Dallas bankruptcy filings usually consist of Chapter 7 and Chapter 13 bankruptcies. Allen Stewart P.C. is a reputed bankruptcy attorney in DFW, guiding clients through the bankruptcy process every day and helping our Dallas neighbors to get the debt relief they need. It makes sense to talk to somebody who knows the ins and outs of bankruptcy law and can advise you in the right way regarding your Dallas bankruptcy filings. Our consultations are FREE for everyone. Schedule your appointment today.
Filing Chapter 7 Bankruptcy in Dallas
A Chapter 7 bankruptcy allows consumers to get rid of unsecured debt (if not all unsecured debt, then most unsecured debt!). Exceptions would be student loan debt, IRS debt, and certain criminal obligations that can’t be erased by bankruptcy. Most of what people have in the way of consumer debt can be affected by Chapter 7 bankruptcy. It does not get rid of a security interest. So, if you own a house or a car, you can’t just file bankruptcy and quit paying on those things and still be able to keep them.
What’s the Difference Between Filing a Chapter 7 and a Chapter 13
The main difference between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy is that in Chapter 13, you’re required to make a payment amounting to your disposable income to a Chapter 13 Trustee for a period of three to five years. In a Chapter 7 bankruptcy, you won’t be required to make those monthly payments to a trustee. You’ll just need to disclose all of your assets and liabilities, and you can discharge your dischargeable debt. With a Chapter 7, this takes only three or four months opposed to three to five years with a Chapter 13.
Chapter 7 bankruptcy filings work best for people who are current on their secured debt, which are usually car payments and house payments, but they have some serious unsecured debt problems that are eating up their disposable income.
When a client comes to our office with a financial problem, we evaluate their situation and advise them accordingly. Sometimes Chapter 13 is the best tool to use, but Chapter 7 can also be an option.
Is Filing a Chapter 7 Better than Filing a Chapter 13 Bankruptcy?
While Chapter 7 is a popular bankruptcy filing in Dallas, it is not available for all who wish to use it, and each individual’s own circumstances will determine if Chapter 7 is better than Chapter 13 or vice-versa. Chapter 7 will not stop delinquency on a mortgage payment or car. Again, you must be current on your secured debt and be behind on a lot of unsecured debt to file a Chapter 7 bankruptcy.
Filing Bankruptcy is Not Always the Answer
Quite often, we explain to people what bankruptcy can do and what it can’t do. Bankruptcy laws exist to help people who have reached the end of their rope. It’s a last resort, not a first choice. During your consultation, we’ll go over all of your debt relief options with you and help you find a debt relief solution that best fits your short-term and long-term needs. Maybe that’s bankruptcy, maybe it’s not. One thing’s for sure; we will always shoot straight with you at Allen Stewart P.C.