Chapter 7 Bankruptcy Q&A
Often filing for a Chapter 7 bankruptcy is seen as the final step in a personal financial crisis. While this thought is understandable, it’s more realistic to view a Chapter 7 bankruptcy as the beginning of financial freedom.
Benefits of a Chapter 7 bankruptcy
Briefly, filing for Chapter 7 bankruptcy will place an automatic stay that will help protect you against:
• Liens on your paycheck or bank account
• Foreclosure of your home
• Repossession of your vehicle
The filing fees for a Chapter 7 bankruptcy
The fee to file a Chapter 7 bankruptcy in Texas is approximately $299. For more information go to: www.txnb.uscourts.gov/Clerks-Office/Filing-Fees.
Attorney fees involved in a Chapter 7 bankruptcy
When considering the fees associated with attorney fees, the big picture must be taken into account. Mistakes on a Chapter 7 bankruptcy application can end up costing you money in the long run. Furthermore, representation by a skilled bankruptcy attorney can help you deal with unethical action from overzealous creditors who may harass you or refuse to remove liens on your paycheck or other assets.
Many bankruptcy attorneys are willing to work out a reasonable payment plan so you can file for a Chapter 7 bankruptcy as soon as possible to avoid a lien on your paycheck or repossession of your vehicle.