Houston Chapter 7
A Houston Chapter 7 bankruptcy is a very common and comprehensive form of personal bankruptcy that can help you get back on your feet. It is generally the simplest and fastest method of bankruptcy available to individuals, couples, families and small businesses.
When you file for Chapter 7 bankruptcy in Houston, all of your non-exempt personal assets are seized by the court and sold off, or liquidated. The monies raised by these sales are then used to repay your creditors. However, at the end of a Chapter 7 in Houston, you are free of debt.
If a Houston Chapter 7 bankruptcy might make sense for you, contact Swindell & Associates, P.C. today.
Houston personal bankruptcy
In order to qualify for Chapter 7 in Houston, you must first pass a means test. This test was created due to several changes to the United States Bankruptcy Code passed into law in 2005.
The means test compares your average income for the past six months (at your current income rate) to the median income for households of your size in your state. If your income is less than or equal to this median value, you may file for a Houston Chapter 7 bankruptcy.
However, if your income exceeds this value, additional levels of analysis come into play to determine whether or not your can file under Chapter 7 or must file for bankruptcy under Chapter 13. An experienced personal bankruptcy attorney in Houston can explain these additional analyses in detail.
Exempt assets
Typically, for most consumer Chapter 7 cases in Houston, all of the assets of the debtor fall under different exemptions. This means that no assets are seized and liquidated and no repayments are made to the creditor, but debts are still expunged. This is one reason why the means test was put in place: to ensure that individuals, families, married couples and businesses with the means to repay some level of their debts are not able to simply wipe their debts away with one legal action.
