What You Need To Know About Chapter 7 Bankruptcy
No one ever starts their adult life anticipating they will need to file bankruptcy, but it happens to an increasing number of Americans every day. William H. Lively, Jr. WHL, PLLC, is an excellent bankruptcy law firm that serves Tyler, Gregg County, Smith County and the surrounding areas.
When most people think of bankruptcy, they think of a Chapter 7 proceeding, sometimes referred to as a liquidation bankruptcy or complete bankruptcy. Through a Chapter 7 bankruptcy process, you have the ability to get rid of all dischargeable debts. However, all of your nonexempt assets will be liquidated (sold), and the proceeds are paid to their creditors.
For a free consultation, please call us in Tyler at 903-920-0008 or complete our contact form. We are the premier bankruptcy law firm serving all of East Texas.
How Does Chapter 7 Work?
Also known as “liquidation bankruptcy,” Chapter 7 bankruptcy works by discharging many types of debt. In exchange, the debtor is required to liquidate (or sell) items of property, and the proceeds from the sales go to creditors. A bankruptcy trustee is assigned by the court to oversee the process. Many types of property are exempt from liquidation, such as most homes, your car, most retirement accounts and pensions, and up to $50,000 in personal property for a single filer or $100,000 for a family. Under bankruptcy law, the debtor will also have to take courses in financial management.
Is there A Limit To How Much Debt You Can Discharge Through Chapter 7?
No, there is no cap on how much debt you can discharge through Chapter 7 bankruptcy, unlike when using Chapter 13.
Are There Any Types Of Debt You Cannot Discharge Through Chapter 7?
Yes. Under current bankruptcy laws, you are generally not permitted to discharge of the following types of debt:
- Student loans
- Certain types of tax debts
- Unpaid child support and alimony
- Fraudulent debts of any kind
While student loans and taxes are a problem for many people, often it is things like credit card debt and medical debt — which generally can be discharged — that are the most burdensome. While Chapter 7 will let you eliminate your credit cards in most cases, but there are certain stipulations that need to be examined. Your attorney will be able to advise you on what is dischargeable and what is not. If you want to keep properties that are secure, you have to sign reaffirmation agreements in most cases.
How Long Does Chapter 7 Bankruptcy Take?
Most Chapter 7 bankruptcy cases last about 60 to 90 days after filing. Once the process is complete, the burden of debt will be removed, and you will have a fresh start financially.
Find Out How Filing Chapter 7 Can Help You
Many view bankruptcy in a negative light, but there are benefits to filing for Chapter 7 that can completely free you of debt in a relatively short amount of time. To speak with a lawyer about your situation, please fill out our contact form or call us at 903-920-0008.
Based out of Smith County, William H. Lively, Jr. WHL, PLLC offers free consultations, so we encourage you to contact us and learn more about your options today.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.