Beaumont Chapter 7 Bankruptcy Lawyer
Steven Packard Handles Chapter 7 Bankruptcy in Beaumont, TX
When thinking of bankruptcy, many people think off 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.
Struggling with overwhelming debt?
Contact us online or call (409) 858-0984.
Are there Alternatives to Filing for Bankruptcy?
There are also other options that may allow you to satisfy your secured
debt and keep your property:
- Reaffirmation- Keeping a Debt
- Redemption- Paying the Value of the Collateral
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.
How Do I Know if Chapter 7 Bankruptcy is Best?
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.
Do I Qualify for Chapter 7 Bankruptcy?
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
Can I Discharge All My Debt in Chapter 7 Bankruptcy?
Non Dischargeable Debt in Chapter 7
Unfortunately, not all debt can be discharged—even in a Chapter 7
bankruptcy. There are exemptions that can be used to keep some property,
and there are also exemptions to debts that can be discharged. Some debts
are considered automatically non-dischargeable. Others can become non-dischargeable
if a creditor makes an objection.
These are just some of the examples of non-dischargeable debts:
- Past due child support
- Divorce property division debts
- Homeowners association fees
- Some attorney fees
- Debts in a personal injury lawsuit that involved drunk driving
- Some forms of tax debt
- Spousal support/alimony debt
- Some types of “luxury” credit card purchases made within the
previous 90 days before filing bankruptcy
- Debts resulting from causing injury to another individual
- Debts resulting from knowingly defrauding another individual
- Debts that the filer did not include in his / her bankruptcy petition
Are Student Loans Non-Dischargeable?
In most cases, student loans cannot be discharged in a bankruptcy proceeding.
There may be a chance that you can discharge your student loan debt if
you are able to provide that you:
- Have made a reasonable effort to pay your student loan debt
- Would not be able to maintain a minimum standard of living while paying
- Face a financial situation that most likely won’t change in the immediate future
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.