CHAPTER 7 BANKRUPTCY HELP IN HOUSTON
In today’s precarious economy, it’s not uncommon for individuals and families to become overwhelmed with debt. If you are struggling to meet your financial obligations and have creditors calling you or sending you letters constantly to try to get you to make payments, it’s easy to feel like your debt is pulling you under. Fortunately, there are some options available to you that can help you overcome debt and bad credit, so you can start over with a clean financial slate.

What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is a type of bankruptcy that liquidates non-essential and exempt assets in order to pay as much of your debt as possible. Then, the remaining debt is discharged or wiped clean. Some debts cannot be discharged, like a home loan or a student loan. However, medical debts, credit card debts and other unsecured debts are eligible. Once you file for bankruptcy, your creditors are immediately notified and they are required to cease all collection activity. The bankruptcy court will examine your income, your debts, your financial obligations and your assets to determine the best way to proceed with the liquidation of your assets and the satisfaction of your debts.

Qualifying For a Chapter 7 Bankruptcy
Not everyone can file for a Chapter 7 bankruptcy in Texas. In order to qualify for this type of bankruptcy, you must pass what is called a “means test.” If you have a low income, you may automatically pass the means test. Your income must be lower than the median income for a household of your size in your state. Or, if you have a higher income but significant debts, you may be able to pass the test as well. A seasoned Houston Chapter 7 bankruptcy lawyer can help you gather the information you need for the means test.

Will Bankruptcy Hurt My Credit?
Bankruptcy of any kind — whether it is Chapter 7, 11 or 13 — will put a mark on your credit score. However, in many cases where individuals or families owe significant debts, it hurts the credit score less than if the debts were to remain unpaid. Chapter 7 bankruptcy is an excellent option for people who have a lot of debt with little means to pay it and want to obtain a clean financial slate in which to start over.

Many people believe that bankruptcy is only for the financially irresponsible. Nothing is further from the truth. Even those who are excellent money managers have been hit by hard times and unexpected expenses.

If you are considering filing for bankruptcy, it is important to consult a Texas bankruptcy attorney as soon as possible to learn more about the process and how bankruptcy can work for your individual situation. Attorney Greg Wiley has the experience and resources necessary to assist you with your Chapter 7 bankruptcy claim. Call today for a consultation at (832) 409-3322.

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