Falling behind on credit cards, medical bills, or a car note does not always mean losing the house, the paycheck, or everything a person owns. For people looking into Waxahachie bankruptcy law, Texas protects a wide range of property from creditors, and Chapter 7 bankruptcy can stop collection calls and offer a way to start over.
At Steele Law Firm in Fort Worth, Lindsay D. Steele works as a Chapter 7 bankruptcy lawyer for clients in Waxahachie and Ellis County. The attorney has been licensed in Texas since 2009 and represents clients in the U.S. Bankruptcy Court for the Northern District of Texas. The firm's practice is focused on bankruptcy, so its attention is not spread across many other kinds of law.
Clients work with Ms. Steele directly from the first call through the discharge rather than a rotating case manager. You can contact the office to talk through your debts and what Chapter 7 could mean for your property and your future.
Chapter 7 is the bankruptcy chapter that can discharge unsecured debt in one case, rather than through payments stretched over years. Many of the debts people bring to a Chapter 7 lawyer fall into a few familiar categories:
Not every debt disappears in a Chapter 7 case, and secured debts like a mortgage or car loan work differently than unsecured debt does. Sorting out which category your specific bills fall into is usually the first step toward deciding whether Chapter 7 fits your situation.
Filing a Chapter 7 petition triggers what the law calls the automatic stay. Under Title 11 of the U.S. Code, Section 362, most creditors must stop calling, stop a pending lawsuit, and pause wage garnishment or a scheduled repossession while the case moves forward. The stay is not permanent for every creditor, since a secured lender can ask the court to lift it.
Still, it generally buys the breathing room most filers need right away. Before the case can proceed, the law also requires a means test. The test compares average income over the past 6 months to the Texas median for a household of the same size.
Filers at or below the median typically qualify for Chapter 7 outright, and many who earn more still qualify once allowed expenses are factored in. Residents of Waxahachie and the rest of Ellis County file their cases with the Dallas Division of the Northern District of Texas. That court handles bankruptcy matters at the Earle Cabell Federal Building in downtown Dallas.
In the Northern District of Texas, the required meeting with the trustee is now generally held by video or phone rather than in person.
Texas exemption law decides what a Chapter 7 trustee can take and what a filer keeps. Under Texas Property Code Section 41.001, a homestead is generally exempt from most creditor claims, whatever its value.
The exemption applies as long as the property sits on no more than 10 acres inside a city, or up to 100 acres for a single adult and 200 for a family outside one. A separate Texas law protects a set amount of personal property, including furniture, clothing, tools used for work, and one vehicle per licensed household member.
Most retirement accounts carry their own separate protection. Getting the exemption paperwork right matters, since a mistake on the schedules can expose property that should have stayed protected.
Lindsay D. Steele’s experience in consumer bankruptcy can help explain which property is protected and how to claim it.
Most Chapter 7 cases move from filing to discharge in about 4 months, assuming no unusual complications come up. The process includes a short meeting with the trustee, a waiting period for creditors to object, and the final discharge order from the court.
Chapter 7 does not erase every debt. Most tax debt, child support and alimony, student loans in most cases, and debts tied to certain court judgments, such as fraud, generally survive the case. An attorney can look at your specific debts and explain which ones a filing may chapter 7 bankruptcy discharge.
It can. Bankruptcy law generally requires living in a state for about 2 years before you can use that state's exemptions, including the Texas homestead exemption. If you moved to Waxahachie more recently, the exemptions from your previous state may apply instead, which is worth discussing before you file.
In most cases, no. Tax-exempt retirement accounts such as 401(k)s, 403(b)s, and most IRAs are protected under a separate federal exemption regardless of Texas's other property limits. Very large IRA balances can face a federal cap that is adjusted periodically.
Yes. Lindsay D. Steele is admitted to practice in the U.S. District Courts for the Northern, Eastern, and Southern Districts of Texas. She is also licensed in Texas state courts.
The federal court filing fee for a Chapter 7 case is $338, and that fee is the same in every state. Attorney fees are separate and vary based on the complexity of your case, which is something to discuss before you decide to file.
If you still have questions about how Chapter 7 might work for your situation, contact our office to set up a time to talk it through.
Collection calls, a pending lawsuit, or the fear of a repossession can take over daily life. A lawyer at Steele Law Firm can go over your income, debts, and property with you and explain whether Chapter 7 may be a good fit.
Contact us today to schedule a time to talk about your options.
