Changes in the insolvency laws have actually left many to erroneously think that they can no longer declare insolvency. This is not real.
A chapter 7 bankruptcy can also be referred to as liquidation; although with many cases there is little if any real liquidation included. Chapter 7 is described as liquidation since all your non-exempt properties are converted to cash to assist pay back the debt owed. It is best to talk to a proficient Texas insolvency lawyer if you are not sure whether Chapter 7 is the very best choice for you.
In general, chapter 7 best suits individuals:
with earnings at or listed below the state typical level
not able to adequately satisfy bills and living costs every month
having little or no possessions besides clothing and furniture
not declaring kid support or spousal support
without fines enforced for breaching the law
without income tax financial obligation
without student loans to pay back
Under Chapter 7 a person or service can ask the courts to eliminate the debts owed creating a new beginning. As quickly as you declare insolvency you are immediately approved a stay preventing creditors from contacting you to collect, garnishing your salaries, taking your house, lorries or other home, and/or shutting off your utilities.
In order to decide whether Chapter 7 is actually necessary for you as a debtor, you will have to take a Chapter 7 Way test. This test merely compares your income to the mean income in your geographical area for your household size. This guarantees you, as a debtor, are not attempting to abuse the system. Most of debtors will pass the ways test. Contact a Texas bankruptcy attorney right now to discuss your particular circumstance.