What is Chapter 7?

Chapter 7 Attorneys Serving the Fort Worth Area

If you simply cannot make ends meet, you should consider a Chapter 7 bankruptcy. Filing for a Chapter 7 bankruptcy can be ideal if you have overwhelming credit card debt, medical bills, or are facing lawsuits over your debts. Contact the attorneys of Fears | Nachawati with any questions.

Many people try to survive as long as possible by shifting debt from one credit card to another. For 6-12 months, you can keep sending credit card checks from one company to another to stay afloat. But you will only be delaying the day when you must file for bankruptcy.

The Benefits of Chapter 7

Chapter 7 bankruptcy is sometimes known as "liquidation," because it involves paying off part of your debt by selling off assets that are not necessities. Once you have liquidated the assets, your debts are "discharged," or wiped clean. Few people, if anyone, actually pay off all their debts before they are discharged.

When you file for Chapter 7, you are making a good-faith effort to resolve your financial troubles instead of just delaying them. So as soon as you file, your creditors must, by law, stop all harassment. And most wage garnishments must also cease.

Perhaps best of all, a Chapter 7 bankruptcy will quickly resolve your debt and let you start over from scratch. You credit will not be ruined -- in fact, you can rebuild your credit relatively quickly after a Chapter 7.

The Potential Disadvantages of Chapter 7

At Fears | Nachawati, our Fort Worth attorneys do not want you to file for a Chapter 7 bankruptcy without first understanding the potential disadvantages. Our lawyers are here to do what is best for you, and we explain all the upsides and downsides of each option.

For instance, if you want to keep your house and car, you will still have to make payments on them during and after the bankruptcy process. In Texas, you cannot completely eliminate debts and still keep your house and car. However, you can keep a home and a vehicle for each adult of driving age while going through a Chapter 7. (See also Saving your Home and Car.)

What To Consider Before Filing Chapter 7 Bankruptcy in Fort Worth

If you are in financial trouble in the Fort Worth area, you are not alone. More than 1.5 million bankruptcy cases were filed during the fiscal year that ended June 30, 2010. Many of these cases were joint husband and wife filings, which conservatively equates to one person filing bankruptcy in the United States every 15 seconds!

Many people who are facing financial hardship believe that they are powerless to act and that the situation is hopeless. Fort Worth Bankruptcy attorneys meet these people every day and show them how to recover from overwhelming debt. If you are facing bankruptcy, there are a few things to do that will make the process considerably easier.

First, consult with an experienced Fort Worth bankruptcy attorney. The initial consultation is free, so discuss your financial situation and learn how the federal bankruptcy laws can help you and your family. Your Fort Worth bankruptcy lawyer can help you develop a bankruptcy strategy and explain what property is protected or at risk, and identify debts that can be discharged or that survive the bankruptcy.

Second, tighten your belt. This is the time to be financially conservative and begin your financial recovery. You and your attorney will construct a reasonable budget which will allow you to gain control over your finances during and after the bankruptcy case.

Third, before you make a large financial transaction, discuss the matter with your attorney. In many cases large financial transactions can undermine your bankruptcy case. Your bankruptcy attorney can advise you whether to pay your mortgage, car payment, credit cards, or repay a loan from a family member.

Fourth, seek out advice regarding any expensive item that cannot be protected in your bankruptcy. Rather than lose an item to the trustee, in many cases it can be sold and the proceeds used to pay ordinary expenses. Discuss this matter with your attorney.

Fifth, stop using credit. Credit transactions immediately before filing bankruptcy will send up a red flag to both creditors and to the bankruptcy trustee. These credit purchases may also be found non-dischargeable, or worse, fraudulent.

If you are in a dire financial situation, break the inertia of depression and discuss your options with an experienced bankruptcy attorney. Early attorney involvement can mean the difference between an easy and difficult bankruptcy case. Get the advice you need today and begin on your path to a financial fresh start.

Contact us with any Questions

At Fears | Nachawati, our Fort Worth Chapter 7 Bankruptcy lawyers are ready to answer any of your questions about Chapter 7 bankruptcy and whether it is right for you. Contact us any time. We maintain office hours 6 days a week and can meet with you in the evenings or on weekends. Flexible payment plans are available.

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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.