CHAPTER 7 BANKRUPTCY: The road to Financial stress free life.

Filing for Bankruptcy is a legal proceeding that involves person or business that is incapable of repaying their outstanding debts. The filing for bankruptcy process most commonly begins with a debtor filing a petition; otherwise the petition is filed on behalf of creditors, which is less common.  All the assets the debtor owns are evaluated in order to use the value to repay a certain amount of the unpaid debt.


When you are filing for chapter 7 bankruptcy, the court appointed trustee collects and sells the debtor’s assets which are not protected by an exemption and uses the total earnings of those assets to repay the creditor in accordance with the priorities established in the Bankruptcy Code. A particular section of debtor’s owning may be assigned to liens and mortgages that declare the property to another holder of claims. The Bankruptcy Code also lets debtor keep particular property under “exemption”; but the debtor’s remaining assets will be liquidated by the trustee. In accordance to that, eligible debtors should realize that filing for chapter 7 bankruptcy may cause the debtor to his property.

Foreclosure notice and keys on a court table.


The process to filing for Chapter 7 Bankruptcy in San Antonio:

  • Credit Counseling– When filing for chapter 7 bankruptcy in San Antonio, filers are required to procure credit counseling from an established agency prior to filing. This counseling can easily be done online.
  • Filing the Petition– The next step to be taken is to draft and file the bankruptcy petition and the documents supporting the petition with the court. The filer then, is an assigned a case number.
  • Automatic Stay– The automatic stay begins, as soon as the case is filed as stated Under section 362 of the United States Bankruptcy Code. It is an injunction that stops the creditors to collect debts from debtors who have declared bankruptcy. However, Secured creditors may be eligible to petition the bankruptcy court for relief from the automatic stay, provided they can show a legible cause.
  • Meeting– After filing for chapter 7 bankruptcy in San Antonio, a meeting must be attended by the debtors with the debtor’s trustee in which they will be subjected to answer all the questions about their debts.
  • Creditor Objections– The Creditors are then entitled to a chance to object to the discharge of the debtor’s debt or the elements of the debtor’s repayment plan.
  • Financial Management Course– If the debtor is filing for Chapter 7 in San Antonio, he will have to provide a certificate that ensures that the debtor has completed a onetime financial management course that is required to receive his Discharge Order.  This process includes no test and the debtor can complete the course online at his convenience.
  • Discharge– The debtor is discharged of all eligible debts once the case is completed.



However, before filing for chapter 7 bankruptcy in San Antonio, it is advised to note that particular liabilities, such as child support, certain taxes, alimony, fraudulent debts, student loans, cannot be dismissed in a Chapter 7 bankruptcy. In the most usual Chapter 7 cases, the debtor has a huge credit card debt or other unsecured bills and very few assets, compared to the amount of money owed. Chapter 7 bankruptcy can, in most of the cases, completely eliminate all of the above mentioned debts.


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