Arlington, TX Chapter 7 Bankruptcy Attorneys

The prospect of having to file for bankruptcy is terrifying for most people, but only because they don’t understand what it is and what it can do for them! If you’re in over your head in debt that you can’t repay, filing for bankruptcy won’t ruin your life – it will actually give a positive boost to your financial future by discharging your debt. Chapter 7 bankruptcy is one type of bankruptcy process that may be in your best interests and that our law firm can help you navigate. Call our Arlington Chapter 7 bankruptcy attorneys today to schedule a free consultation. Learn how we can help you get a fresh start! 

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, also known as “liquidation” bankruptcy or “straight” bankruptcy, is the simplest, quickest type of bankruptcy available to consumers in debt. When you file for Chapter 7, the court will issue a legal order known as an automatic stay. This will immediately prevent creditors from harassing you and will halt all collection actions. You’ll stop getting phone calls and letters; any repossession efforts will cease; foreclosure will pause, if you’re in foreclosure; your wages will stop being garnished, if applicable. 

Then the court will appoint a non-biased trustee to oversee your case and your assets. A meeting with creditors will be held that you are required to attend and answer questions at (and it is highly recommended to have legal representation at this meeting and at every stage of the process, which is where our Arlington Chapter 7 bankruptcy attorneys come in!). The trustee will determine how to sell your nonexempt property in a way that maximizes the return to your creditors. This language scares many people, but you won’t be left with nothing; not everything you own can be sold, and there are many legal protections in place for consumers. However, some or much of your property will have to be sold in order to repay your unsecured debts. 

At the end of the process, your remaining debts will be erased and you won’t have to pay them back. You can move forward with rebuilding your life and your credit! 

How To Know If Chapter 7 Is Right For You

Chapter 7 is income restricted, which means that you have to pass a means test in order to even qualify for this type of bankruptcy! If your current monthly income is less than or equal to the median monthly income in your state, you are likely eligible. Understanding the exact criteria can be confusing, but generally, if you don’t have a steady income, if you recently lost your job, or if you have a very low income, Chapter 7 may be the right kind of bankruptcy to file for! 

There are numerous benefits offered by Chapter 7. For one, it may only take you anywhere from four to six months or less before the process is complete and your debts are officially discharged. Your debt-to-income ratio will immediately decrease, which could even begin improving your credit score. You won’t be stressed out because creditors have to stop bothering you, and you will be required to undergo financial education which can equip you with tools to start making better financial decisions going forward that you may not have known about! 

How Our Arlington Chapter 7 Bankruptcy Attorneys Can Help

Chapter 7 bankruptcy can be complicated. There’s lots of paperwork involved, as well as many court communications and creditor negotiations. You have rights, but you risk getting taken advantage of if you don’t have an attorney you trust who can explain them to you and guide you to the best resolution! Our Arlington Chapter 7 bankruptcy attorneys have over 20 years of collective experience. Our lead attorney, Ted Machi, is actually a board certified bankruptcy specialist, making him an expert you can rely on. Because we are a small firm, we are able to offer a level of dedicated, personalized attention that can make a difference in how smoothly your case proceeds! 

If you have questions about Chapter 7 bankruptcy, or think you may need to file, call today to book your free consult and learn about your next steps.