Chapter 7 Bankruptcy Lawyer

Each year, thousands of Texans clear their debt through Chapter 7 Bankruptcy.  Chapter 7 refers to the Chapter in the Bankruptcy Code where a qualified debtor can obtain a discharge, which bars creditors from taking legal action to collect unsecured debts, such as credit card debt, pay day loans, medical bills, and past due utility bills.  Chapter 7 Bankruptcy offers a quick way to resolve your debts when you are unabale to pay them back over time.  Unlike Chapter 13 Bankruptcy, Chapter 7 is designed to quickly discharge and eliminate your mounting debts for good.  If you are struggling with outstanding debts, Chapter 7 may offer a great solution. 

Although the process of Chapter 7 Bankruptcy seems complex and overwhelming, I have the experience and knowledge to assist you during this difficult time.  As a Chapter 7 Bankruptcy attorney, I can successfully guide you through this important process from beginning to end.  For a free consultation regarding Chapter 7, please call my office at  (713) 893-6204.  You can also send an  Email or complete the Free Case Evaluation.  The Law Office of Nicholas R. Westbrook looks forward to assisting you.  

IN MOST CASES, YOU CAN KEEP YOUR PROPERTY

Many people mistakenly believe that filing for Chapter 7 Bankruptcy will lead to a complete liquidation or sell of their personal property.  This is a huge misconception.  Although a Chapter 7 Bankruptcy Trustee will be assigned to your case and has the right to sell your "non-exempt" property, he or she cannot take and sell your exempt property.  In some cases, depending on the exemptions, the Trustee cannot even take your non-exempt property.  In the majority of our Chapter 7 cases, ALL property is "exempt."  This means our clients get to keep their property and start over with a clean slate.

In Texas, you can claim the following property as "exempt": (1) homestead; (2) wages; (3) one vehicle per filer; (4) personal property (including up to $30,000 worth of any personal property, including a car, for a single adult, and up to $60,000 worth of any personal property, including a car, for a family); and (5) 100% percent of certain health aids and religious books. 

Property that is considered "non-exempt" and subject to liquidation under Chapter 7 includes the following: (1) most student loans; (2) taxes; (3) debts incurred to pay non-dischargeable taxes; (4) domestic support and property settlement negotiations; (5) child support; (6) most fines, penalties, forfeitures, and criminal restitution obligations; and (7) debts for death or personal injury caused by operating a motor vehicle, vessel, or aircraft while intoxicated from alcohol or drugs.

CHAPTER 7 BANKRUPTCY PROVIDES QUICK RELIEF

In my experience, Chapter 7 cases move relatively quickly through the legal system. It's possible to receive a discharge within four to six months, depending on your particular case.  The more basic the case, the quicker it moves.

A Chapter 7 discharge refers to the successful removal of unsecured debts, such as credit card debt, medical bills, certain loans and judgments, deficiencies on repossessed vehicles, certain tax debts, and wage garnishments.  Debts that can't be discharged, or can only be discharged under special circumstances, include child support obligations, student loans, and many IRS tax debts.

ELIGIBILITY FOR CHAPTER 7 BANKRUPTCY

In 2005, Congress changed the eligibility requirements for Chapter 7 Bankruptcy.  Before filing, you must now complete the Means Test, which helps determine whether you qualify to file.  Unlike the exams you took in school, the  Means Test looks at your income, debts, and assets.  There is no right or wrong answer on this test.  Because Chapter 7 Bankruptcy is a powerful debt relief solution, the Courts want to ensure it's utilized soely by people who are truly in need.  Despite what you may have heard regarding the new laws, most of our Chapter 7 clients qualify for Chapter 7 relief.  If you do not qualify, there is still powerful relief through Chapter 13  Bankruptcy .

FILING THE CHAPTER 7 BANKRUPTCY PETITION

The process for filing a Chapter 7 Bankruptcy begins at my office.  During the FREE consultation, we will meet face to face to discuss your financial situation and determine whether Chapter 7 is the right option for you.  After this meeting, I will need to obtain paystubs for the last 6 months, tax returns for the last 4 years, information on your vehicle(s), information on your residence, and a list of your debts.  We will run a credit report to pull a list of all reported debts, but it will be important to search for any other missing debts, such as medical bills and pay day loans.  Once we have the required information, my office will begin preparing your Bankruptcy Petition and all necessary Forms and Schedules. 

Federal law requires that we include all of your personal financial information in the Bankruptcy Petition and Schedules.  It is critical to disclose all of your debts when filing for Chapter 7 Bankruptcy, including debts owed to family and friends.  You must also disclose all your property, including time shares, recreational vehicles, trailers, boats, other real property, etc.  Failure to list certain debts and/or property may be an honest mistake, but Bankruptcy Trustees view such inconsistencies as fraudulent, and you can be prosecuted accordingly.  So it is critical to be cautious and thorough before filing.

After completing the necessary forms, you will need to complete an approved credit counseling course. My office will recommend several inexpensive courses to choose from, many of which can be completed online.  Once you complete the credit counseling course, you will receive a certificate of completion, which my office will include with your Bankruptcy Petition.

Before filing your Chapter 7 Bankruptcy Petition, I will need to meet with you in person to sign and date the documents.  This is a requirement under the federal laws.  All fees for your case must be paid prior to filing, including the filing fee of $299 and your legal fees.  Unlike some firms, we offer a very flexible and manageable payment plan for Chapter 7 Bankruptcy cases.  I would be happy to discuss all the fees and payment plan options during your FREE consultation.

HOW FILING FOR CHAPTER 7 BANKRTUPCY PROTECTS YOU

After my office files your Chapter 7 Bankruptcy Petition, the Court will send a "Notice of Commencement of Case" to each of the creditors listed in your case to formally notify them of the Bankruptcy filing.  Your friends, bank, employer, and relatives will not be sent notice unless they are a creditor, a co-Debtor with you, or otherwise financially impacted by your Bankruptcy filing (e.g. your friend is also your landlord and you want to break the lease through the Bankruptcy process).  The act of filing will also create an "automatic stay," which prevents your creditors from doing anything against you (including, but not limited to, calling you, sending mail, filing a lawsuit, continuing a lawsuit, collecting on a judgment, etc).  In Chapter 7, the automatic stay specifically STOPS utility shut-offs, lawsuits and wage garnishments, and some IRS collection activities (including tax leveis and property seizures).

If you filed for Chapter 7 Bankruptcy in the past, the Court may not grant the automatic stay.  In these extraordinary circumstances, I can draft the necessary Motion with the Court to reinstate the stay and protect you during the case.  As an experienced Houston Bankruptcy lawyer, I can advise you about your unique circumstances and determine whether any of these limitations apply to your situation.

The automatic stay will remain in effect until one of the following occurs: (1) you successfully complete the Bankruptcy and receive a discharge; (2) the Court lifts the stay at your request or a creditor's request for various reasons; or (3) the property you wanted to protect is no longer part of the Bankruptcy estate.  In most cases, the automatic stay lasts for the duration of the Bankruptcy.  When you're finally discharged at the end of the case, the automatic stay becomes, in effect, permanent.  The debt will be erased, and you can move on with your life.

THE CHAPTER 7 TRUSTEE AND MEETING OF CREDITORS

If you have any secured property, we will prepare and file a "Statement of Intention" with the Bankruptcy Petition.  The Statement of Intention acknowledges whether you intend to keep any secured asserts or surrender them to your creditors.  After we file the Statement, you have 45 days to act on the plans set forth in the Statement and either surrender the property or make a payment.

The Court will ultimately assign a Chapter 7 Bankruptcy Trustee to oversee your case.  The Trustee is a federal employee appointed by the Court to monitor your Bankruptcy and determine whether it should be confirmed or dismissed.   They are usually attorneys or accountants with extensive Bankruptcy law and auditing experience.  The Trustee will review your Petition, make sure it is complete, and schedule a "Meeting of Creditors".  While the Trustee is required to be independent and disinterested in your case, he or she works primarily for the benefit of the your unsecured creditors.

The Meeting of Creditors, sometimes called the "341 Meeting" after the Section of the Bankruptcy Code that describes it, is a meeting held with your Chapter 7 Trustee, and any creditors that attend, about four to six weeks after we file your Bankruptcy with the Court.  This meeting is an opportunity for the Trustee and your creditors to appear and ask you questions under oath.  The Trustee will go through all the documents we submitted on your behalf and confirm whether everything is accurate, true and correct.  Although your creditors are permitted to question you during the Meeting, this rarely occurs.  In most cases, the creditors do not appear.

After the Meeting, your creditors have thirty days to object to your exemption claims and sixty days to object to the discharge of certain debts (based on specific statutory reasons).  The Trustee can also move to dismiss your case during the 60-day time period, if he or she finds that you abused or violated any of the rules or laws under the Bankruptcy Code.  If no objections are filed by any creditor, and the Chapter 7 Trustee does not find that your case is "abusive", then you will likely receive your Chapter 7  Bankruptcy discharge once the 60-day period elapses.  At that time, you will finally be free from your unsecured debts.

Before the Court discharges your case, you must complete an approved debtor education course.  My office can recommend several inexpensive courses to choose from, many of which can be completed online.  Once you complete this second online course, you will receive a certificate of completion, which we will file on your behalf. 

LEARN MORE ABOUT CHAPTER 7 BANKRUPTCY TODAY

If you are struggling with your finances and need a quick way to eliminate your debts, Chapter 7 Bankruptcy may offer the relief you need.  As an experienced and dedicated Chapter 7 Bankruptcy attorney, I can offer advice on how to proceed based on your situation.  You and I can meet face to face to explore your options. For a free consultation, please call my office today at (713) 893-6204.  You may also contact me through  Email or the Free Case Evaluation.  I look forward to helping you become debt free.  The road to financial freedom starts here. 

3730 Kirby Drive #1200, Houston, TX 77098 (713) 893-6204  ‎ Google Reviews |  Website |  Directions