Chapter 7 bankruptcy, customarily referred to as a straight bankruptcy is a liquidation proceeding and is the most common form of bankruptcy filed in the United States and a debtor may be an individual, a partnership, or a corporation or other business entity. The primary purpose for filing any bankruptcy case is to discharge, or release, debts. In a Chapter 7 bankruptcy proceeding, depending on your specific situation, your unsecured debt is eliminated and, usually within a period of 4 months, the case is completed all permitted dischargeable debts are discharged forever, thus providing you with an opportunity for a fresh start without the overwhelming financial hardship those debts created. Particularly, Chapter 7 can be effective in financial hardships such as credit card debt, judgments, garnishments, lawsuits, medical bills, payday loans, deficiencies from repossessions or foreclosures, business debt or business closure. This is achieved by the bankruptcy trustee gathering and selling your non-exempt property and converting the proceeds to cash for distribution to the holders of claims (the creditors). Additionally, a Chapter 7 bankruptcy permits you to keep assets distinguished as exempt, which includes houses, cars and retirement accounts. While a partnership, corporation or other business entity is eligible to file a Chapter 7 bankruptcy, they are not eligible for discharge.
It is important to note that, exempt and non-exempt property, and secured and unsecured debt, is governed by the U.S. Bankruptcy Code which can be confusing and difficult to decipher on your own, so although we can generally guide you with the resources available on this page, we encourage and recommend that you speak with your local, Houston attorneys at Tran Singh LLP experienced in Chapter 7 bankruptcies to go over the particular details of your situation.
A Chapter 7 bankruptcy proceeding begins when the debtor files a petition with the bankruptcy court serving the area where the individual lives or where the business debtor is organized or has its principal place of business or principal assets. Customarily, your case will be held at the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, which is located in Downtown Houston and serves the following counties: Austin, Brazos, Colorado, Fayette, Fort Bend, Grimes, Harris, Madison, Montgomery, San Jacinto, Walker, Waller and Wharton. The filing fee that the courts must charge for a Chapter 7 bankruptcy is $338, consisting of a $245 case filing fee, $78 miscellaneous administrative fee and a $15 trustee, which must be paid to the clerk of court upon filing. However, under certain circumstances, with the court’s permission, individual debtors (not business debtors) may pay the filing fee in four (4) installments over a period of not more than 120 days after filing of the Chapter 7 bankruptcy petition.
Filing a Chapter 7 bankruptcy petition automatically stays, or stops, most collection actions against a debtor or the debtor’s property and creditors generally may not initiate or continue lawsuits, wage garnishments or even telephone calls demanding payments. The clerk for the bankruptcy court gives notice of the Chapter 7 bankruptcy proceeding to all creditors whose names and addresses are provided by the debtor. Essentially, this means that creditors cannot seek payment during the process and must stop all collection activities. Upon successful completion of your case, all dischargeable debts are discharged forever. Debts that are not dischargeable include domestic support obligations government backed student loans, and personal injury caused while intoxicated, among other things.
Individuals whose debts are primarily consumer debts are subject to a “means test" designed to determine whether the case should be allowed to proceed under Chapter 7. If your income is greater than the median income for your state of residence and family size, creditors and the U.S. Trustee may object to your case.
Additional requirements for individual debtors to file a bankruptcy proceeding under Chapter 7, or any chapter of the U.S. Bankruptcy Code, include attending credit counseling prior to filing and a personal finance management class after filing. There are also many additional statements, schedules and documents which are required to be timely filed. Conveniently located in Downtown Houston, Tran Singh LLP, is experienced in Chapter 7 bankruptcies and equipped to guide you through the bankruptcy process, to help you meet the various requirements, including filings required by the court, and advise you on the path to achieve your goals.
It is important to note that, exempt and non-exempt property, and secured and unsecured debt, is governed by the U.S. Bankruptcy Code which can be confusing and difficult to decipher on your own, so although we can generally guide you with the resources available on this page, we encourage and recommend that you speak with your local, Houston attorneys at Tran Singh LLP experienced in Chapter 7 bankruptcies to go over the particular details of your situation.
A Chapter 7 bankruptcy proceeding begins when the debtor files a petition with the bankruptcy court serving the area where the individual lives or where the business debtor is organized or has its principal place of business or principal assets. Customarily, your case will be held at the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, which is located in Downtown Houston and serves the following counties: Austin, Brazos, Colorado, Fayette, Fort Bend, Grimes, Harris, Madison, Montgomery, San Jacinto, Walker, Waller and Wharton. The filing fee that the courts must charge for a Chapter 7 bankruptcy is $338, consisting of a $245 case filing fee, $78 miscellaneous administrative fee and a $15 trustee, which must be paid to the clerk of court upon filing. However, under certain circumstances, with the court’s permission, individual debtors (not business debtors) may pay the filing fee in four (4) installments over a period of not more than 120 days after filing of the Chapter 7 bankruptcy petition.
Filing a Chapter 7 bankruptcy petition automatically stays, or stops, most collection actions against a debtor or the debtor’s property and creditors generally may not initiate or continue lawsuits, wage garnishments or even telephone calls demanding payments. The clerk for the bankruptcy court gives notice of the Chapter 7 bankruptcy proceeding to all creditors whose names and addresses are provided by the debtor. Essentially, this means that creditors cannot seek payment during the process and must stop all collection activities. Upon successful completion of your case, all dischargeable debts are discharged forever. Debts that are not dischargeable include domestic support obligations government backed student loans, and personal injury caused while intoxicated, among other things.
Individuals whose debts are primarily consumer debts are subject to a “means test" designed to determine whether the case should be allowed to proceed under Chapter 7. If your income is greater than the median income for your state of residence and family size, creditors and the U.S. Trustee may object to your case.
Additional requirements for individual debtors to file a bankruptcy proceeding under Chapter 7, or any chapter of the U.S. Bankruptcy Code, include attending credit counseling prior to filing and a personal finance management class after filing. There are also many additional statements, schedules and documents which are required to be timely filed. Conveniently located in Downtown Houston, Tran Singh LLP, is experienced in Chapter 7 bankruptcies and equipped to guide you through the bankruptcy process, to help you meet the various requirements, including filings required by the court, and advise you on the path to achieve your goals.
To qualify for a Chapter 7, consumer debts are subject to a "means test" designed to determine whether the case should be allowed to proceed under Chapter 7. Click below for more information.
Questions?
Ready to take the next step toward financial freedom, click below to be directed to our Initial Consultation Form.
Ready to take the next step toward financial freedom, click below to be directed to our Initial Consultation Form.
Have you scheduled an initial consultation with us?
Click below to navigate to the Consumer Bankruptcy Consultation Checklist, a guide prepared with you in mind, and summarizes the information and documentation you will need to provide for your case.
Click below to navigate to the Consumer Bankruptcy Consultation Checklist, a guide prepared with you in mind, and summarizes the information and documentation you will need to provide for your case.
Are you an existing Chapter 7 Client of Tran Singh LLP?
We encourage you to discover the valuable resources available to you by navigating to the pages through the links provided below.
We encourage you to discover the valuable resources available to you by navigating to the pages through the links provided below.
TRAN SINGH LLP
2502 La Branch Street | Houston, Texas 77004 | Phone: (832) 975-7300 | Fax: (832) 975-7301 | Email: [email protected]
DISCLAIMER AND LEGAL NOTICE
We are a debt relief agency. We help people file for relief under the Bankruptcy Code.
2502 La Branch Street | Houston, Texas 77004 | Phone: (832) 975-7300 | Fax: (832) 975-7301 | Email: [email protected]
DISCLAIMER AND LEGAL NOTICE
We are a debt relief agency. We help people file for relief under the Bankruptcy Code.