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Woodlands Chapter 7 Bankruptcy

Chapter 7 Bankruptcy in Woodlands TX

Chapter 7 Bankruptcy in Woodlands TX

Chapter 7 bankruptcy in Woodlands, TX is commonly known as liquidation bankruptcy. It’s a process that allows individuals to discharge most (or all) of their unsecured debts in an attempt to reestablish their financial footing.

James R. Jones, Attorney at Law specializes in Chapter 7 bankruptcy. We represent individuals and businesses seeking to release themselves from credit card debt, unsecured loans, and other financial burdens.

Do You Qualify for Chapter 7?

Filing bankruptcy in Woodlands TX is a cumbersome process that requires legal guidance. Chapter 7 bankruptcy in particular requires very specific criteria be met in order to discharge debts. These criteria are determined via a Means Test.

A Means Test determines your financial means as compared to data from the Census Bureau representing the median income of others in your situation. It also takes into account your household size, income and dependents. In Texas, the benchmarks a person must meet to qualify for Chapter 7 include:

  • You make less than $37,676 per year
  • Less than $54,288 per year for a two-person household
  • Less than $55,534 per year for a three-person household
  • For each person in excess of 4, add $7,500

It’s important to note that raw income data may appear to disqualify you from Chapter 7, however through deductions your income may actually fall below the threshold. This is why it’s critical to work with a legal expert!

Also, if you’re a business entity considering Chapter 7, you may not even be subject to passing the Means Test. Many provisions exist that allow businesses to liquidate through other circumstances.

Dischargeable Debt In A Chapter 7 Bankruptcy

Filing for bankruptcy is a major financial decision. It is a decision that can affect a person’s life for many years. Anyone who is considering bankruptcy should become well-informed about the process and the kind of debt relief that can and cannot be achieved through bankruptcy. If you are finding it difficult to pay down your monthly obligations or have a substantial amount of debt that does not seem to diminish, bankruptcy could be a viable solution. As with any legal matter, it is highly advised to consult with an experienced Chapter 7 bankruptcy & debt law lawyer prior to making a decision that will impact your life. A bankruptcy attorney can assess your case, determine whether bankruptcy is right for you, and explain the types of debt that can and cannot be discharged in your particular case.

Unsecured Debt

Debt relief in a Chapter 7 comes in the form of a bankruptcy discharge. A bankruptcy discharge releases the debtor from their obligation to pay their creditors the debt they owe them. When a bankruptcy discharge has been granted, the creditors named in the bankruptcy cannot take any actions to collect the debt.

Most unsecured debt is dischargeable. Unsecured debt is not backed by collateral. As such, there is nothing attached to the debt that can be taken back or away by the creditor if the debtor fails to make payments or falls behind on their obligation to pay. Chapter 7 lawyers can help debtors distinguish between secured and unsecured debt. It may not always be easy to identify secured from unsecured debt without proper analysis.

Some common examples of unsecured debt that can get discharged in a Chapter 7 bankruptcy include:

  • Credit Card Debt
  • Medical Bills
  • Personal Loans
  • Collection Agency Accounts
  • Past Due Utility Bills
  • Business Debts
  • Rent Lease Agreements
  • Repossession Deficiency Balances
  • Attorney’s Fees (except where spousal support and child support are concerned)
  • Certain Tax Debt
  • Certain Civil Court Judgments

To learn more about unsecured debt, contact a qualified Chapter 7 bankruptcy & debt law lawyer.

Secured Debt

In certain cases, a debtor could be eligible to have some secured debt discharged as well. However, it is important to keep in mind that secured debts have liens attached. The debt may be dischargeable, but the creditor has the right to recover the property attached to the secured debt. For example, if you have a mortgage, you may have the debt discharged, but the creditor will take back the house. The same applies to vehicles. If you do not want the loan on a car hanging over your head, you can get the debt discharged. The creditor will repossess or obtain funds from the sale of the vehicle through the bankruptcy proceedings once you indicate your intention to surrender it.

Depending on your circumstances, it may be beneficial to surrender property on secured debt. A skilled bankruptcy attorney can evaluate your case and verify whether it is to your advantage to let the creditor recover secured property. Chapter 7 bankruptcy lawyers are a valuable asset in bankruptcy proceedings. They can provide crucial legal guidance and essential representation.

James R. Jones, Attorney at Law, is a consumer and small business bankruptcy attorney who is committed to delivering exceptional Chapter 7 bankruptcy legal services. Contact our firm in Woodlands, TX to schedule a consultation.

How to File for Chapter 7

To determine if you’re able to file Chapter 7, we provide an in-depth 30-minute consultation with all clients. We ask that you provide us with income data so we can put it to the Means Test. If you do qualify, we start to strategically understand and approach your debts. Our goal is to see all or as much as possible of your unsecured debts discharged. And, if you’re not eligible for Chapter 7, we’ll let you know right away and advise a different strategy.

To see if you qualify for Chapter 7 Bankruptcy filing or to consult with a knowledgeable attorney about bankruptcy options, contact James R. Jones, Attorney at Law today by calling (713) 992-2039.

James R. Jones, Attorney at Law

Call Us Now To Get Started
(713) 263-3888