The Brown Law Firm — Jerome A. Brown, Board Certified Attorney in Consumer Bankruptcy Law and Business Bankruptcy Law by the Texas Board of Legal Specialization — 40+ Years Legal Experience
Personal Bankruptcy
Chapter 7 Bankruptcy
Chapter 7 bankruptcy discharges most unsecured debt, such as credit cards, medical bills, and personal loans, in a single court process with no repayment plan. The moment we file your case, the automatic stay under 11 U.S.C. § 362 stops creditor calls, lawsuits, garnishments, and other collection efforts. Most cases run three to six months from filing to a fresh start.
Chapter 7 is the most common form of personal bankruptcy and is often the fastest path to relief from debt. It lets qualifying individuals get rid of (discharge) most unsecured debt, such as credit cards, medical bills, personal loans, and even some tax and secured debts, without any further liability for these debts. Also, if you are personally liable for business type debts, either directly or through a guaranty, you can discharge such debts. Additionally, debts discharged through bankruptcy do not cause you to incur tax consequences for debt forgiveness. A Chapter 7 bankruptcy case allows you to get a genuine fresh start from burdensome debt.
This page generally walks you through how Chapter 7 works, who qualifies, what property you keep, and what to expect at each step. It's here for you before you decide, and to refer back to while your case is underway.
Is Chapter 7 right for you?
Chapter 7 is for people and businesses who are not able to meet their financial obligations. Whether an individual, with primarily consumer debts, qualifies for a Chapter 7 bankruptcy case depends on several factors, including passing a “means test” under 11 U.S.C. § 707(b), which provides that the individual’s “disposable income” must be below a certain level for the past 6 months. Individuals with primarily non-consumer debts, such as business debts, are exempt from having to do the means test.
Jerome will personally review your financial situation with you to determine whether you will qualify to file a Chapter 7 bankruptcy case. In the vast majority of cases, he is able to have his Clients pass the means test and qualify for a Chapter 7 bankruptcy case, due to his expertise and experience.
What you keep
A common fear we hear from Clients is that filing bankruptcy means losing all their property. For the vast majority of people, this couldn’t be further from the truth. A person’s “exempt” property is, for the most part, protected from creditor claims and may be kept even after bankruptcy. Texas has some of the most generous property exemption laws in the country, including the following:
- Your home. Texas protects unlimited equity in your homestead, subject to acreage limits.
- Your vehicle. One vehicle per licensed driver in the household is protected.
- Retirement. Qualified retirement accounts and pensions are generally fully protected.
- Personal property. Household goods, clothing, jewelry, firearms and tools of your trade are protected up to generous limits.
Most people who file Chapter 7 keep everything they own. Jerome will go through your property with you and determine your exempt property so there are no surprises.
What debts get discharged, and what doesn't
Chapter 7 discharges most unsecured debt: credit cards, medical bills, personal loans, and similar obligations.
Some debts are not dischargeable, including most child support and alimony, most recent taxes, and most student loans. Secured debts like a car loan or mortgage are handled differently: you can keep the property by continuing to pay the debt, or surrender the collateral to the creditor and discharge the balance of the debt.
Once discharged, you are no longer legally responsible for those debts, and creditors cannot pursue you for them. Jerome will analyze your debts and advise you as to which debts are dischargeable so you know exactly where you stand.
The process, step by step
Once you decide to hire our Law Firm, Jerome will discuss the bankruptcy process generally with you and formulate a plan for handling your case. His team will then provide you with the initial documentation and instructions to get your case started. We will begin representing you immediately.
Once you pay your agreed flat fee to us, we will begin to prepare your bankruptcy case and provide you with the detailed step by step process for completing your bankruptcy case. Most of the work falls on us. Your part is cooperating with us, consisting mostly of providing documents and information to us that we use to prepare your bankruptcy documents and file your case.
- 1
Free consultation
- 2
Initial client forms
- 3
We pull your credit report
- 4
Review your credit report
- 5
Gather your documents and complete intake
- 6
We draft your petition
- 7
Review and approve
- 8
Credit counseling course
- 9
Filing
- 10
Practice meeting of creditors
- 11
341 meeting of creditors
- 12
Financial management course
- 13
Reaffirmation, if applicable
- 14
Discharge and Close
Related reading
- Chapter 13 Bankruptcy
The repayment-plan alternative when the means test doesn't work in your favor.
- Chapter 7 vs. Chapter 13
A direct, side-by-side comparison of both chapters.
- Guide: Cost, Fees & Qualifying
The full detail on the means test and what filing costs.
- Guide: What You Keep
How Texas exemptions protect your home, vehicle, and property.
- Guide: What Gets Wiped Out
Which debts discharge, and which ones survive.
- Foreclosure & Collection Defense
How the automatic stay stops foreclosure, repossession, and garnishment.
- Tax Debt Relief
When IRS tax debt can be discharged the same way.
- Debt Settlement
An alternative path when bankruptcy isn't the right fit.
Preparing for your consultation
Your consultation is a free virtual meeting with Jerome, so there's nothing to gather or bring. Come with your questions. Once you decide to move forward, we'll walk you through exactly what we need, one step at a time.
Common questions
Will I lose my house or car?
Usually no. Texas exemptions protect your homestead and a vehicle per driver. Most people keep everything.
Will creditors stop calling?
Yes. The automatic stay stops creditor calls, lawsuits, and garnishments the moment you file.
How long does it take?
Most Chapter 7 cases finish three to six months from filing to discharge.
Do I have to go to court?
Just one short, informal meeting with a bankruptcy trustee (not a judge), by videoconference, usually lasting 5-10 minutes. Jerome will thoroughly prepare you for and represent you at the meeting.
Will everyone know I filed?
Bankruptcy is a part of the public record, but in practice the only people who know are the ones you tell. It is rarely noticed by anyone else.
Want to go deeper?
We've put four decades of bankruptcy experience into free, plain-English guides, no email required. Read about how Chapter 7 works, what it costs, what you keep, and more.
Browse the Free LibraryStill have questions?
Jerome A. Brown is Board Certified in both Consumer Bankruptcy Law and Business Bankruptcy Law by the Texas Board of Legal Specialization. He'll review your specific situation personally before recommending any path.
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