January 11, 2023 By:
Not necessarily. While fully discharging your debts may seem like a no-brainer, there can be certain downsides to filing a Chapter 7 liquidation. Furthermore, you may not qualify to discharge your debts.
Before 2005, you could choose to file either a Chapter 7 or a Chapter 13. Under the revisions to the bankruptcy laws enacted in 2005, you must now qualify to discharge your debts, essentially by showing that you lack the resources to repay creditors in a Chapter 13 proceeding. The bankruptcy court will take a look at your disposable income, compared to others in your state, and make a determination whether you qualify to file under Chapter 7. If not, you must go through Chapter 13.
You may opt for Chapter 13 for at least a couple reasons:
There’s no time like the new year to get a fresh financial start. At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Kaufman County, Rockwall County, Collin County, Dallas County, Hunt County and the surrounding counties.