Understanding Debt Relief With Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a valuable tool for discharging debt and creating a fresh start. Our attorney at The Tisdale Law Firm can guide you through the complexities of bankruptcy. We evaluate your circumstances, explain your options, and partner with you through each step of the process.

Call 254-781-4263 to schedule a complimentary consultation to discuss the bankruptcy process with our skilled lawyer. You may meet with us at our Killeen office.

Does Chapter 7 Bankruptcy Liquidate All Of Your Property?

Chapter 7 bankruptcy is commonly called liquidation bankruptcy because some of your assets are liquidated to pay off debts before the rest of your debts are discharged. However, bankruptcy's objective is to help you gain control of your finances, not to take everything you own. Therefore, some property is exempt from liquidation, and some people do not lose anything. In Texas, you choose whether you will utilize the federal bankruptcy exemptions or Texas' state exemptions. Common property exemptions include:

  • Your primary residence and automobile
  • Household furniture
  • Family heirlooms
  • A portion of your jewelry

Speak with our attorney to learn what exemptions apply given your circumstances, and how to utilize the exemptions to your greatest benefit.

Can You Discharge All Of Your Debts?

While Chapter 7 bankruptcy discharges the bulk of your debts, you retain certain types of debt, including:

  • Student loans
  • Child support payments
  • Spousal support (alimony) payments
  • Certain taxes and other amounts owed to governmental agencies
  • Mortgage payments and select property liens
  • Debt incurred by fraud or due to drunk-driving accidents for which you were at fault

While Chapter 7 bankruptcy does not completely eliminate debt, nondischargeable debt payments are more manageable once the bulk of your debt is dismissed.

Contact Our Experienced Attorney For A Free Consultation

Call 254-781-4263 to speak with our firm, or contact us online. Our experienced attorney will provide you with a free consultation and inform you of your bankruptcy options.

In order to file for Chapter 7 bankruptcy, you must pass a "means test." We can determine whether you qualify for Chapter 7, or navigate you through the Chapter 13 bankruptcy process if you do not. Note that disabled veterans may be exempt from the means test if you assumed the bulk of your debt while serving in the military.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.