Fort Worth Chapter 7 Bankruptcy
Chapter 7 Overview
The Vida Law Firm, PLLC represents individuals and small businesses throughout the Ft. Worth, Texas area who are facing extreme debts and need assistance with Chapter 7 bankruptcies, which are the most common bankruptcies filed in the United States.
A Chapter 7 bankruptcy discharges most unsecured debt such as credit card bills, medical bills, and loans not backed by collateral, allowing you to obtain a fresh start. However, Chapter 7 bankruptcy in Fort Worth will only discharge debts you incurred before filing.
Many people fear filing for Fort Worth Chapter 7 because they believe they will have to sell their home, car, or other property. While it is true that you might have to sell some nonexempt property, a range of property is exempt in Texas. Exempt property generally includes most daily necessities, household items, family heirlooms, benefits under most insurance policies, and items you need for your trade or profession.
Although it is true that with a secured debt such as home or car loan, the creditor may be able to seize the property if you do not make payments, filing for bankruptcy puts a stop to foreclosure and repossession activity, giving you time to negotiate repayment plans with those creditors, often allowing you to keep this property, too. At the Vida Law Firm, PLLC, we draw on our extensive knowledge of all applicable state and federal laws to help you retain as much property as possible.
Debts That Cannot be Discharged
Several types of unsecured debts cannot be discharged in a Chapter 7 in Fort Worth. These include but are not limited to:
- Child support
- Spousal maintenance (alimony)
- Student loans
- Some tax debts
- Fines, penalties, or restitution owed to the federal government
Additionally, debts that you did not include in your filing paperwork cannot be discharged. As a result, it is in your best interest to be forthright about all of your debts.
If your debts are largely made up of non-dischargeable debts, a Chapter 13 bankruptcy may be more appropriate option to pursue; an experienced attorney can advise you on your options and help you determine what is best for your particular situation.
Business Chapter 7 Bankruptcy
Businesses may also file Chapter 7 bankruptcy. Upon filing a Chapter 7 bankruptcy, a corporation must cease operating; the business is then typically liquidated, with the proceeds going to creditors to repay debts. In some circumstances, the trustee may choose to continue operating the business during bankruptcy proceedings.