Dallas Chapter 7 Bankruptcy Lawyer

When most people think about bankruptcy, they are probably thinking about Chapter 7 bankruptcy. Also called “straight bankruptcy” or “liquidation bankruptcy,” Chapter 7 bankruptcy allows the filer to discharge most, if not all, of his or her unsecured debt. Unsecured debt is that which is not directly related to property.

Examples of unsecured debt include, but are not limited to:

• Credit card debt
• Unpaid utility bills
• Medical expenses
• Some back taxes
• Wage garnishments

You may also be able to eliminate some of your secured debt. Secured debt is that which is tied to property, such as a home mortgage or auto loan. If your home loan company is threatening foreclosure or your auto loan company is threatening repossession, you may be able to deal with these types of debt through Chapter 7 bankruptcy. Our bankruptcy attorneys can walk you through the process for filing for Chapter 7 bankruptcy in Dallas and help you understand your options.

Not everyone will qualify for Chapter 7 bankruptcy. A “means test” was introduced in order to ensure that those capable of paying back what they owe do so under the right bankruptcy chapter. The means test examines the applicant’s disposable income and measures his or her income against the median household income in the area. Request a free consultation with the Dallas Chapter 7 attorneys at our bankruptcy firm to find out more.

If you don’t qualify for Chapter 7 bankruptcy, you may be able to file a Chapter 13 bankruptcy. You don’t have to take a means test to qualify for Chapter 13, but you must have enough money to pay some of your debts. The bankruptcy court will evaluate your disposable income, and you will have to come up with a payment plan that will allow you to repay some of your debts over three to five years. After you complete your payment plan, many of your debts can be discharged, or eliminated.

• You must undergo credit counseling within 180 days before filing
• As soon as you file your petition, the automatic stay will go into effect
• 20-40 days after you file, a creditors meeting will take place
• After the creditors meeting, you will have 45 days to reaffirm debts
• You must also complete a second credit counseling course within 45 days
• Debts will typically be discharged within three to four months

The first step in the Chapter 7 bankruptcy process is to file your bankruptcy petition. This will require a significant number of forms. On the forms, you will list the following information:

• Contact information
• Employment information
• Property and other assets
• Debts
• Income
• Monthly expenses
• Any property you have sold in the last two years

Your Dallas attorney can help you with the necessary forms to file Chapter 7 bankruptcy. It’s important to include all of this information in the beginning, otherwise your bankruptcy case may be dismissed or delayed.

After you file for bankruptcy, your bankruptcy trustee will set a date for a Meeting of Creditors. Although your attorney may represent you at most bankruptcy hearings, you will likely have to attend the 341 Meeting of creditors. In limited circumstances, you may be able to attend the meeting via phone.

At the 341 Creditors’ Meeting, you and your Dallas attorney will appear along with your Chapter 7 bankruptcy trustee. Instead, you will meet in a formal meeting room. Your creditors would be able to attend; however, very few creditors actually attend the Meeting of Creditors. If a creditor disputes your statements or has claims of fraud, then they may appear. Your Chapter 7 bankruptcy attorney can help you prepare for the Meeting of Creditors.

Chapter 7 bankruptcy is often called “liquidation bankruptcy” because people who file this type of bankruptcy often liquidate their property to repay creditors. While unsecured debts may be directly eliminated, you may be required to return property to creditors or liquidate and pay creditors for some secured debts. Your bankruptcy trustee would first determine which property is exempt and which is nonexempt, and you may be able to keep that which is exempt. Your nonexempt property is that which may be liquidated through Chapter 7 bankruptcy.

Another situation that is common in Chapter 7 bankruptcy involves a creditor or trustee “abandoning” property. It may be too difficult for a creditor to participate in your Chapter 7 bankruptcy, so instead, they will abandon that property and the debt. In that situation, you will get to keep the property, even if it is nonexempt. A Chapter 7 attorney can help determine which of your assets in Dallas may be exempt from bankruptcy.

One of the primary goals with Chapter 7 bankruptcy is the discharging of most or all your debt. This process can be complicated, but the end result is that your debts will be wiped out and you will have a clean slate. However, the debt that is not dischargeable may still remain, including:

• Statutorily nondischargeable debts, including taxes, child support, alimony, and student loans
• Debts the court declared nondischargeable, including anything objected to by a creditor

You may still have to manage these nondischargeable debts after Chapter 7 bankruptcy. Your Chapter 7 bankruptcy attorney can help you with debt management in Dallas so that you don’t get back into a difficult situation financially.

To better ensure the ultimate success of your case, schedule a consultation with the experienced legal team at Allmand Law Firm, PLLC today. We take great pride in advocating for our clients’ interests and we do so in a focused, efficient manner. When you’re in need of debt relief, you don’t have time to waste.

One of the first things our bankruptcy lawyer team in Dallas will advise you to do (if you choose to file for Chapter 7 bankruptcy) is to fulfill your pre-filing educational requirement since you won’t be able to submit your bankruptcy petition to the court until this requirement has been completed.

Whether you’re sure or unsure of whether filing for bankruptcy is the best approach for your financial situation, please connect with our firm today. We’ll help you make an informed decision so that you can start building a strong financial future via whichever debt relief option is best for your unique circumstances. We’ll ensure that you understand each step of the process and will treat your case with dedication and focus. Struggling with debt is a tough situation, to put it mildly. Let a Dallas Chapter 7 bankruptcy lawyer help you regain a strong financial foundation moving forward.

As the largest bankruptcy filing firm in the state, Allmand Law Firm, PLLC, has already helped thousands of individuals find relief from their debt. Find out how we can do the same for you by contacting our Chapter 7 lawyers for a free review. We can help you determine whether or not Chapter 7 bankruptcy is the right course of action for you.

Your first consultation is free, so call our bankruptcy lawyers at (214) 884-4020 as soon as possible.