Answering Your Questions About Chapter 7
At the office of Emil Sargent Attorney at Law, we understand that you will have many questions about a Chapter 7 filing. Although commonly referred to as a Chapter 7 liquidation, this bankruptcy option offers important protections.
Determining Your Eligibility
As a preliminary matter, you are eligible to file for Chapter 7 only if you pass the statutory “means test.” If you qualify under the test, it means that your monthly income, expenses and dependent obligations could not support a Chapter 13 repayment plan. If you did not qualify, it means that you have enough disposable income to repay or restructure your debts.
Acting Quickly To Protect You
We know how to take quick action to protect your remaining financial reserves. A lien holder may attempt to garnish your wages or funds in your bank account. By filing a Chapter 7, federal law immediately creates an automatic stay and halts the garnishment. You are then entitled to exempt certain assets up to a statutorily defined value. Many of our clients opt to exempt their homestead or motor vehicle, but the exemption can also be applied to certain other assets such as funds in a bank account. If you don’t own other assets, it might be most strategic to apply your exemption against funds in your bank account.
Helping You Make Informed Decisions
A Chapter 7 is not something we advise unless we are confident you are making an informed decision. We educate you, in plain language, about the practical effects of a Chapter 7 filing. This often involves many questions about the scope of a Chapter 7 liquidation. Many clients do not realize that a lien held by a creditor, such as a secured asset, generally cannot be liquidated.
This is an important distinction. The Chapter 7 will clear you of personal obligation for the secured debt, so the creditor cannot sue you personally for the debt. However, the creditor usually can repossess the asset after the conclusion of your bankruptcy case. For this reason, a business owner who personally guaranteed his or her business assets may benefit from a Chapter 7 liquidation.
Contact An Experienced Chapter 7 Bankruptcy Attorney
If liquidating your assets would give you a clean start, we are here to advise you about the protections of a Chapter 7 bankruptcy. Take proactive steps to regaining control of your finances today. Schedule a free initial consultation at our Houston office by calling 713-364-0002. You may also complete our online contact form.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.