Benefits of Chapter 7 Bankruptcy
The policy behind United States bankruptcy law is to provide honest debtors with a way out or a fresh start. These laws are designed to help debtors, not to punish them, and Chapter 7 bankruptcy is an excellent example of this policy in action. The primary function of a Chapter 7 bankruptcy filing is to bar most creditors from taking any action to collect upon outstanding debt, essentially eliminating what debt remains to allow the debtor to retain what they have left and begin anew.
If you have become overwhelmed with debt, you may be eligible to file for Chapter 7 bankruptcy and escape the burden that you are currently facing. Contact an experienced and knowledgeable Houston Chapter 7 bankruptcy lawyer at the Russell Van Beustring P.C., today at 713-973-6650 to learn more about your legal options.
Property You May Retain
With Chapter 7 bankruptcy, some of your belongings may be liquidated in order to repay creditors. However, one of the primary advantages of filing for Chapter 7 bankruptcy is that you will be allowed to retain limited assets. According to the bankruptcy code, the following property is generally exempt from liquidation:
- Part of your homeowner’s equity
- Certain personal items
- Motor vehicles, up to a specific value
- Most pensions and IRAs
- Your tools of trade of up to a certain value
Additionally, Chapter 7 bankruptcy offers many other benefits, including protection from creditor harassment. Overall, Chapter 7 allows distressed debtors to begin again without the crushing burden of their debt.
If you are facing seemingly inescapable debt, a Houston bankruptcy attorney from the Russell Van Beustring P.C., can help you regain financial stability through filing for bankruptcy. Call our office today at 713-973-6650 to learn more about how Chapter 7 may be the answer to your debt problems.