The Simplest Chapter 7 Bankruptcy Filing

July 17, 2019 By: Carrie Weir

A Successful Bankruptcy Petition Can Be Relatively Painless

When you think about a bankruptcy, it’s pretty common to envision complex financial calculations and lots of paperwork. While many personal bankruptcy filings are complex, and any bankruptcy petition should be made with the assistance of an experienced bankruptcy attorney, there are situations where a Chapter 7 (liquidation) proceeding can be completed in a short period of time, allowing you to get a fresh financial start.

First, let’s be clear about what a Chapter 7 petition can and cannot do for you. With a Chapter 7, you are allowed to permanently discharge (or rid yourself of) certain debts in exchange for transferring non-exempt assets to the bankruptcy court. As a general rule, you can’t discharge child support or spousal maintenance obligations, and tax and student loan arrearages are extremely difficult to discharge. You can typically protect some equity in a home and vehicle, as well as some personal property.

If you meet the following conditions, you can usually complete the Chapter 7 process with minimal challenges:

• Your total household income falls under the state median—This allows you to avoid any of the complex calculations set forth in the 2005 bankruptcy law revisions
• You don’t own much (if anything)—The more assets you have, the more time will be spent determining what you can keep and what must be given to the bankruptcy court to be sold to satisfy your creditors
• You don’t have secured debt, such as a car loan or mortgage—If you have collateral pledged for a debt, the bankruptcy court must establish priority among your creditors
• Your bankruptcy petition does not involve any business debts—Establishing priority with business debts can be time consuming as well
• You have done nothing to warrant any allegations of bankruptcy fraud—Even if you are found not to have committed bankruptcy fraud, the allegations can take months or years to resolve.

Contact Heath, TX Bankruptcy Attorney Carrie Weir

I offer a free initial consultation to all potential bankruptcy clients. Contact my office by e-mail or call me at 972-772-3083 for a private meeting. With offices in Rockwall, Texas, I represent clients in Heath, Greenville, Lavon, Wylie, Mesquite and Rowlett.