Pelley Law Office LLP
Dallas Office
Plano Office
Sherman Office
214-733-1775
972-608-0335
903-813-4778

No Charge For Initial Consultation ($250 value)

Menu Contact

Over 80 Years Of Combined Experience

View Our Practice Areas

Discharge and reaffirmation in Chapter 7 bankruptcy filings

Texas residents who are in debt might benefit from learning about the different benefits of filing Chapter 7 bankruptcy. This option is often referred to as the liquidation chapter of the U.S. Bankruptcy Code. Chapter 7 bankruptcy allows debtors to discharge the debts listed on their bankruptcy schedule. However, when a person files, a court appointed trustee is tasked with collecting and selling all non-exempt property belonging to the debtor.

A discharge can be described as a court order that relieves a consumer from the obligation to repay many of his or her debts. The debt that is not discharged by entering Chapter 7 bankruptcy includes child support, taxes, alimony, restitution or fines issued through courts and student loans. Expenses incurred by driving intoxicated or committing fraud are also disqualified from being discharged through a bankruptcy action. In addition, bankruptcy records may stay on the credit report for up to 10 years and could affect consumers' ability to secure future loans.

When filing bankruptcy, creditors may request that debtors reaffirm, or repay, certain debts that could otherwise be discharged. Some debtors enter this legally enforceable agreement of repayment based on their own motives. Debtors and creditors typically need to submit reaffirmation documents within 60 days of their initial meeting, and entering into these agreements is voluntary for debtors. If the debtor fails to uphold a reaffirmation agreement, a creditor may take legal action to recover the debt. However, reaffirmation agreements cannot be designed in such a way that creates an undue-burden on the debtor or any dependents.

Debtors who need help evaluating bankruptcy law typically benefit from consulting legal representation. Bankruptcy lawyers may be able to help debtors choose the most advantageous option for their particular situation. These lawyers might also be effective in protecting debtors from creditor harassment and wage garnishment as well.

Source: Southern District of Texas, "Forms, Fees & Rules", September 19, 2014

No Comments

Leave a comment
Comment Information

Awards & Recognition

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Locations

Plano office
Sherman office
Dallas office

Plano Office
1312 14th Street, Suite 100
Plano, Texas 75074

Phone: 972-608-0335
Map & Directions

Sherman Office
905 North Travis Street
Sherman, Texas 75090

Phone: 903-813-4778
Map & Directions

Dallas Office
6060 North Central Expressway, Suite 602
Dallas, Texas 75206

Phone: 214-733-1775
Map & Directions