Changes in the bankruptcy laws have left many to erroneously think that they can no longer declare bankruptcy. This is not true.
A chapter 7 bankruptcy can also be referred to as liquidation; although with most cases there is little if any actual liquidation involved. Chapter 7 is referred to as liquidation because all of your non-exempt assets are converted to cash to help pay back the debt owed. It is best to speak with a skilled Texas bankruptcy lawyer if you are unsure whether Chapter 7 is the best option for you.
In general, chapter 7 best suits persons:
-> with income at or below the state median level
-> unable to adequately meet bills and living expenses each month
-> having little or no assets besides clothing and furniture
-> not declaring child support or alimony
-> without fines imposed for violating the law
-> without income tax debt
-> without student loans to repay
Under Chapter 7 an individual or business can ask the courts to erase the debts owed creating a fresh start. As soon as you file for bankruptcy you are immediately granted a stay preventing creditors from contacting you to collect,...
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