When debts overcome Houston residents, they may opt to turn to liquidation bankruptcy. Chapter 7 bankruptcy is one of the quickest ways to get a fresh foundation for a stronger financial future and is the choice that many individuals neck-high in debt choose.
As we reported last week, this is the route that octomom, the woman who gave birth in 2009 to octuplets and who has 14 children total, decided to go. But because she did not file the necessary paperwork with the courts, the judge threw out her request seeking discharge of unsecured debts.
When filing bankruptcy, there is certain, detailed, paperwork and information that must be provided to the court so it can rule on the case. Applicants must prove that they are unable to pay the debt that they owe. In this particular case, Suleman did not provide the proper documentation that was required in court to prove that she is without the means to pay the $1 million in debt that she estimates she owes.
What the court expected this unemployed, single mother to produce were a dozen financial statements and documents proving she is bankrupt. Apparently she was not aware of this, indicating that perhaps she did not have the benefit of experienced legal counsel.
Suleman claims she owes the estimated seven-figure sum to about 29 parties. But without the required documentation, the court ruled it would not move forward and dismissed her case. This means her creditors now have the right to move forward with their debt collection efforts, including a pending foreclosure.
Had her case not been dismissed because of failure to provide the proper documentation and the judge had found it proper to rule in her favor, Chapter 7 bankruptcy would have created conditions for the controlled liquidation of her assets in order to repay some of her debts, and the possible discharge of any remaining debt.
The take away here is that Chapter 7 bankruptcy can help Houston residents who are severely strained with debt and are unable to repay. However, it is crucial that all required documents be provided to the court. To avoid complications, it's best to work with an attorney when compiling this paperwork.