June 14, 2021 By:
Before you do anything else, confirm that the debts making you feel overwhelmed can actually be discharged in a Chapter 7 proceeding. Child support arrearages are specifically excluded. And student loan payments and tax debts are extremely difficult to discharge.
The tradeoff for discharging debt is that you must transfer some of your assets to the bankruptcy court to be sold to satisfy your creditors. Some property is exempt, but if wish to keep property that’s not exempt, you may not want to file under Chapter 7.
Under U.S. bankruptcy, you must qualify to discharge debts under Chapter 7 by taking a “means” test. The bankruptcy court determines whether you have the resources to repay your creditors in Chapter 13. If you do, you’re not eligible to file under Chapter 7.
If you have property secured by collateral (a house or car, for example), you can keep that property, but you must “reaffirm” the debt, making a legal promise to continue to pay the obligation. When you do, that property is excluded from a Chapter 7 proceeding.
Before you can actually file your bankruptcy petition, you must complete an approved credit-counseling course.
At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. I am currently communicating with clients by phone, text message, or videoconference. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Rockwall County, Collin County, Dallas County, Hunt County, and the surrounding counties.