Every year, thousands of people file for Chapter 7 bankruptcy, but even then, there are thousands more who should file but don’t. This is often due to the fact that too many people have no idea what bankruptcy is, what it entails, or what it can do for you. So, we’re going to answer some commonly asked questions about bankruptcy.
What Is Chapter 7 Bankruptcy?
Bankruptcy was created to offer you a new start. It allows you to completely discharge some or all of your debt so that you can walk away with no liability and begin rebuilding your credit and your life.
What Debts Can Be Discharged?
Most, if not all, of your unsecured debts will be completely discharged once you complete bankruptcy, including medical bills and credit card debt. There are a few types of debt that are difficult to discharge but not totally impossible, including student loan debt. Debts that are not dischargeable include child support, alimony, taxes due in the last three years, or any debts accrued by fraud.
How Long Does Chapter 7 Bankruptcy Take to Finish?
That’s an easy one. Chapter 7 bankruptcy typically takes as little as three or four months from start to finish. Just think, three months from now you could potentially be debt free!
How Much Property Will I Have to Give Up?
Actually, it is quite rare for people who file Chapter 7 bankruptcy to have to give up any of their possessions. Because Texas offers such generous bankruptcy exemptions, petitioners are usually able to keep most of what they own during Chapter 7 bankruptcy.
Am I Qualified to File Chapter 7 Bankruptcy?
In order to determine whether you’re qualified to file Chapter 7 bankruptcy, you will have to take a bankruptcy means test. The test will gauge your current financial situation and your ability to repay the debts.
Filing for Chapter 7 bankruptcy is not a shameful act, and the bankruptcy lawyers with Shuster Law Firm PLLC can help guide you through the process, helping to get you get the best deal possible.