Are You Thinking About Filing For Chapter 7 Bankruptcy in Texas?

J Thomas Black
Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization

Coming to the realization that you may need to file for Chapter 7 bankruptcy can make some people feel very embarrassed and alone. However, there is no need to be embarrassed…and you are certainly not alone. Hundreds of thousands of people file for bankruptcy in the U.S. every year.

Why do people file for Chapter 7?

  • They have accumulated a large amount of debt that they are unable to repay.
  • They want to stop the harassing calls from debt collectors at all hours of the day and night.
  • They do not have a job or their paychecks do not come regularly.
  • An unexpected emergency has resulted in a mountain of medical bills that they just can't afford.

All is Forgiven?

Filing for Chapter 7 does not mean that all of your debts are automatically forgiven and you are free to start anew. Yes, many debts are "dischargeable," or forgiven—personal loans, credit card balances, leases—but some are non-dischargeable. Those include:

  • Student loans unless undue hardship
  • Child support and alimony
  • Recent taxes and tax liens
  • Debts obtained through fraud

It is best that you speak with a qualified Texas bankruptcy attorney to determine which parts of your debt will be discharged and which parts you will still be responsible for repaying. Understanding where your debts fall under each category will help you make a more informed decision when it comes to deciding if you should file for Chapter 7 bankruptcy.

Exempt vs. Non-exempt Property

Filing for Chapter 7 bankruptcy means that you are going to have to turn over certain property that is considered non-exempt. That property will be sold and any money made will go toward paying off your debts. Non-exempt property includes:

  • Valuable collections (stamps, coins, etc.)
  • Any cash, stocks, bonds and investments
  • Rental properties with equity

Exempt property (the things you'll get to keep) includes:

  • Vehicles, usually one per licensed driver 
  • Jewelry, up to a certain value
  • Household appliances, goods and furnishings 
  • The equity in your home

Should You File for Bankruptcy in Texas?

Drowning in debt can be overwhelming and when you decide you need help, it is best to contact an experienced lawyer. Attorney J. Thomas Black has over 30 years of Texas bankruptcy law experience and is highly qualified to make recommendations that can help eliminate your mounting financial troubles. During your first free consultation with Mr. Black, he will ask you very detailed questions about your money issues so that he will be able to decide whether or not filing Chapter 7 bankruptcy is a viable option for you. Contact him today at 888-707-1233.