What is a Chapter 7 Bankruptcy?
Texas Chapter 7 Bankruptcy is probably what most people think of when they hear the word “Bankruptcy.” Chapter 7 provides people with the fresh financial start they need by discharging most, if not all, of an individual’s unsecured debt. However, determining which debts are able to be discharged can be a tricky process. If you attempt to discharge the wrong debt, a creditor will object to your Bankruptcy plan and hinder the process.
Additionally, figuring out which property is exempt or non-exempt from the Bankruptcy can be confusing due to the way the Bankruptcy code is written. A non-exempt asset will be sold during the process to pay off debts, while an exempt asset will be protected from liquidation.
Every situation is different so do not assume yours will be exactly like somebody you know or someone you read about. This fact alone is why having an experienced Houston Bankruptcy attorney from Guerra | Days Law Group to guide you through the process is important.
Chapter 7 – Liquidation
Bankruptcy is a very misunderstood area of law; none more than Chapter 7. Simply put, Chapter 7 Bankruptcy assists individuals with unsecured debt such as credit cards, loans with no collateral, and high medical bills. It generally does not help individuals with unmanageable secured debt such as mortgages or car loans.
If you are thinking about filing a Chapter 7 but aren’t sure how your real estate will be affected or simply don’t want to file alone, contact the Houston Bankruptcy attorneys at the Guerra | Days Law Group. We’ve assisted hundreds of bankruptcy clients since the mortgage crisis of 2008 and we are here to assist you now.
Getting Your Bankruptcy Started
Filing for Chapter 7 Bankruptcy can be the relief you need to move forward from crippling debt, give you a fresh start from a tragic life event or anything in between. If you have read this far, you probably have your mind made up. Contact the Bankruptcy attorneys at the Guerra | Days Law Group for a free consultation to discuss how we may be able to assist you get your life back on track with the Chapter 7 process.