What is Chapter 7 bankruptcy?
Chapter 7 bankruptcy is a federal legal process that allows individuals to discharge most unsecured debts, including:
- Credit card debt
- Medical bills
- Personal loans
- Collection accounts
- Certain old tax debts
- Lawsuit judgments
Once filed, an automatic stay immediately stops most collection activity — calls, lawsuits, wage garnishments, bank levies, and collection letters.
Benefits of Chapter 7
Eliminate Credit Card Debt
Discharge thousands — or tens of thousands — of dollars in unsecured debt.
Stop Lawsuits & Collections
The automatic stay halts most creditor actions, including debt lawsuits.
Quick Resolution
Unlike Chapter 13, Chapter 7 typically concludes in just a few months.
Texas Homestead Protection
One of the strongest in the country — most homeowners keep their home.
Keep Your Vehicles
Texas exemptions often protect vehicles and personal property.
Retirement Accounts Protected
401(k)s and IRAs are fully protected in bankruptcy.
The Chapter 7 process
Free Case Evaluation
We review your income, assets, and debts to determine whether Chapter 7 is appropriate.
Credit Counseling Course
Federal law requires a short online credit counseling course before filing.
Preparing the Petition
Our team prepares all documents — income disclosures, asset schedules, creditor lists, means test.
Automatic Stay Protection
Immediately after filing, federal law stops most collection activity against you.
Meeting of Creditors
About 30 days after filing, you attend a brief meeting with the bankruptcy trustee.
Debt Discharge
If no objections, the court issues a discharge order eliminating eligible debts.
Most clients receive their discharge within 60–90 days after the meeting of creditors.
Will I lose my property?
In many Chapter 7 cases, you keep most or all of your property thanks to Texas's strong exemptions, which protect:
- · Primary residence (homestead)
- · Personal property
- · Vehicles
- · Retirement accounts
- · Household goods & furniture
Is Chapter 7 right for you?
Chapter 7 may be a good option if:
- You have significant credit card or medical debt
- You are being sued by creditors
- You are behind on payments and cannot catch up
- Your income is below or near the Texas median income level
- You do not have significant non-exempt assets
Even if your income is above the median, you may still qualify depending on your expenses and debts.