Overview
A clean financial reset, made deliberately.
Chapter 7 is the most direct path out from under overwhelming unsecured debt. For qualifying individuals and families it eliminates obligations such as credit cards, medical bills, personal loans, and most older tax debt. In return, a court-appointed trustee reviews your assets to determine whether any non-exempt property can be sold to partially repay creditors. For most of the firm's Chapter 7 clients, no non-exempt property exists, and the case becomes a straightforward route to discharge.
Who qualifies
Eligibility turns on what is known as the means test. The test compares your average household income over the prior six months against the median income for a Texas household of your size. Where income falls below the median, qualification is generally automatic. Where income exceeds the median, a more detailed calculation of allowed expenses determines whether Chapter 7 is available. The firm performs this analysis at the consultation stage so you know early whether Chapter 7 fits or whether another chapter would serve you better.
What can and cannot be discharged
- Discharged: credit card debt, medical bills, personal loans, deficiency balances on repossessed vehicles, most older income tax obligations.
- Generally not discharged: most student loans, recent income tax debt, child support and alimony, debts incurred through fraud, and criminal restitution.
- Secured debts such as mortgages and car loans can be reaffirmed and kept, surrendered, or in some cases redeemed.
The process, step by step
After the initial consultation, the firm prepares a complete petition documenting income, expenses, assets, debts, and recent financial transactions. Filing the petition immediately triggers the automatic stay, which stops creditor calls, wage garnishments, and most collection lawsuits. Roughly thirty days later, you attend a brief meeting of creditors with your attorney. In a typical case, discharge is entered approximately sixty to ninety days after that meeting.
Why board-certified counsel matters here
Chapter 7 is procedurally direct, but the planning that happens before filing is where outcomes are won or lost. Asset exemption choices, the timing of the petition, prepetition transfers, and the means test calculation all carry consequences that cannot be undone after filing. Board certification reflects exactly the kind of preparation experience that prevents avoidable surprises in the months that follow.
