Awards & Media Appearances
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy, also known as “liquidation” bankruptcy, is the most common form for individuals. It allows you to eliminate most of your unsecured debts, such as credit card bills, medical bills, and personal loans. Chapter 7 offers a fresh financial start, but there are key points to understand before proceeding. In this process, a trustee reviews your assets to determine if they can be sold to pay creditors. Thankfully, Texas bankruptcy law offers exemptions for property like your home, car, and retirement accounts, as long as their value does not exceed set limits. For many Texans, this means they can keep most or all of their assets while wiping out unsecured debt. Typically, the Chapter 7 process takes three to six months, and after that, your unsecured debts are discharged. What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy, or “reorganization” bankruptcy, works differently from Chapter 7. Instead of eliminating debts, Chapter 13 allows you to create a repayment plan to pay back part of your debts over a three-to-five-year period. This option is ideal for those with a steady income who are struggling with mortgage or car payments but want to keep their property. One of the main advantages of Chapter 13 is that it can help you avoid foreclosure on your home or repossession of your car. If you’re behind on payments, Chapter 13 allows you to catch up over time while protecting your assets. This option is also beneficial for individuals with higher incomes or those who have valuable assets they want to protect—assets that may not be exempt under Chapter 7.The Zendeh Del & Associates, PLLC Team
Which Type of Bankruptcy Is Right for You?
Choosing between Chapter 7 and Chapter 13 bankruptcy depends on several factors: your income, debt level, and assets. If you are struggling with unsecured debt, like credit cards or medical bills, and don’t have significant assets to protect, Chapter 7 may be the best choice for you. Chapter 7 will allow you to eliminate your debts quickly and start over with a fresh start. If you have a steady income and are behind on secured debts, like your mortgage or car payments, Chapter 13 may be a better fit. Chapter 13 can help you keep your home and car while paying off your debts over time. Additionally, if you’re not eligible for Chapter 7 because of income limitations or if you have assets you want to protect, Chapter 13 offers a way to reorganize your debt and work toward paying it off.Important Considerations Before Filing for Bankruptcy in Texas
Before you decide, there are several factors to think about. Eligibility for Chapter 7 is determined by income limits, meaning you must pass a means test to qualify. If your income is too high, you may need to file Chapter 13. If you own valuable property like a second home or vacation property, Chapter 13 may allow you to protect it. On the other hand, Chapter 7 may require you to sell non-exempt property to pay off creditors. If your primary debt is secured debt, such as mortgages or car loans, Chapter 13 may be the better option. Chapter 7 focuses on eliminating unsecured debt, such as credit card debt and medical bills. If you are behind on your mortgage or car payments and want to avoid foreclosure or repossession, Chapter 13 may help you catch up on payments over time while still protecting your property.Client
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These guys are amazing. They made a most horrific experience bearable. They treated me with respect and no judgment. I cannot describe how grateful I am for their representation with my case. 5 stars is not enough. I hope I never need them again but would ABSOLUTELY use them again and definitely recommend them.
— Jennifer S.
Jonathan Zendeh Del and Associates worked tirelessly on my case. They kept me informed every step of the way. In the end the got my case dismissed and I am so grateful that we out our trust in his law firm. I can honestly say the rumors were true. He really is the best.