Chapter 7 Bankruptcy in Houston, Texas:
Your Guide to Debt Relief with Case Law Legal

If you're drowning in credit card bills, medical expenses, or personal loan debt, Chapter 7 bankruptcy may offer the financial relief you need. At Case Law Legal, our experienced Houston bankruptcy attorneys specialize in helping individuals and families eliminate debt and start fresh through Chapter 7 bankruptcy. We provide personalized, compassionate, and effective legal representation to guide you through the entire process.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, often called "liquidation bankruptcy," is the most common form of consumer bankruptcy in the United States. It allows qualified individuals to discharge most unsecured debts, including:

• Credit card debt
• Medical bills
• Personal loans
• Payday loans
• Utility bills

In a typical Chapter 7 case, a court-appointed bankruptcy trustee reviews your assets. While non-exempt property may be sold to repay creditors, most individuals who file for Chapter 7 in Texas are able to keep all of their assets thanks to generous Texas bankruptcy exemptions.

 

Who Qualifies for Chapter 7 Bankruptcy in Houston?

To qualify for Chapter 7 bankruptcy, you must pass the means test, which compares your income to the median income in Texas for a household of your size. If your income is below the median, you likely qualify. If it’s above, further calculations are used to determine your eligibility.

You may qualify for Chapter 7 bankruptcy if:

• Your income is low or has recently decreased.
• You have little or no disposable income after paying basic living expenses.
• You have mostly unsecured debts and cannot keep up with payments.

Not sure if you qualify? Case Law Legal offers free consultations to determine your eligibility and recommend the best course of action.

 

Texas Bankruptcy Exemptions: Protecting Your Assets

One of the biggest concerns for those considering Chapter 7 is whether they’ll lose their home, car, or personal belongings. Fortunately, Texas has some of the strongest bankruptcy exemptions in the country. These exemptions allow you to protect:

• Your primary residence (homestead exemption)
• One vehicle per licensed household member
• Personal property, including furniture, clothing, and tools of your trade
• Retirement accounts, pensions, and certain insurance policies

Our attorneys ensure you maximize your exemptions to protect what matters most.

 

The Chapter 7 Bankruptcy Process: What to Expect

Filing for Chapter 7 bankruptcy in Houston involves several key steps. With Case Law Legal by your side, we make the process straightforward and stress-free.

1. Free Consultation

We start with a confidential consultation to assess your financial situation and explain your debt relief options.

2. Credit Counseling Course

Before filing, you must complete a court-approved credit counseling course.

3. Preparing and Filing Your Petition

Our legal team gathers all necessary financial documents and files your Chapter 7 bankruptcy petition with the U.S. Bankruptcy Court for the Southern District of Texas.

4. Automatic Stay

Once filed, an automatic stay goes into effect, stopping all creditor actions, including:

• Wage garnishments
• Collection calls
• Lawsuits
• Foreclosure proceedings

5. Meeting of Creditors (341 Meeting)

You’ll attend a short meeting with the bankruptcy trustee. Creditors may attend, but they usually do not. Our attorneys prepare you for this meeting and attend with you.

6. Debt Discharge

Typically, you will receive a discharge of eligible debts within 3 to 6 months of filing. This means you are no longer legally obligated to repay them.

Benefits of Chapter 7 Bankruptcy

Filing for Chapter 7 bankruptcy offers numerous benefits for Houston residents facing financial hardship:

• Eliminates Most Unsecured Debts: Wipe out burdensome debt and start fresh.
• Stops Creditor Harassment: Put an immediate end to collection efforts.
• Fast Process: Most cases are completed in just a few months.
• Asset Protection: With Texas exemptions, most filers keep their home, vehicle, and belongings.
• Fresh Start: Rebuild your credit and financial future with a clean slate.

Rebuilding Credit After Chapter 7

While filing for Chapter 7 does impact your credit, many clients see improvements within a year by:

• Keeping current on any remaining obligations
• Applying for a secured credit card
• Monitoring credit reports and correcting errors
• Practicing responsible financial habits

Case Law Legal also offers post-bankruptcy guidance to help you stay on track and build a stronger financial future.

 

Common Myths About Chapter 7 Bankruptcy

"I’ll lose everything."

False. Most Chapter 7 filers in Texas keep all their assets due to state exemptions.

"My credit will be ruined forever."

False. While bankruptcy remains on your credit report for up to 10 years, many people begin rebuilding credit within 12 months.

"Filing for bankruptcy means I failed."

False. Bankruptcy is a legal tool for financial recovery. Life happens—bankruptcy is about moving forward.

 

Why Choose Case Law Legal for Your Chapter 7 Bankruptcy in Houston?

When you’re overwhelmed by debt, you need an experienced legal team you can trust. Here’s why Case Law Legal is the right choice:

• Dedicated Bankruptcy Lawyers: Focused on consumer bankruptcy law in Houston.
• Free Initial Consultation: No pressure, just answers.
• Tailored Legal Strategy: Every case is unique; we provide custom solutions.
• Compassionate Representation: We treat you with respect, not judgment.
• Affordable Fees: Flexible payment plans available.

Common Chapter 7 Bankruptcy Questions