Chapter 7 bankruptcy provides relief from personal debts. Often referred to as “liquidation bankruptcy”, Chapter 7 is the easiest and most common type of bankruptcy filed in the United States. This type of bankruptcy allows for the discharge of unsecured debt, such as loans, credit card debt and medical bills. Whether you are unable to pay your bills due to job loss, business struggles or any other unforeseen change in financial circumstances, if you qualify to file for bankruptcy under Chapter 7, many of your debts can be wiped out entirely, providing the opportunity for a “fresh start”.

However, the protections afforded by Chapter 7 bankruptcy are not absolute – certain types of debts are not eligible to be forgiven. Filing a petition under Chapter 7 of the U.S. Bankruptcy Code means having to make financial adjustments and an effort to satisfy your obligations to creditors. This could involve selling your property to pay your debts (although many types of property are exempt from the bankruptcy process). As a result, Chapter 7 bankruptcy is not right for everyone. But, if Chapter 7 bankruptcy is right for you, the process can resolve fairly quickly. For Chapter 7 filings, the time it takes to complete the bankruptcy process, from the initial application to obtaining debt relief, is typically three to six months. After this time period, you can start rebuilding your credit without the financial baggage that is currently holding you down.

Bankruptcy Attorney in The Woodlands Serving All of North Houston

Rebecca M. Moughon is an experienced attorney who helps debtors file for bankruptcy in the North Houston area. She can help you understand the implications of filing under Chapter 7 and help you weigh your options and alternatives, such as filing under Chapter 13 of the U.S. Bankruptcy Code. If your creditors keep calling and you are struggling to figure out what to do, contact us for a free consultation and we will arrange for you to speak with Attorney Rebecca as soon as possible.

Who Should Consider Filing a Petition for Bankruptcy Under Chapter 7 of the U.S. Bankruptcy Code?

Chapter 7 Bankruptcy is available for qualified individuals, corporations and other business entities. As you review your options, there are a number of factors to consider before determining if Chapter 7 is the optimal choice.

Generally speaking, filing under Chapter 7 is likely to be your best option if:
Most of your debts are eligible for discharge. Credit card debt, medical bills and unsecured loans are eligible to be discharged under Chapter 7. Alimony, child support and student loans are not. If you have a mortgage or car loan (or both), you may be able to have your loan forgiven; however, declaring Chapter 7 bankruptcy will not necessarily prevent the bank from foreclosing your home or repossessing your car.
A Payment Plan Wouldn’t Work for Your Situation. Most people must pass a “means test” before they can file under Chapter 7. If your financial circumstances are such that you could pay some or all of your debts over time, then you may be required to enter into a payment plan under Chapter 13. If your income does not make this a realistic possibility, you may have to file under Chapter 7.

Of course, everyone’s situation is unique. Filing for bankruptcy is not a decision to be taken lightly, as it can impact your life both personally and professionally for several years to come. The nature of your debts, the extent of your assets and various other factors will all help determine your ideal path forward. At the Law Office of Rebecca Moughon, we can help you make a smart decision about your financial future. Attorney Rebecca will work with you personally to ensure all your viable options are explored and to maximize the benefits of your bankruptcy filing.

Schedule Your Free Chapter 7 Bankruptcy Consultation

If you are thinking about filing for bankruptcy and would like more information about the benefits and limitations of filing under Chapter 7, we encourage you to contact us for a free initial consultation. To speak with bankruptcy Attorney Rebecca M. Moughon in confidence, please call (832) 653-9371 or inquire online today.