Bankruptcy can be very useful for a person who finds himself in severe financial distress with considerable debts he is unable to repay. Chapter 7 is often referred to as a “total liquidation” bankruptcy, although, in fact, not all debts are always dismissed through a Chapter 7. If you believe that bankruptcy is right for you, it is important that you work with a Bryan bankruptcy attorney who can represent your interests and guide you through the complexities of the process.
How Often You Can File
There are restrictions on how often you can file either a Chapter 13 or Chapter 7 bankruptcy. In general, you cannot file for Chapter 7 protection more often than once every eight years. The purpose of this restriction is to prevent serial debtors from taking advantage of a system meant for those who find themselves in an exceptional financial difficulty. In other words, you are expected to be fiscally responsible in life, and bankruptcy is not intended as a way to facilitate a lifestyle that is beyond your means.
There is an exception to the eight year rule, however. You may file for a Chapter 13 bankruptcy five years after a Chapter 7. Chapter 13 is considered a debt reorganization bankruptcy, and as such, you must pay a portion of the debt under consideration. After your Chapter 13 is approved, you can then request the bankruptcy judge to convert it to a Chapter 7. He or she may do so at their discretion.
Debts Excluded from Chapter 7 Bankruptcies
Most unsecured debts and unpaid medical bills can be discharged with a Chapter 7. However, there are certain debts that cannot be eliminated. These include:
- Federal student loans
- Unpaid child and spousal support
- Government fines such as traffic tickets
- Debts ordered by a divorce decree to be paid to the other spouse
For Further Information about Filing Chapter 7 Bankruptcy
If you feel that it is necessary to file for bankruptcy protection, it is very important that you work with a Bryan bankruptcy lawyer who can take you through the process and help you avoid costly mistakes. Call Peterson Law Group today at 979-703-7014.