Debt Liquidation and Discharge – Chapter 7
There are times when individuals, or business managers, come to the realization that despite their efforts, there is simply no way that they can make their business succeed, and pay back their debts, even in cases where the creditors are very lenient. If there is no home to protect or the business is no longer salvageable, Chapter 7 bankruptcy may be the most viable option.
Filing for bankruptcy under Chapter 7, allows individuals and businesses in financial distress to discharge certain debts and liquidate assets—including debts related to home foreclosure—to pay off creditors. At the law office of Dwain Downing, our firm assists individuals and businesses in taking advantage of bankruptcy protection benefits, as they pursue a good-faith effort to resolve their financial troubles.
Chapter 7 is not the appropriate solution for all situations. While Chapter 7 is the right approach for many Texans and business owners, it may not be the best option for people with the income to repay debt under better terms, or for any company that wishes to remain in business. My office is experienced with Chapter 13 bankruptcies as well. Contact our office to discuss the ideal approach that fits your personal and financial needs.
The Bankruptcy "Means Test"
Recent changes in bankruptcy law have left many people believing that qualifying for Chapter 7 bankruptcy is virtually impossible. This is simply not true. The issue of qualifying for bankruptcy has not changed, only the process to determine the type of bankruptcy a debtor is eligible for and certain other required actions have changed.
Any individual, partnership, corporation, or other business entity can file for bankruptcy by passing a "means test," where the court looks at a debtor’s average income six months prior to filing and compares it to a median income established for the state of Texas. If the debtor's average income is below the median amount, he or she may file under Chapter 7. If the debtor's average income meets or exceeds the median, he or she generally must file for Chapter 13 bankruptcy. The Texas bankruptcy attorney, Dwain Downing can review your financial situation to determine which types of bankruptcy you qualify for.
Call Us for Bankruptcy Help Today: (817) 860-5685
The means test and Chapter 7 process can be quite complicated. Our knowledgeable staff will explain and guide you through the entire process, answer your questions, and keep you informed on the progress of your case. At the Law Office of Dwain Downing, we pride ourselves on standing by your side throughout your entire case. Sound legal advice and excellent client service are the foundations upon which our law firm was built.
For sophisticated legal advice and assistance, contact my office for all your Chapter 7 Bankruptcy questions.
Debt Repayment and Reorganization - Chapter 13 Bankruptcy
Stop Foreclosure Through Chapter 13 Bankruptcy
If you're in a situation where your debts exceed your capacity to pay them, you may have considered declaring bankruptcy. However, despite the fact that you desperately need debt relief, you can't afford to lose your home through foreclosure. For many of us, our residences represent the most significant investment of our lives. When complete liquidation is not an option for you, filing bankruptcy under a Chapter 13 repayment plan can help prevent the loss of your home. At the Arlington offices of Dwain Downing, our Texas bankruptcy firm allows individuals to find bankruptcy protection while they repay outstanding creditor claims in good faith.
For legal help from our Texas bankruptcy law firm that can help you get back on sound financial footing with creditors, contact us today.
Qualify under Chapter 13 and Save Your Home
Known as the wage earner's plan, Chapter 13 Bankruptcy allows those with an income to adjust outstanding debt and make installment payments over time. Anyone is eligible for Chapter 13 debt relief, if secured and unsecured debt is less than established amounts—even those self-employed or operating unincorporated businesses. The bankruptcy attorney of Dwain Downing can analyze your accounts to determine if you are eligible for debt relief under Chapter 13.
Filing for bankruptcy under Chapter 13 also establishes an automatic stay against creditors. This prevents them from taking any collection action against you, the debtor, or your property. A stay will stop foreclosure on a home while you resolve past-due mortgage payments and regular payments continue.
Law Firm Resolving Creditor Claims
While a debtor must file a repayment plan where a court-appointed trustee distributes disposable funds to creditors according to its terms, creditors may still receive less than full payment depending on the type of claim they have:
- Priority claims are paid back in full with few exceptions and include most taxes and bankruptcy process costs.
- Secured claims are those where collateral secures the debt such as bank loans for a home or car, which creditors have a legal right to reclaim.
- Unsecured claims are debt obligations such as credit card debt, which may not be paid back in full. Creditors may not receive as much as if the debtor assets were liquidated under Chapter 7.
Chapter 13 can also be beneficial to Texas entrepreneurs. If you are a business owner, your defined disposable funds will exclude any amount required for ordinary operating expenses. That means that, in some cases, your business may remain intact as you work to bring your accounts in order.
For competent legal advice and assistance, contact the Chapter 13 bankruptcy attorneys at the Law Office of Dwain Downing.
Call Our Texas Bankruptcy Law Firm: (817) 860-5685.
* The content that is provided on this website is to be used for general information purposes only. It is not meant to be legal advice and does not establish an attorney client relationship. It is recommended that you consult with an attorney on any legal matters
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