Chapter 7 Bankruptcy: Sometimes Called “Fresh Start” Bankruptcy
Many debtors who plan to file bankruptcy hope to qualify for Chapter 7 bankruptcy. This type of bankruptcy can actually wipe out most or all consumer debts, such as:
- Medical debt
- Revolving loans
- Credit card balances
- Payday loans
- Finance company loans
Are You Eligible?
To determine your eligibility to file Chapter 7 bankruptcy, you will need to take a means test and fulfill other legal requirements. Talk to debt relief lawyer Abe Limon in Brownsville for advice on completion of the means test, which will examine:
- Your income
- The income of the average family of your size in Texas
- Your assets
- Your debts
- Your living expenses
Do not jump to conclusions about whether you qualify for Chapter 7 bankruptcy before talking to an attorney. Your financial situation may show that Chapter 7 bankruptcy is appropriate for your circumstances. If not, you may decide to turn to Chapter 13 bankruptcy or explore bankruptcy alternatives, such as debt settlement negotiations.
What To Expect If You File Chapter 7 Bankruptcy
In a nutshell, the process leading to a Chapter 7 discharge will include:
- With Mr. Limon‘s help, taking the required means test, with a “green light” result
- Completion of required credit counseling
- Inventorying assets and debts
- Filing a bankruptcy petition along with a court filing fee
- Experiencing immediate relief from creditor harassment
- A few weeks later, a brief interview with a bankruptcy trustee and you, with Mr. Limon in attendance
- If all goes well, a couple of months later, receipt in the mail of a discharge notice from the bankruptcy court
- A fresh start with great potential for rebuilding your credit
This short description is naturally simplified. Your bankruptcy lawyer will be your most important guide though all steps needed for completion of a Chapter 7 bankruptcy.
For Many Debtors, Chapter 7 Bankruptcy Is An Effective Path To A Fresh Start In Just A Few Months
Brownsville bankruptcy law attorney Abe Limon is prepared to explain what you need to know to learn whether you are qualified, to prepare your petition, to accompany you to the Trustee interview and to make sure you have fulfilled all requirements. He will also inform you of options you may have, such as reaffirmation of a car loan This may be important if you are up to date on your car payments and want to keep your car.