Chapter 7 bankruptcy proceedings, popularly known as liquidation proceedings, are often the hardest financial decision a Texas resident could make. Filing for bankruptcy under liquidation proceeding often leads to losing some of the most important financial assets for the debtor. It can also be a major blow to one's self confidence and self-esteem.
Due to the recent economic problems and the slow rate of economic recovery, people from all over the country, and even here in Texas, may find it difficult to reorganize their finances and get their lives back on track. Financial pressure may culminate in different kinds of debt like rent, unpaid credit card bills and loan repayments. In order to give people a second chance at recovery, avoid creditor harassment and protect their assets, Chapter 7 bankruptcy can be a viable solution.
There are many reasons why Texas residents may encounter hard times financially. Medical bills, the costs associated with the loss of a loved one, credit card debt, and many other causes can bring financial ruin to individuals and families. Those who may have found themselves buried in debt may want to consider filing for bankruptcy. Chapter 7 of the bankruptcy code has certain unique advantages, and when a debtor has qualified for Chapter 7 through a means test, several doors may open up, which can help an individual with the heavy burden of debt.
Not many Texans are free of debt. In fact, not many students graduate debt free, and those who do are considered lucky. For example, consider the situation of a woman who earned her degree in 2003 without incurring any debt. She got married, bought a house and a car and everything seemed to be going well. However, she then lost her job in 2008.