Debt has a way of building slowly, then all at once. One late payment turns into three, interest piles on, and before you know it, you’re facing calls from creditors and sleepless nights. If you’ve reached the point where paying down what you owe feels impossible, Chapter 7 bankruptcy may be an option worth considering. In Texas, filing Chapter 7 can give you a chance to wipe out certain debts and reset your financial life.
At the Law Offices of Keith Wier, PLLC (www.keithwierlaw.com), we’ve helped people across Texas use Chapter 7 to find real relief. But what does the process look like, and how do you know if it’s right for you? Let’s break it down.
What Chapter 7 Bankruptcy Means
Chapter 7 is often called “liquidation bankruptcy,” though that name can be a little misleading. Yes, the bankruptcy trustee has the power to sell off certain non-exempt assets to repay creditors, but in many Texas cases, people keep most (if not all) of what they own. That’s because Texas has some of the most generous bankruptcy exemptions in the country, especially when it comes to homestead property and personal belongings.
The main goal of Chapter 7 is simple: discharge unsecured debts. Credit card balances, medical bills, payday loans, and personal loans often qualify. Once the process is complete, you’re no longer legally responsible for those debts. It’s not magic, and it’s not easy, but it is a real fresh start.
Who Qualifies for Chapter 7 in Texas
Not everyone can file Chapter 7. To qualify, you’ll need to pass what’s called the “means test.” This looks at your household income compared to the Texas median income for your family size. If your income is below that level, you generally qualify. If it’s higher, there are still ways to qualify based on your expenses, but it gets more complicated.
This is one area where having a Chapter 7 bankruptcy lawyer makes a big difference. The test involves paperwork, calculations, and sometimes close calls. A lawyer can help make sure your situation is presented clearly so you don’t get tripped up by technicalities.
The Filing Process in Texas
Filing Chapter 7 starts with gathering a lot of information—income records, debt statements, property lists, and more. Then, a petition is filed with the bankruptcy court. The moment your case is filed, something powerful happens: an “automatic stay” goes into effect. That stay puts a stop to collection calls, lawsuits, wage garnishments, and most repossessions.
Next comes a meeting with the bankruptcy trustee, known as the 341 meeting. It’s not in a courtroom, and it’s usually quick. The trustee asks a few questions to confirm your paperwork is accurate. Creditors can attend, but most don’t. After that, if everything goes smoothly, debts are discharged in just a few months.
What You Can Keep
Many people worry about losing their home, car, or retirement savings in Chapter 7. In Texas, the law is surprisingly protective. The homestead exemption, for example, allows you to keep your primary residence without a strict value limit, as long as it meets acreage requirements. Cars, household goods, and personal items are often exempt too. Retirement accounts are generally safe.
Of course, there are limits, and every case is different. That’s why it’s important to review your specific situation with a lawyer before filing. Knowing what’s protected and what’s at risk helps you make an informed decision.
A Story That Sticks With Me
I once worked with a man from East Texas who had been drowning in medical debt after an unexpected hospital stay. He had always paid his bills on time before, but the medical costs were more than he could handle. When we looked at his finances, Chapter 7 was clearly the best choice. Within months of filing, the stress lifted. He didn’t lose his house, he kept his truck, and he finally had breathing room again. His only regret was not asking for help sooner.
Taking the First Step Toward a Fresh Start
Filing Chapter 7 bankruptcy in Texas isn’t the end of the road—it’s the start of a new one. It’s a chance to put the past behind you and rebuild without the weight of unmanageable debt. The process can feel overwhelming, but you don’t have to go through it alone.
At the Law Offices of Keith Wier, PLLC, we help Texans understand their options and move forward with confidence. If you’re wondering whether Chapter 7 is right for you, visit www.keithwierlaw.com to learn more or to get in touch.
A fresh start may be closer than you think—all it takes is the courage to explore your options.