Benefits of Chapter 7 Bankruptcy
Chapter 7 bankruptcy is one of the most effective means of addressing excessive debt, and it has a variety of benefits that together allow those who are in extreme fiscal distress to get a fresh start on their finances. The most important function of Chapter 7 bankruptcy is to discharge any outstanding unsecured debt while simultaneously barring creditors from seeking collections. Additionally, debtors are allowed the debtor to retain certain amounts of property.
At Russell Van Beustring P.C., our experienced Katy Chapter 7 bankruptcy attorneys have the knowledge and resources to provide you with clear and effective guidance through the process of a Chapter 7 bankruptcy filing. To learn more about your legal options for eliminating excessive debt, contact our offices today at 713-973-6650.
Property Exemptions for Chapter 7 Bankruptcy
The reason that most debtors find Chapter 7 bankruptcy so attractive is that it allows people with heavy debts to completely discharge all outstanding unsecured debt, so long as it was not acquired in a fraudulent or abusive fashion. While Chapter 7 bankruptcy is essentially a liquidation process that sells off your assets in order to pay as much of your debt as possible, there are a variety of exemptions that will allow you to retain the following property:
- Alimony payments and child support paid to you
- Motor vehicles of a certain value
- A home with a value under a specific threshold
- Any pensions and IRAs
- Work equipment, or “tools of trade,” up to a certain value
- Personal items of up to a specific value
Many debtors find the prospect of bankruptcy to be daunting. However, these exemptions will allow debtors to retain almost all of their property in the Chapter 7 bankruptcy process, which is a major benefit of this type of bankruptcy.
If you are faced with overwhelming debt that appears to be impossible to pay off with your current income, the knowledgeable Katy Chapter 7 bankruptcy lawyers at Russell Van Beustring P.C. can help you to get a fresh start on your finances. Contact our offices today at 713-973-6650 for a free consultation to discuss the details of your situation and begin the process of filing.