Chapter 7 Bankruptcy Attorney in Waco, TX
Most people and small businesses that file a bankruptcy with our law office file a Chapter 7 bankruptcy case. Chapter 7 is the most frequent type of bankruptcy filed in the United States. After we file a Chapter 7 case, our clients typically receive an order discharging them from virtually all of their debts within three to four months.
When a Chapter 7 is filed, the debtor is discharged from all of debt, except student loans and child support. Clients are discharged from credit card debt, payday loans, lawsuit judgments and medical bills. Clients are also discharged from their home loans and car loans. However, if they want to keep their home and their cars, they must continue to pay the creditors that loaned them the money to purchase their home or their cars.
Filing for Chapter 7 bankruptcy can bring you enormous peace of mind, since it will immediately put a stop to creditor harassment, garnishment, foreclosure, car repossessions, and can actually discharge old IRS debt. If you are facing a home foreclosure we will file a Chapter 7 case for you, get rid of virtually all of your unsecured debt and assist you in requesting a loan modification of your home loan with your home loan lender. If you do not want to retain your home, a Chapter 7 bankruptcy case will discharge your debt to that lender so that you no longer owe any money for the purchase of that home, even if the lender sells the home for a loss at a foreclosure sale.
Keep in mind though that even though student loans are unsecured debts, they usually cannot be discharged in a Chapter 7 bankruptcy unless you are completely disabled. Also, you cannot discharge child support in a Chapter 7 bankruptcy case.
What is Chapter 7 Bankruptcy?
Chapter 7 may seem like a scary proposition. You may think that you are going to lose your home or cars if you file a chapter 7 bankruptcy case. This is simply not true. You can keep your home and car as long as you remain current on your payments to the creditors that loaned you the money to purchase those assets. It might seem strange to be able to continue paying some creditors and be discharged from paying other creditors, but this is often the best way to get the financial relief you need without losing your most important assets.
Many of our clients believe that they will never be able to obtain credit in order to purchase a car or a house if they file a bankruptcy case. This is also simply not true. Remember that millions of Americans, like you, have found themselves in a financial situation that they cannot fix without resorting to our U.S. bankruptcy laws. Lenders have now learned that there is a true market for customers that have had a financial hiccup and have to file a bankruptcy case. They realize that a consumer who has filed a Chapter 7 bankruptcy case is actually a better credit risk than a consumer sitting with overwhelming debt. We have developed a relationship with a local car dealership that places virtually all of our clients in late model cars after their bankruptcy cases are filed. Our clients rid themselves of the cars that they are “under water” on and get financing on another vehicle even before their Chapter 7 discharge is received. This “Fresh Start” financing helps rebuild the client’s credit as our law firm discharges all of the old debt that has caused the bankruptcy filing. Many of our clients also purchase homes approximately two years after their Chapter 7 bankruptcy filing. We get rid of your debt and request the credit bureaus change your credit reports to show that all of your debt has been discharged in your bankruptcy case. We then give you the contacts to rebuild your credit. We pride ourselves in not only helping you get rid of your debt but also assisting you rebuild your credit.
So how does Chapter 7 bankruptcy work?
The first thing we’ll do is sit down and review your debts and assets. You’ll need to provide the names and addresses of your creditors, and the amount you owe to each one. If you have assets you want to keep, such as a car or home, we’ll note in your Chapter 7 filing that you want to keep making payments on them. You also list all of your assets and we work with you to claim all of your assets as exempt in your bankruptcy case. After you pay your attorneys’ fees to our firm, we will file your Chapter 7 bankruptcy case for you. We offer a simple payment plan that lets you pay your attorneys’ fees to the firm over time. While you are on our payment plan, you can refer all of your creditor calls to us. We return those calls for you and tell those creditors and collection agencies that you have retained our firm to represent you in filing a bankruptcy case and that under the Fair Debt Collection Practices Act all future contact regarding your debt must come through our office. If you receive letters from collection agencies and creditors, we also respond to those letters for you for no extra charge while you are on our payment plan. In other words, while you are paying us we are telling your creditors to cease contacting you and advising them that under federal law all contact on your debts must occur through our office. So many of our clients find this service, which we provide to all of our clients at no additional cost, gives them great peace of mind and helps stop those terrible collection calls and letters.
After your case is filed, the Court will schedule a Section 341 meeting which you and Ms. Shank will attend together in a conference room outside the Waco Bankruptcy Court. The Bankruptcy Judge does not attend the hearing. A local attorney, James Studensky, is appointed as the Chapter 7 Trustee. At the meeting, Mr. Studensky reviews the paperwork that you and Ms. Shank prepared and filed in your case. Mr. Studensky asks questions about your case. Ms. Shank will be able to tell you virtually every question he will ask and will be there to assist you answer those questions. You will then receive your Chapter 7 discharge approximately 60 days after that Section 341 meeting.
Call our Chapter 7 Bankruptcy Attorney today to schedule a free initial consultation to discuss your financial situation and determine if a Chapter 7 bankruptcy case can help you rid yourself of overwhelming debt and get on the road to a fresh start!