Handling Chapter 7 Bankruptcy Cases in Beaumont, TX
Beaumont Bankruptcy Lawyer
When thinking of
bankruptcy, many people think of what is provided for by a Chapter 7 bankruptcy.
This may involve returning property that you can no longer afford, liquidating
non-exempt assets, and using the proceeds to pay unsecured debts, and
discharging the remaining unsecured debts. A Chapter 7 bankruptcy can
be relatively short compared to bankruptcy under other chapters, and can
be particularly helpful if you do not have much non-exempt property. If
desired, secured debts may be satisfied by surrendering the collateral
back to the creditor. There are also other options that may allow you
to satisfy your secured debt and keep your property. Reaffirmation and
redemption are two of these options. These options involve keeping a debt
(reaffirmation), or paying the value of the collateral (redemption). Either
of these options may allow you to keep your property, and while they may
not be as affordable as the options in a Chapter 13 case, they may make
the most sense, particularly if you are able to exempt enough cash or
can otherwise redeem the collateral in a redemption.
There are some situations that do not work well with a Chapter 7 bankruptcy.
Owning a community property interest in a home with a non-filing spouse
can create serious problems. In some circumstances, you may not be able
to exempt all of the equity in your home, particularly if your spouse
is not filing bankruptcy. If this occurs, the trustee may sell the home
and use your spouse’s non-exempted portion of the proceeds to pay
your unsecured debts. Also, prior transfers and gifts may cause problems,
particularly if they were to family members. In some cases, the trustee
may avoid (reverse) the transfer and require the person to turn over the
gift or thing transferred. These scenarios may affect your decision on
whether a Chapter 7 bankruptcy is right for you, so it is important to
discuss them with your attorney.
While Chapter 7 bankruptcy is a very popular form of debt relief, not everyone
qualifies for it. If you received a discharge through a bankruptcy under
Chapter 13 in the last six years, or a Chapter 7 in the last eight years,
you may not be eligible for a new Chapter 7 discharge. Also, to qualify,
you must also be able to prove that you do not have the financial means
to repay a certain portion of your creditors through a
Chapter 13 payment plan.
When filing for Chapter 7, you must disclose details of your financial
condition and history. Some of these details include
- Your debts;
- A list of all property (exempt or not), such as bank balances, furniture,
clothing, and home equity;
- Any lawsuits or rights of action;
- Your current living expenses and income; and
- All transfers, gifts, and preferences (payments to certain creditors) during
various time periods.
Not sure if you qualify for Chapter 7 bankruptcy?
Let me review the details of your case during a
Beaumont Bankruptcy Attorney
I devote my entire practice to bankruptcy law. I work hard to help people
resolve their debts and to help them get back on their feet. Call me,
Steven Packard, Attorney at Law, and visit with me about your situation.
If a Chapter 7 bankruptcy is right for you, I will work with you to prepare
your case for filing and prosecution. I will make sure that your case
is prepared properly, and will be with you to explain and guide you through
the Chapter 7 process.
I am ready to help. Just
contact my office
for a free consultation.