Erase Debts And Claim A Clean Slate
Every year, millions of Americans find themselves burdened by credit card debt they can never realistically pay back. Chapter 7 bankruptcy, also known as liquidation, offers a path to eliminating unsecured debts. For those who qualify, obtaining Chapter 7 bankruptcy protection paves the way toward new beginnings and a clean slate.
At Norred Law PLLC, we assist clients with both personal and business bankruptcies. Our firm prides itself on offering personalized, one-on-one client service. We do not run a high-volume business. Instead, we emphasize quality over quantity to provide our clients with accessible and responsive service.
Located in Arlington, most of our clients all over the Dallas-Arlington-Fort Worth area, filing cases from Weatherford, Fort Worth, Arlington, Grand Prairie, Dallas and on to Longview and Tyler. We have handled clients all the way down to Houston and up to Grayson County, just shy of Oklahoma.
Southlake Chapter 7 Bankruptcy
For individuals who qualify, Chapter 7 personal bankruptcy can permanently eliminate most types of unsecured debt in just a few months. Usually, these bankruptcies are due to debts such as:
- Credit card debt
- Medical bills
- Utility bills
- Personal loans
- Certain types of business debts.
- Chapter 7 Bankruptcy Qualification and the Means Test
Since 2005, clients must qualify for Chapter 7, or be forced to pay their disposable income to creditors for three to five years. Debtors may qualify for Chapter 7 bankruptcy by any of the three following ways:
1) Having an income less than the average income for their household size.
2) Having the majority of debt be "non-consumer". This can be tricky. A mortgage is considered consumer debt, and can often cause the struggle. Large judgments that come from a lost civil trial will often push individuals into a position where they qualify. This calculation is sometimes difficult to predict and takes some skill.
3) Passing the "Means Test". The Means Test is a calculation that seeks to determine a bankruptcy debtor's disposable income, based on some real-world expenses, such as mortgage and car payments, and IRS allowances that sometimes are less realistic. If a debtor can pass the Means Test by showing he has insufficient funds to pay back any appreciable amount of money to his unsecured creditors by passing the Means Test, he can file a Chapter 7 bankruptcy petition.
Individuals whose income is too high to qualify for Chapter 7 can still obtain debt relief through Chapter 13. Both types of bankruptcy act as a shield against creditors.
We also offer other types of debt relief services, such as fair debt collection practices claims, to assist those who are targets of overzealous creditors.
Chapter 7 For Businesses
Not every business needs to file Chapter 7 bankruptcy upon ending. Nonbankruptcy solutions, such as a simple dissolution, may be more appropriate. However, businesses may benefit from pursuing Chapter 7 to wrap up their affairs in an orderly manner. Businesses do not discharge their debts in bankruptcy as an individual does; the debt just becomes uncollectable.
As Texas business owners for more than 15 years, we are particularly attuned to the concerns small businesses face. We draw on this first-hand experience to help our small-business clients achieve their long-term goals.
We assist small-business clients in determining whether Chapter 7, Chapter 11 or nonbankruptcy solutions will best fit their goals. For those business owners pursuing Chapter 7 bankruptcy, our attorney offers assistance in winding down a dying business so you can move on toward new ventures with a clean start.
Contact Our Chapter 7 Bankruptcy Law Firm
To learn more about whether filing for bankruptcy protection can benefit you or your business, call Norred Law PLLC at 817-704-3984 to speak with an Arlington Chapter 7 bankruptcy lawyer. You can also contact us online. We look forward to assisting you.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.