There is a wealth of information out there about Chapter 7 bankruptcy, but in most cases people don’t take the time to research the basics or consult with a Dallas bankruptcy lawyer about the process. When making such a big financial decision it helps to start at the very beginning. It is important to understand what Chapter 7 bankruptcy is and what it can and can’t do for your financial situation.
Chapter 7 Bankruptcy Basics
Chapter 7 is known as liquidation bankruptcy. It is a process that allows you to bankruptcy is a wipe out debts through liquidation of your non-exempt assets and property. If you are found eligible to file a Chapter 7 through the means test, a bankruptcy trustee is appointed to your case. The trustee is the person who collects your available assets, sells those which can be sold, and uses the resulting funds to pay back those debts that can be paid in a certain order established in the bankruptcy code. After the non-exempt property and assets are used for repayment, any outstanding debts are discharged through the court, and you are free of the obligation.
It is important to note that there are countless exceptions, peculiarities, and tiny details that make each case totally unique. Because everyone has a unique financial situation, not all are eligible for bankruptcy. Some debts can’t be discharged in bankruptcy, among them student loan debts and many taxes.
While the Chapter 7 process is designed to help many people get out from underneath crushing debt, the maze of paperwork, exemptions, exceptions, and rules surrounding the process can be bewildering. It is extremely important to consult with a Dallas bankruptcy lawyer to help navigate these turbulent waters is always the best bet.