There are two different types of bankruptcy; Chapter 7 and Chapter 13. Chapter 7 bankruptcy does not require a repayment plan to be established. Instead, the debtor is assigned a trustee who is in charge of gathering all non-exempt assets and selling them. The profits from this sale will then be evenly distributed to the various creditors. This process will be accomplished according to the United States Courts Bankruptcy Code. This procedure can give the debtor the freedom to retain exempt property and he or she is discharged from paying many remaining debts. A downside to Chapter 7 bankruptcy is that it can result in the loss of assets and possessions.
You can qualify to file for Chapter 7 bankruptcy by passing the means test. The means test reviews all aspects of your income to make sure that you are below the median income of the specific state. If you are under the average income, you are probably qualified to file for Chapter 7 bankruptcy. The process begins with the action of filing a petition with the bankruptcy court. Immediately after filing, creditors should cease all debt collection attempts against you. The process takes approximately four months to complete, though the exact amount of time may vary.
There are many benefits to filing for Chapter 7 bankruptcy for those facing immense debt. It allows you to walk away from your debt and look toward a healthy financial future. This process is fast, there are no monthly payments that have to be stressed and unsecured debts are released after the process is complete. This type of bankruptcy also ends any attempts at credit collection. You can stop harassment as soon as you file as well as halt foreclosure to help you to keep your home. Feel free to contact one of our attorneys at your soonest convenience to schedule a free consultation. Our firm has offices in Killeen, Temple, Waco, Austin, Bryan, Laredo and other Texas cities as well.