Are you struggling to pay your bills each month and finding yourself falling farther and farther behind in your financial obligations? Is all of your money going to just make the minimum payments on your credit card debt?

Failing to take care of these problems can lead to losing your home, car and personal property. We can help you stop the bleeding and save yourself.  To arrange for your free 30-minute consultation, please contact the office of Lynn Carroll by telephone at 214-749-7777.  We practice bankruptcy in Dallas County, Texas. 

When you file a Chapter 7 bankruptcy petition, you will be taking steps that allow you to move past financial turmoil and obtain the opportunity for a fresh start. A Chapter 7 filing relieves you from having to pay for dischargeable debts, such as credit card balances, bank loans, court judgments and medical bills. However, there are certain nondischargeable debts that still must be paid.

The following are types of obligations that are not discharged from the filing of a chapter 7 bankruptcy:

• Customs duties
• Spousal support
• Child support
• Most student loans less than 10 years old
• Secured debts
• Fines and penalties imposed by government agencies
• Debts incurred due to false statements made with the intent to deceive
• Fraud committed in a fiduciary capacity, such as embezzlement or larceny
• Punitive damage claims for “willful and malicious” acts
• Debts not listed on the forms filed with the Court
• Drunk driving obligations
• Federal, state and local tax claims with certain exceptions.

Filing a Chapter 7 bankruptcy petition will typically result in a liquidation of your nonexempt assets. The bankruptcy trustee will evaluate and sell off your nonexempt assets, with the proceeds of the sale being used to pay off creditors. You will be able to retain all property categorized as exempt.

Examples of property classified as exempt by the bankruptcy laws include:

• Cash, U.S. savings bonds and tax refunds up to $2,500
• Household furniture
• All wearing apparel
• Certain appliances and household goods
• Equity in a motor vehicle up to $2,400 ($4,800 for spouses filing jointly)
• Equity in a house, condo or co-op up to $50,000 ($100,000 for spouses filing jointly)
• Most pensions and retirement plans

Recent changes in the bankruptcy laws require individuals who earn over the median income in their geographical location to go through a “means test” to see whether they qualify for Chapter 7 bankruptcy. The test is a two-step income and expense analysis that can be somewhat complicated to calculate.  If you have more income than the test allows, or if the Court finds that you are abusing the system based on the totality of the circumstances of your financial situation or because you filed a petition in “bad faith”, then your case will be DISMISSED, unless you agree to pay back a portion of your debts under a Chapter 13 reorganization plan.

There are two objective tests applied to income and expense to determine if your can file Chapter 7.

Median Income Test – The First test is to see if your Current Monthly Income is MORE than the State Median Income. “Median” income means that there are an equal number of people in your state with incomes that are higher and an equal number that are lower than the median income. Basically this test looks to see if your family is better off than half of all the other families around you (keep in mind your case may be ordered to be dismissed or converted even if your income is LESS than the state median income and there is NO presumption of abuse).

Means Test – The Second test checks to see if your Current Monthly Income reduced by allowed expenses exceeds an amount allowed for a family of the same size. The Means Test is essentially an excess income test that determines if what is left over out of your monthly income after deducting reasonable expenses leaves enough money to be able to give a meaningful dividend to your unsecured creditors.

If your Current Monthly Income is LESS than the State Median Income, NO dismissal can be filed based on a presumption of abuse.

We will assist you in determining your eligibility for filing a Chapter 7 bankruptcy and, in the event you are not eligible, will help you evaluate other alternatives such as a Chapter 13 bankruptcy.

Once you hire our office to represent you, we will begin working on your case immediately and will represent you through the entire Chapter 7 bankruptcy process. We inform creditors that you are represented by an attorney, and that they are required to cease all harassing phone calls and attempts to collect on outstanding debt. Bankruptcy may also stop home foreclosure actions and the repossession of property.

Contact Lynn Carroll  at 214-749-7777 to arrange for your free 30-minute initial consultation.

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