Changes in the bankruptcy laws have left many to erroneously think that they can no longer declare bankruptcy. The Malaise Law Firm successfully helps the people of San Antonio, Houston, Brownsville, Corpus Christi, McAllen, and Laredo with their bankruptcy needs.

A chapter 7 bankruptcy can also be referred to as liquidation; although with most cases there is little if any liquidation involved. Chapter 7 is referred to as liquidation because all of your non-exempt assets are converted to cash to help pay back the debt owed. It is best to speak with a skilled Texas bankruptcy lawyer if you are unsure whether chapter 7 is the best option for you.

In general, chapter 7 best suits persons:

• with income at or below the state median level
• unable to adequately meet bills and living expenses each month
• having little or no assets besides clothing and furniture
• not declaring child support or alimony
• without fines imposed for violating the law
• without income tax debt
• without student loans to repay

Under Chapter 7 an individual or business can ask the courts to erase the debts owed creating a fresh start. As soon as you file for bankruptcy you are immediately granted a “stay” preventing creditors from contacting you to collect, garnishing your wages, taking your home, vehicles or other property, and/or shutting off your utilities.

In order to decide whether Chapter 7 is really necessary for you as a debtor, you will need to take a “Chapter 7 Means Test.” This test simply compares your income to the median income in your geographic area for your family size. This ensures you as a debtor are not trying to abuse the system. The majority of debtors will pass the means test. Contact a Texas bankruptcy lawyer right away to discuss your particular situation. The Malaise Law Firm is experienced in all aspects of bankruptcy law. Our knowledgeable lawyers will competently and thoroughly advise you of all your options under bankruptcy law. Contact The Malaise Law Firm right away if you are in financial difficulty and are considering bankruptcy. You can email our office using the convenient and confidential form on this page or call our office at 1-800-226-5787.