Chapter 7 Bankruptcy Attorney Serving Kaufman and Rockwall Counties
Kemp bankruptcy lawyer helps Texans get a fresh start
Sometimes, situations beyond your control can profoundly impact your earning potential and lead to overwhelming debt. Designed to give debtors a fresh start, Chapter 7 bankruptcy gives you and your spouse relief from debts through liquidation of your assets. Once you have filed for bankruptcy, creditors must immediately stop collections efforts, including harassing letters and phone calls. I am an experienced Texas Chapter 7 bankruptcy attorney who helps people like you emerge from overwhelming debt and make a fresh financial start. At Jenny C. Parks, PC in Kemp, residents of Kaufman and Rockwall counties get the legal support they deserve at every stage of the debt discharge process.
What is Chapter 7 bankruptcy?
Chapter 7 bankruptcy is a legal procedure used by individuals and businesses to discharge debts that they are not capable of paying. Some refer to this form of bankruptcy as “liquidation” because the court might order existing assets to be sold in order to repay creditors. Business owners generally seek Chapter 7 protection when they are shutting down operations and want to protect their personal assets. However, for individuals, it can be the decisive step that enables them to rebuild their credit.
The Texas Chapter 7 bankruptcy process
As an experienced Kemp bankruptcy attorney, I guide clients through every stage of a Chapter 7 proceeding, such as:
- Review of your financial information and assessment of whether you qualify for debt discharge
- Mandatory credit counseling
- Preparation and filing of necessary documents, including an inventory of assets, debts, income and expenses
- Appointment of a bankruptcy trustee and the automatic stay, where the court orders creditors to stop contacting you while the proceeding is pending
- Creditors’ meeting where those you owe can make their claim on any assets left to be divided
- Liquidation of nonexempt property, if you have any
- Discharge of eligible debts
Typically, a Chapter 7 bankruptcy will take between four and six months. Once the process is complete, you do not have to worry about the discharged debts ever again.
Requirements for filing Chapter 7 bankruptcy
To qualify for Chapter 7 bankruptcy relief, you must satisfy the court’s means test, which calculates your income and expenses compared to the median income in Texas. You also cannot file for Chapter 7 bankruptcy if you have received a Chapter 7 debt discharge in the previous eight years. If you do not qualify under Chapter 7, a Chapter 13 bankruptcy might be a suitable option. We can help you determine whether you are eligible for Chapter 7 bankruptcy and if it is your best solution for dealing with your debts.
Debts that can and cannot be discharged through Chapter 7
Chapter 7 bankruptcy is used to eliminate unsecured debts, such as credit-card balances, utility bills and money owed to healthcare providers. Certain debts, however, cannot be discharged through bankruptcy. These include back child support and alimony payments, student loans and recent unpaid taxes. We advise you about how much of your debt is dischargeable, so you can make an informed decision about whether to pursue Chapter 7 bankruptcy. Under Chapter 7, lenders can retake the property that was used to secure loans. This means that a mortgage company can foreclose upon your house and a car loan provider may repossess your vehicle.
I can help you determine which of your assets are eligible for exemption and negotiate with the trustee to preserve these assets from bankruptcy liquidation. Upon conclusion of the bankruptcy process, you are no longer responsible for paying back discharged debts. My firm advises you about how much of your debt can be eliminated, so you can make an informed decision about whether to pursue Chapter 7 bankruptcy.
Contact an effective Texas Chapter 7 bankruptcy lawyer to discuss your options
Jenny C. Parks, PC represents Texans in Chapter 7 bankruptcy matters. My firm is located in Kemp and serves clients throughout Kaufman and Rockwall counties. Please call 972-472-8888 or contact me online for a consultation.