Chapter 7 Bankruptcy FAQ

Bankruptcy Lawyer in Beaumont & Houston

With over 40 years of combined experience in bankruptcy law, our team at the Maida Law Firm, P.C. understands the confusing nature of this area of law. If you are considering filing for bankruptcy, it is our goal to not only help you find a successful resolution to your case, but to also help you be informed regarding the different aspects of bankruptcy law. With a board-certified attorney on our team, you will be able to have peace of mind knowing that your case is in good hands should you choose to work with our team.

You can contact a Beaumont bankruptcy attorney from our firm at any time to schedule an appointment or you can look through the frequently asked questions below to get more information on this important subject. We have offices in both Houston and Beaumont.

Frequently Asked Questions

What makes Chapter 7 bankruptcy different?
Depending on your unique situation, there are different types of bankruptcy you can file under. One of the key things to remember in a bankruptcy case is that certain property may have to be sold in order to repay the debt. A trustee may be made responsible for categorizing the debtor's property and then selling it to discharge the debt. The stipulations for qualifying to file for Chapter 7 bankruptcy include an income of under $39,673 or a family of four's income that is less than $63,859. If you do not think you qualify for Chapter 7 bankruptcy, you can always contact an attorney to see if there are any other options available to you.

What possessions could you lose during bankruptcy?
One important question which people will have concerns about when determining whether or not to file for bankruptcy is what possessions they could lose. The goal of filing for bankruptcy is not to be in a worse situation than you were before, so losing your home, vehicles, or possessions is definitely something to be avoided. If you file for Chapter 7 bankruptcy, part of the deal is that you could lose your nonexempt property. There are some possessions, however, that fall into the category of exempt property, and this will be protected. This exemption varies from state to state, so it is important to discuss your case with a professional before deciding whether or not to file.

How does Chapter 7 bankruptcy affect lawsuits and taxes?
When it comes to losing your property during Chapter 7 bankruptcy, could you lose a settlement or verdict from a lawsuit? Could you lose a refund you obtained through taxes? The answer to this is that any property could be lost in Chapter 7 bankruptcy if it is considered to be non-exempt property. Usually, if the law decides that the property is necessary for you to survive day-to-day, it will be considered exempt property. Therefore, whether or not lawsuits or tax refunds will be able to be kept will differ on a case by case basis.

Could Chapter 7 bankruptcy help avoid foreclosure?
More and more people in Texas are facing threats of foreclosure. One option that people may considering in order to avoid losing their home is to file for bankruptcy. Is this a good alternative to foreclosure? One benefit of filing for bankruptcy is that creditors are required to immediately stop attempting to collect payments. Known as the automatic stay, it puts a hold on collecting payments. Once the bankruptcy proceedings have ended, however, the individual will not be able to keep their home without paying for it or making payments on it.

How does a reaffirmation agreement work?
A reaffirmation agreement is an agreement that can be come to between the debtor and the creditor. Rather than discharge a debt and lose the particular piece of property, the debtor could instead keep the property and work out a schedule or repaying the debt. This could be beneficial to the debtor because it allows them to keep their possession and is beneficial to the creditor because they get their money back. It is important to remember, however, that if the debtor fails to make payments on the property, the creditor has the right to repossess it. This is not an informal, verbal agreement, but must be filed with the court and entered into before the debt has been discharged. The debtor may also be able to keep a certain possession by making payments without entering into a formal reaffirmation agreement. This has to be completely voluntary and usually occurs between friends and family.

More questions? Contact our Houston bankruptcy attorneys today!

If you have more questions regarding Chapter 7 bankruptcy in Beaumont or Houston, please do not hesitate to get in touch with our team at the Maida Law Firm, P.C. We not only have years of combined experience on our side, but we offer a free case evaluation for prospective clients. You can let us know the details of your case quickly and easily and we will let you know exactly how we could help you. If you are considering filing for Chapter 7 bankruptcy, we could walk with you through every stage of the process and be there to answer questions and address concerns. Our main priority is that you are able to get back on your feet and get your finances under control. Please, contact a Beaumont or Houston bankruptcy lawyer from our office today to get started. Do not wait to get the help you need!

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