Chapter 7 FAQ

I Can Answer Your Questions About Chapter 7 Bankruptcy

Filing for Chapter 7 bankruptcy is a big step. But once you understand how it works, it may not be so scary.

I am attorney Lindsay D. Steele. I have helped hundreds of people in the Fort Worth area get a fresh financial start through Chapter 7 bankruptcy. In a free consultation, I can address your specific questions and concerns. Call me at 682-990-9372.

What Is Chapter 7 Bankruptcy And Who Is Eligible?

Under Chapter 7 of the U.S. Bankruptcy Code, honest debtors like you can get immediate relief from creditors and a complete discharge of certain debts. Filing for Chapter 7 relief triggers an automatic stay, which means creditors must stop harassing phone calls and all collection actions, including foreclosure.

Chapter 7 is for people who are so far in debt that they can’t repay what they owe. Eligibility is based on a financial means test in which either:

  1. Your income is below the median income in Texas.
  2. You do not have enough disposable income after monthly expenses to pay off debts.

If you aren’t sure, I can help you determine if you qualify for a Chapter 7 discharge. If not, we can explore Chapter 13 bankruptcy.

When Should I Consider Filing For Chapter 7 Bankruptcy?

Most people struggle with debt for a long time, hoping to catch up but falling farther and farther behind. Filing for bankruptcy may be appropriate when creditors start taking legal actions like foreclosure, liens, wage garnishment, and harassing your family members and employer. Talk to a lawyer before it’s too late.

What Types Of Debt Can I Discharge With Chapter 7?

Chapter 7 bankruptcy eliminates unsecured debts such as medical bills, credit card balances, utility bills, personal loans, past due rent and civil judgments. Certain income taxes that are more than 3 years old may qualify. Once discharged by the Bankruptcy Court, creditors can never come after you for those debts.

Chapter 7 bankruptcy does not discharge secured debts such as mortgage arrears or car loans. You also cannot discharge student loans, recent taxes, child support or alimony obligations, or court-ordered fines or restitution.

Will I Lose My Property If I File For Chapter 7 Relief?

You may have to forfeit some assets, which the bankruptcy trustee will sell to partially repay your creditors. However, under the Texas bankruptcy exemptions, most of my clients do not lose any property. You can exempt all retirement savings, your vehicles (one vehicle per licensed member of the household), your equity in your home, plus up to $50,000 in personal property ($100,000 for a married couple).

Can I Keep My Home?

Most (but not all) people are able to keep their homes in Chapter 7. Texas has an unlimited homestead exemption, so all equity in your home is exempt. You must be current on mortgage payments. Filing for bankruptcy stops the foreclosure process, but if you fall behind after a Chapter 7 discharge, the lender can resume foreclosure. I can help you decide if it is financially feasible to keep your house or surrender it.

How Will Chapter 7 Bankruptcy Impact My Credit?

Your credit is already bad if you are maxed out on credit cards and paying bills late. There is a short-term hit to your credit when you file bankruptcy, and it does stay on your record for 10 years. However, most people are able to qualify for loans and credit cards within a year two. By living within your means and paying debts on time, you can re-establish a good credit score.

No Doubt You Have More Questions

Bankruptcy is fact-specific. You may be concerned about specific debts or exemptions, or the timing of your Chapter 7 petition. Please arrange a free initial consultation by calling Steele Law Firm, PLLC, or contact me online.

Steele Law Firm is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

We Can Help

contact us today

WE'RE HERE FOR YOU

Schedule a Free Initial Consultation
(682)231-0909
3629 Lovell Ave, Ste. 100
Fort Worth, TX
Directions
Disclaimer(Required)
This field is for validation purposes and should be left unchanged.
  • How to Choose the Best Saginaw Bankruptcy Attorney

    The decision to file for bankruptcy is a significant and impactful decision in its own right. When it comes to partnering with a skilled […]
    read more

    What to Prepare When Meeting With a Plano Bankruptcy Lawyer

    Filing for bankruptcy can be a complicated and draining legal process. However, with the right preparation and an experienced and skilled attorney, it could […]
    read more

    How to Find the Best Bankruptcy Attorney in Irving, TX

    When you are in a position where you must consider bankruptcy, you are already feeling the strain related to uncontrollable and unmanageable debt. This […]
    read more
  • What to Expect When Working With a Denton, TX, Bankruptcy Attorney

    It is never easy to admit that you are struggling financially due to excessive debt and unpayable bills. Fortunately, there is a legal route […]
    read more

    Top 3 Signs It's Time to Hire a Dallas Bankruptcy Attorney

    Financial strains are among the most stressful issues to handle, and when debts and obligations become out of your control, the stress can become […]
    read more

    Navigating the Dallas Bankruptcy Court System

    Considering filing for bankruptcy can be an emotionally stressful decision as it usually follows already strenuous financial issues. What’s more, the actual process for […]
    read more
  • How Do You Qualify for Chapter 13 in Texas?

    A Chapter 13 bankruptcy can be a helpful strategy for someone to get their debt situation under control, manage payments, and begin the path […]
    read more

    What Are the Downsides to Filing Chapter 13 in Texas?

    There’s never a perfect solution for difficult financial situations. When you need to take substantial steps to deal with financial difficulty, you want to […]
    read more

    What Will I Lose If I File for Chapter 13 Bankruptcy in Texas

    When tackling overwhelming debt, filing for Chapter 13 bankruptcy in Texas may seem like a viable solution. It can provide much-needed relief from financial […]
    read more