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Chapter 7 Bankruptcy


Bankruptcy is sometimes called the “Fresh Start Bankruptcy”. It allows you to eliminate your unsecured debts like Credit Cards, Medical Bills, and Payday loans while still keeping your home and personal possessions.

Many people ask, “When is the right time to file for Chapter 7 bankruptcy?”
By the time you are asking this question it is past time to consider filing! Just look at your credit card statements. If you pay only the minimum payment it will take 20 years or longer to payoff the balances. As a rule of thumb, you need to earn about 3 times more than what you owe if you want to payoff that debt in a reasonable time frame. That means if you owe $20,000 in credit cards, payday loans, medical bills, etc., you need to have NET earnings of at least $60,000.

Understanding Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is what most people think of when they hear the word “Bankruptcy”. Chapter 7 Bankruptcy will allow you, the Debtor, to eliminate most of your unsecured debt. Some examples of Unsecured Debt are:

  • Credit Card Bill
  • Medical Bills
  • Payday Loans
  • Repossession Deficiencies
  • Old, unpaid Utility bills

How does Chapter 7 bankruptcy Help you?

Chapter 7 Bankruptcy is a quick and easy way to clear away your unsecured debt. It will allow you to keep your homestead, car, and often all of your personal property. The “Automatic Stay” goes into effect the moment that you file bankruptcy making it illegal for creditors to call and harass you. Further, there is no limit to the amount of debt you can discharge. I have filed bankruptcies for people with $300,000 of debt and more. The bankruptcy process is usually completed within 110 days. Compare that to a 5 year repayment plan that many money management companies suggest and it is obvious how much more efficient the Chapter 7 bankruptcy process is.

What is the typical timeline for a Chapter 7 bankruptcy?
Want more information?

There are many places to get more information on the internet. One good source is the Court’s own website for the Northern District of Texas which covers most of the DFW area. http://www.txnb.uscourts.gov/ . You can also contact my office at 817-494-3344 and I will be happy to answer any questions you may have about the bankruptcy process.

  1. Complete the required Credit Counseling Course from an approved provider.
  2. File the Chapter 7 Bankruptcy
  3. About 45 days after filing you will attend your Meeting of the Creditors
  4. Complete the required Financial Management course from an approved provider.
  5. About 60 days after your Meeting, if there are no objections and you have completed your Financial Management Course, you will receive a Chapter 7 Bankruptcy Discharge