Legal Question in Bankruptcy in Texas

Chapter 7 qualifications

I owe 135,000 on unsecured credit cards. I also owe 16k on a boat that is worth 10. I own two cars total 700 payment.

I owe 11k on 401k loan. I make about 80k. My expenses are way above what I can afford now and would like to know if I might qualify for a 7 or would I have to go for a 13.


Asked on 8/01/02, 2:21 pm

2 Answers from Attorneys
Andrew Nichols Law Office of Andrew B. Nichols

Re: Chapter 7 qualifications

Short answer -- File for a complete discharge under Chapter 7.

Your debts are very high but all things are relative. The key is what your monthly income is and how much available income you have after you pay your essential bills (excluding payments to credit cards). I doubt you have very much leftover at the end of each month therefore I estimate you should file for complete relief under Chapter 7. Please read my previous answers to the question of whether or not you "qualify" to file. I believe that most people should attempt to file under Chapter 7 unless there is a good strategic reason for filing under Chapter 13. Please feel free to contact me personally to discuss your particular situation in more detail. ph. (214) 979-7330 or (800) 303-0720

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Answered on 8/01/02, 3:56 pm
Lawrence Maun Lawrence J. Maun, P.C.

Re: Chapter 7 qualifications

Looks like you qualify for either Chap 7 or 13. From your zip code you would be required to file in Houston. Call me with questions. Larry Maun 713.266.2560

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Answered on 8/01/02, 4:04 pm


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