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Be careful not to jeopardize a Chapter 7 bankruptcy discharge

Finding a way to resolve financial difficulties can help relieve the stress that most Texas residents feel under these circumstances. For many, filing for Chapter 7 bankruptcy is the right debt relief option, and they expect to walk away with a fresh financial start and fewer debts. However, if not careful, they could jeopardize receiving the discharge they need.

How often can Chapter 13 or Chapter 7 bankruptcy be filed?

It is nearly impossible for Texas residents to predict when they will encounter serious financial difficulties. Perhaps a consumer had this problem in the past, and used Chapter 7 bankruptcy in order to gain a fresh financial start. Things may have gone well for some time, but then something happened to undo that progress. Perhaps an injury or illness, a job loss or a divorce caused another financial crisis.

Chapter 7 bankruptcy issues: Bank levy and garnishment

Getting behind on financial obligations happens to many people, including Texas residents. These issues often arise out of some sort of crisis that drains financial resources such as an illness, an injury or job loss, among other things. When this happens, some creditors may attempt to get the money they are owed through a bank levy or a garnishment, both of which could be stopped, at least temporarily, through a Chapter 7 bankruptcy.

Can a Chapter 7 bankruptcy help with student loans?

Numerous Texas residents pay their way through college with student loans. While in school, most of them had dreams of making enough money to support themselves and repay their loans without a problem. Then, reality set in, and they realized that paying for those loans is not as easy as they thought, and perhaps were told, that it would be. Most people are told that filing a Chapter 7 bankruptcy does nothing for student loans, but that may not always be the case.

The basic steps of a Chapter 7 bankruptcy

Many Texas residents can attest to the fact that struggling with debt is no picnic. Many households reach the point where they can barely afford the necessities, let alone pay any discretionary bills. At this point, they probably attempted to deal with the overwhelming amount of debt through other means before coming to the conclusion that filing for Chapter 7 bankruptcy would be the best resolution, but the unknown could be intimidating.

A discharge isn't guaranteed in a Chapter 7 bankruptcy

If someone tells a Texas resident otherwise, he or she should probably run the other way. While most people do receive a discharge from a Chapter 7 bankruptcy, there is no guarantee it will happen. However, knowing the circumstances under which one may not be given could help increase the likelihood of receiving one.

Chapter 7 bankruptcy could save you from creditors' efforts

For whatever reason, you are no longer able to meet your financial obligations as you once were. Now, you have creditors calling you, sending you letters and making threats or following through with legal action. More than likely, you have tried everything you can think of to deal with your financial situation, but to no avail. Like other Texas residents, you probably did not automatically consider filing for Chapter 7 bankruptcy as a debt relief option, even though it could be your best option.

Do Chapter 7 bankruptcy filers have to give up their property?

There is one debt relief option that some Texas residents may not explore out of fear of losing their property. The myths surrounding Chapter 7 bankruptcy include a story that anyone who files will lose all of his or her property. Fortunately, this simply is not true. Depending on the circumstances, some property may be surrendered to pay creditors, but more than likely, most people's property will fall under one or more exemptions.

Why do people turn to Chapter 7 bankruptcy?

The odds are that you have some sort of debt just like many other Texas residents do. You may also be like others who consistently perform the same balancing act each month just to stay above water. However, when that balancing act becomes too much to bear, you may turn to Chapter 7 bankruptcy for relief, just as many people before you.

Chapter 7 bankruptcy issues: Changes in the debt landscape

Back in 2008, the banking and housing industries experienced a crisis that thrust the country into the Great Recession. Over the last 10 years, consumers' spending habits changed in response to it. For many Texas consumers, that meant filing for Chapter 7 bankruptcy as they experienced financial hardships.

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