Top Chapter 7 Law Firms in Houston

by Emily John Digital Marketing Service Provider

Chapter 7 bankruptcy allows debtors to get rid of most of their debts. Chapter 7 also known as “liquidation” because creditors receive the payment by selling debtors assets and the debtors gets free from all the debts.

Chapter 7 is the simplest form of bankruptcy and it is quick because most applicants receive their discharge within 5 to 6 months of filing the petition.

Not all the property can be sold and this type of property called Exempt property, so a person who files Chapter 7 can keep the exempt property. The exempt property varies from state to state, so it’s better to consult Chapter 7 Law Firms Houston to understand which can be claimed as exempt property in Texas.

Advantages of Chapter 7

· The time to get discharge is 5 to 6 months.

· With in a month you will be free from all the calls and notices from the debtors, so it improves your life in a short term period

· It allows you enough so you can keep most of your properties as exempt property

· You will get new credits within 2 to 3 years of filing the case but the interest rates will be higher

Disadvantages of Chapter 7

· It ruins your credits because it stays on your credit report for 10 years

· You will lose all your luxury goods and credit cards

· If you don’t have a mortgage before filing the Chapter 7 case then it is quite impossible to get a mortgage after filing it

· You can’t file Chapter 7 frequently like Chapter 13. You must have to wait 6 years to file another Chapter 7

· It won’t exempt your student loan

Previously we have discussed quite a lot about and exempt and nonexempt properties, let’s have a look at the list of properties under the respective categories.

Exempt Properties

· Pensions

· Public benefits

· Damages covered for personal injury

· Household Appliances

· Necessary Clothing

· Less expensive jewelries

· Motor Vehicle upto a certain value

Non-exempt Properties

· Expensive Items

· A second home

· Student loan

· Bank Accounts

· Cash

· Investments

If you are in Houston and looking file a Chapter 7 case then it is highly recommended to contact The Houston Bankruptcy Lawyer because it is one of the best Chapter 7 Law Firms in Houston.