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Consumer Bankruptcy-Chapter 7 & 13

What is Chapter 7 Bankruptcy and how can it help you?

Chapter 7 is the part of the Federal bankruptcy law designed for people in financial difficulties who do not have the ability to repay their existing debts, such as credit cards and payday loans. Chapter 7 is the most common form of bankruptcy in the United States. In a Chapter 7 case, the bankruptcy court appoints a trustee to examine your assets to determine if you have any exempt property, such as real estate mortgages and car loans, for example. Exemptions are laws that allow you to keep certain types and amounts of money and property. Exemption laws allow you to protect a certain amount of equity in your residence, motor vehicle, household goods, health aids, life insurance, and retirement plans, as well as future earnings such as social security benefits, child support, and alimony, along with certain other types of personal property. Any non-exempt property will be liquidated by the trustee, who distributes the proceeds among unsecured creditors. Although a liquidation case can rarely help you with secured debt (the secured creditor still has the right to repossess the collateral if you fall behind with your monthly payments), you are discharged from the legal obligation to pay unsecured debts such as credit card debts, medical bills, and utility arrearages. However, certain types of unsecured debt are allowed special treatment and cannot be discharged, including some student loans, alimony, child support, criminal fines, and some taxes.

A Chapter 7 bankruptcy stays on your credit report for 10 years from the date of filing.

What is Chapter 13 Bankruptcy and how can it help you?

Chapter 13 bankruptcy is for persons who don't qualify for a Chapter 7 due to income or persons who are facing a foreclosure or repossession. The arrearages that they owe on their debt are put into a payment plan over a 3 to 5 year period and the debtor (s) make payments during this time to get caught up on their debts.  Chapter 13 bankruptcy,  stays on your credit report for 7 years from the date of filing. A bankruptcy might make credit less available and/or terms less favorable, although having too much debt can also have the same effect.

Law Firm

Fugate Law Firm Can Help You in Chapter 7 Bankruptcy

Fugate Law Firm's bankruptcy attorney has helped many clients since 2002 with their Chapter 7 filings.  We can help you learn whether you qualify for a Chapter 7 bankruptcy—or whether bankruptcy is the right answer for you. We will help you ensure all requirements are fulfilled so the bankruptcy goes smoothly and your assets are safe.

For a free consultation with one of our chapter 7 bankruptcy attorneys and an evaluation of your situation, call us today at 281-859-9200

Representation for Bankruptcy includes clients located in the following counties only; Austin, Brazos, Colorado, Fayette, Fort Bend, Grimes, Harris, Madison, Montgomery, San Jacinto, Walker, Waller, and Wharton.


Chapter 7 Consumer Bankruptcy Worksheet

Chapter 7 Consumer-341 Meeting Questionnaire

Chapter 7 Consumer-Debtor's Certification and Motion for Entry of Discharge

Art Gallery


Chapter 7 Business Bankruptcy Worksheet

Chapter 7 Business-341 Meeting Questionnaire

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