Arlington Chapter 7 Bankruptcy Lawyer

Life in Arlington, Texas, can be very enjoyable; the city is home to the Dallas Cowboys stadium and two Six Flags amusement parks. But life here isn’t all entertainment, and people sometimes become overwhelmed by debt. Steele Law Firm, PLLC, can help with the creditor calls and threats of losing a home or car. Our Arlington Chapter 7 bankruptcy lawyers have years of experience guiding clients through the bankruptcy process.

We can help eliminate unsecured debt and protect essential property, giving people peace of mind for the future.

Chapter 7 bankruptcy allows individuals and certain businesses to eliminate most unsecured debts. In exchange, the bankruptcy trustee may sell non-exempt assets to repay creditors. However, those pursuing Chapter 7 are usually able to keep most personal property.

In 2024, over 517,000 bankruptcy cases were filed. Filing under Chapter 7 provides a way to reset your finances, stop collection efforts, and get a clean slate going forward.

Texas has its own exemption rules for Chapter 7 bankruptcy. The state is known for having some of the more lenient bankruptcy laws in the country, which allow you to retain essentials while eliminating unsecured debt. 

Some key exemptions under Texas law for bankruptcy include:

• Homestead exemption. You can protect your primary residence no matter the value, as long as it doesn’t exceed 10 acres in an urban area or 100 acres in a rural area. 
• Motor vehicle exemption. You can exempt one vehicle per licensed household member. 
• Personal property. Individuals have up to $50,000 in household goods protected, and families have up to $100,000. 
• Retirement accounts. Most retirement plans, such as IRAs, are fully protected. 

A skilled Arlington Chapter 7 bankruptcy attorney from Steele Law Firm, PLLC, can analyze your financial situation and identify eligible exemptions to protect your finances.

It can be difficult to know if bankruptcy is the right choice for you. However, continuing to struggle with unmanageable debt can make your situation worse. 

It may be time to hire a Chapter 7 bankruptcy lawyer if any of the following apply to you:

• You’re using credit cards to pay for basic living expenses.
• Your wages have been garnished.
• You’re facing foreclosure, repossession, or eviction. 
• You’ve been sued for unpaid debts.
• You’re overwhelmed by medical or credit card bills.
• You can’t catch up on minimum payments despite budgeting.

Steele Law Firm, PLLC, can review your income, expenses, and total debt to help you determine if Chapter 7 is the right move for your finances. We can also discuss if Chapter 13 is a better alternative for your needs.

The Arlington Chapter 7 bankruptcy lawyers of Steele Law Firm, PLLC, can provide clarity on the bankruptcy process. Here are some of the steps you’ll likely go through when filing for Chapter 7 bankruptcy in Texas. 

• Initial consultation and evaluation. We review your financial information, debts, and income to determine your eligibility for Chapter 7. 
• Prepare and file your petition. If you qualify and decide to proceed, we can prepare the necessary petition, schedules, and financial disclosures. These are filed with the US Bankruptcy Court for the Northern District of Texas.
• Automatic stay protection. As soon as your case is filed, an automatic stay stops creditor calls, wage garnishment, repossession, and lawsuits. 
• Meeting of creditors. You must attend a brief meeting with the bankruptcy trustee and possibly other creditors. We stay by your side to advocate for your needs and situation.
• Trustee review and asset evaluation. The trustee reviews your assets and exemptions. 
• Debt discharge. When everything is settled, your eligible debts are officially discharged.

In a Chapter 7 bankruptcy case, most secure debts can be discharged, including:

• Credit card balances
• Utility bills
• Personal loans
• Medical expenses
• Collection accounts
• Old rent balances
• Some old tax debts, if conditions are met

There are also debts that aren’t dischargeable. These include:

• Student loans
• Child support and alimony
• Certain tax obligations
• Fines and restitution from criminal cases
• Debts incurred through fraud

Steele Law Firm, PLLC, holds a reputation for providing client-centered bankruptcy representation. We have extensive experience guiding clients through each phase of the process with confidence. Our goal is to support your long-term financial goals and give you peace of mind and clarity as you navigate this phase of life.

Q: How Much Does a Lawyer Charge for Chapter 7 in Texas?

A: The cost of hiring a lawyer for Chapter 7 in Texas varies based on the complexity of the case, the location, and the amount of experience the lawyer has. Fees usually cover paperwork filing, court representation, and creditor communications. There is also a court filing fee that is paid directly to the court, which would be the Bankruptcy Court of the Northern District of Texas. 

Q: What Is the Income Limit for Chapter 7 Bankruptcy in Texas?

A: There is no specific income limit for Chapter 7 bankruptcy in Texas. Rather, it’s based on the state median income. For one earner, that number is $63,448, and for two, it’s $83,037. The number increases with each additional member of the family. Your income over the past six months is considered for this. If you make more than the median income, you may still qualify by showing limited disposable income after necessities are taken care of.

Q: What Disqualifies You From Chapter 7 Bankruptcy?

A: Factors that can disqualify you from Chapter 7 bankruptcy include committing bankruptcy fraud, receiving a Chapter 7 discharge within recent years, and failing the means test. Additionally, failing to complete credit counseling before filing or ignoring court orders can result in dismissal. The courts may also redirect you to Chapter 13 bankruptcy if your assets can repay your debts.

Q: Does Chapter 7 Wipe Out All Debt?

A: Chapter 7 can eliminate most unsecured debts, including credit cards, personal loans, and medical bills. However, not all debts are dischargeable. Non-dischargeable debts include student loans, child support, alimony, recent taxes, and court fines. You may also maintain a home and car loan if you intend to keep them after filing for bankruptcy. 

Contact Steele Law Firm, PLLC, today to schedule a consultation with one of our skilled Arlington Chapter 7 bankruptcy lawyers.