Dallas Chapter 7 Bankruptcy Attorney

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy protection allows for the sale of a debtor's non-exempt property. The proceeds from the liquidation of assets are then used to pay off creditors. It is not uncommon for financial advisers and attorneys to steer their clients away from Chapter 7 and toward another form of bankruptcy protection. This is because while Chapter 7 is a good resource for debtors, there are better bankruptcy codes that offer more protection.

Unlike its counterparts, Chapter 7 bankruptcy does not entail the filing of a repayment plan. Instead, the trustee collects and sells any property the debtor has that is not exempt from the proceedings. It is important to realize that Chapter 7 does not provide protection against foreclosure and the debtor is very likely to lose property during the proceedings.

To be eligible for Chapter 7, the debtor must be a person, corporation, partnership, or other business entity. It does not matter how solvent the filer's debts are. An individual, however, is not eligible to file for Chapter 7 protection if he or she has filed in the last 180 days. The filer must also attend a credit counseling course with an approved agency. There are sometimes exceptions in regards to eligibility as determined by the court.

The overall idea of Chapter 7 is to provide the debtor with a "fresh start." Once the debts have been discharged through the protection plan, the debtor is no longer responsible for those debts. There are some forms of debts that are not dischargeable, such as lien on a property.

When a debtor files for Chapter 7 bankruptcy protection, there are a series of additional forms that must also be submitted. These forms include the following:

• A list of assets
• A list of liabilities
• An income report
• A list of current expenses
• A schedule of any executory contracts and leases
• A copy of the debtor's most recently filed tax returns
• Proof of credit counseling
• A list of exempt property

Upon filing, the debtor is subjected to a case filing fee of $245 and an administrative fee of $39. There is also a trustee fee of $15. These fees can be paid via check to the court's clerk. If the fees are too much for the debtor, the court can approve an installment plan. Installments, however, must be completed within 120 days after the filing. In the event the debtor's income is 150 percent less then the poverty level as determined in the bankruptcy code, the judge has the ability to completely waive the court fees.

When a petition is filed, an automatic stay goes into effect stopping most, if not all, collection activity. The benefits of the stay, however, are subject to the bankruptcy code and in certain cases do not apply or are temporary.

Not long after the petition is filed, the court's trustee will hold a meeting for the creditors at which time they can question the debtor under oath. Within 10 days of the meeting, the trustee must report to the court if he or she feels the petition is legitimate. From here, a petition is granted or denied.

Chapter 7 Bankruptcy Lawyer

Convenient Locations

We offer multiple office locations where you can personally discuss your options and how we can help you. We have offices conveniently located in Dallas and Fort Worth. Texas. Please schedule your no-obligation, free, confidential consultation and evaluation with our experienced Texas Chapter 7 Bankruptcy Lawyers by calling us toll-free at 1-800-518-DEBT (3328) or filling out our online bankruptcy evaluation or quick e-mail intake form.

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As the law differs in each legal jurisdiction and may be interpreted or applied differently depending on your location or situation, the information or use of information on the Site is not a substitute for the advice of a lawyer.

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