Why and When You Should opt for chapter 7 bankruptcy San Antonio
You may file the chapter 7 bankruptcy San Antonio when you are unable to repay any of the debts to your creditors. You may seek to be discharged from repayments permanently or temporarily, depending on the report by the trustee. He is the individual who represents your creditors in settling down the repayment issues. However, his approach will be generally impartial since he will conduct an audit to assess and evaluate your repayment capacity.
No-Asset Case Vs Asset Case
You may not have any assets which may be liquidated to repay your debts. Your income could be insufficient for making the repayment in installments also. Your primary and essential expenses could be then your single or multiple sources of income. In such cases, the trustee may recommend to the court for discharging you from all forms of repayments.
Sometimes you may have fixed or moveable assets with you. But you may want to retain them because they are the primary sources for your survival and wellbeing. For example, you may have an apartment, which is the only place for you to live. Or you may have an automobile which is the sole mean of transport. In such cases, the court shall decide the maximum value for every asset to consider liquidation.
Chapter 7 Bankruptcy San Antonio
If the asset value is less than the maximum ceiling limit, you don’t have to sell it for debt repayment. If the value is higher, you may have to sell it for liquidation and debt repayment. Even in such cases, you may get a part of the sales money from the creditors through the court.
Reviews and appraisal by the trustee may give you exemptions from asset liquidation. Then the trustee shall arrange for a meeting with your creditors. Here, he may suggest the various ways in which you can make part or full payment of the debt. Then the trustee approaches the court with your petition and the debt clearance demand by the creditors.
Chapter 13 Bankruptcy San Antonio
You can apply for chapter 13 bankruptcy San Antonio when your present financial position makes it tough to repay according to the agreed terms. For example, you might have taken a mortgage loan on your house. But you have been unable to repay the installments for the past several months. It could be due to insufficient income, loss of a job, or any other bad financial condition.
In such cases, the trustee can recommend gradual repayment of the debts to your creditors. He may recommend the court to decide on a maximum net repayment you can make within a specific period. You have to repay the discounted amount within that period. Then you will be completely free from repaying any of the debts.
Your Bankruptcy San Antonio lawyer can handle all the cases of chapter 7 bankruptcy or chapter 13 bankruptcy San Antonio according to your specific needs. You may also get waivers from the court fee you have to pay according to the regulations.