under Chapter 7 or must file under Chapter 13 bankruptcy.
The Chapter 7 Means TestThe “means test” is one step used to determine whether an individual qualifies to file for Chapter 7 bankruptcy. The “means test” was implemented to address concerns of Congress with individuals with higher incomes filing Chapter 7 bankruptcies. However, the “means test” is only one of several steps used to evaluate whether an individual can file a Chapter 7 case. There are ways to qualify an individual for Chapter 7 who does not pass the means test, but you need an attorney who is actively involved in bankruptcy work and understands and knows the methods to qualify individuals for Chapter 7 cases.
If you cannot qualify for Chapter 7, you have the option to file under Chapter 13 or Chapter 11. For people who do not qualify for Chapter 7, a Chapter 13 case can be a very good solution. Chapter 13 does not mean that you must repay all of your creditors in full. Your payments in a Chapter 13 plan depend on many factors. An attorney who understands and knows the bankruptcy process can assist in structuring payments that are advantageous to you.
Contact a Baker & Associates debt relief expert today who can help you determine whether Chapter 7 bankruptcy is an option for you.
