When it comes to chapter 7 bankruptcy in Keller, TX, the trustee cancels several (or all) of the person’s debts. At the same time, they can also sell (liquidate) part of the individual’s property to pay their creditors. Chapter 7, also called “liquidation”, is named that way because personal property is liquidated. The following is an overview of chapter 7.
The costs associated with chapter 7
This particular bankruptcy process lasts about four months or more. It involves deposit and administrative fees and usually requires only one appointment at the courthouse. Filers must also hire a credit advisor from an organization approved by the trustee. Chapter 7 bankruptcy in Keller, TX is not taken lightly, so it is best to understand what the entire process entails.
Who can file?
Folks will not be able to file chapter 7 if they have already filed and were approved for a “discharge” within the last seven years–depending on the type of bankruptcy filed. Depending on the person’s income, expenses, and indebtedness, they could easily complete chapter 13 if chapter 7 is not available.
Bankruptcy forms
To be eligible for chapter 7, individuals must complete a series of paperwork and file it with the bankruptcy court in their area. Basically, a person will need to indicate what type of property they have, their monthly expenses and current income, as well as their debts. Most countries allow folks to keep some equity in their home, clothing, furniture, government payments (like pensions or Social Security), and other necessities, like personal vehicles.
The property the person owned and the money they spent in the previous 24 months, and any property he or she sold or donated can be shelved during the process.
Automatic suspension
A person filing for chapter 7 must realize that the process enforces a “relief order”. The automatic suspension is designed to immediately stop creditors from collecting what is owed. This means, at least temporarily, that creditors are legally prevented from seizing a person’s salary, emptying their bank account, repossessing their car, house or any other property.
