Chapter 7, bankruptcy is the most common form of personal bankruptcy. If you have a choice, Chapter 7 is a faster and easier form of bankruptcy. Chapter 7 effectively eliminates your debt without having to complete a payment plan. Most Chapter 7 cases are completed in three to six months.
Your income must be at or below your state or region’s median income to be able to file Chapter 7. If you make more, you will be switched to a Chapter 13 bankruptcy and make payments on your debt over a three to five-year period depending on your income and how much debt you owe.
At the end of Chapter 7 bankruptcy, your qualifying unsecured debt will be eliminated. Your secured debt, such as your mortgage or car note or remain, and you will need to continue to make payments if you want to keep the collateral.
Very few people that file Chapter 7 will lose any of their assets due to the exemption laws. If your state allows it, you can choose the federal exemptions instead if they are more favorable to the outcome of your case.
If you would like more information on chapter 7 or other forms of bankruptcy, contact a Fort Worth bankruptcy attorney today.