Judith A. Swift
Free Consultations 214.696.6200

Chapter 7 Bankruptcy Dallas, TX

Chapter 7 bankruptcy provides debt relief for qualified individuals and businesses. While Chapter 7 does not enable you to restructure secured debt or catch up on past-due payments or taxes, experienced bankruptcy attorneys can help clients in Dallas, Plano, Frisco, and throughout Texas discharge unsecured debt, providing them with a clean slate.

Determining who qualifies for Chapter 7 bankruptcy

Persons with income below or near their state median income may qualify for Chapter 7. This is determind by the Means Test. This test is more complicated than it appears. It takes experienced bankruptcy attorneys to assess your situation and help select the appropriate bankruptcy solution. As an experienced Dallas bankruptcy attorney, I have helped thousands of individuals and businesses in Dallas, Plano, Frisco and throughout north Texas.

The means test determines which chapter you qualify for

Personal bankruptcy begins with a means test that estimates your ability to repay your outstanding debt.  In the first phase, the test compares your income to a median income defined by the state of Texas. If your income is above the median, the second phase compares your income with your outstanding debt.  If you have a sufficient amount of excess income above your basic expenes, you typically qualify to begin the Chapter 13 bankruptcy process.

How Chapter 7 bankruptcy works

 As in any bankruptcy, a person (or business) filing Chapter 7 must list all assets, all liabilities, disclose average monthly income and expenses and answer questiona pertaining to your financial affairs. In personal bankruptcies in Texas, most or all of a family's assets are exempt- which means that you get to keep them. A trustee is assigned to the case. The trustee will take and liquidate any non-exempt property, liquidate it and disburse the proceeds to creditors. All debtors must attend a Meeting of Creditors between 20 and 30 days from the day the case was filed. I will be with you and must ask you a list of questions about your financial affairs. The trustee will also ask similar questions. In most personal Chapter 7s, creditors do not appear; in business cases, creditors often do appear. Creditors can also ask questions. In most personal Chapter 7s, this meeting will take about 5 minutes; business cases can last much longer. Approximately 75 days after this meeting, if no objections are filled (generally, none are filed) the Court will issue your discharge- which releases you from personal liability for all dischargeable debts. In a Chapter 7, there is no court repayment plan.

Chapter 7 is generally quicker, easier and cheaper than a Chapter 13 or Chapter 11. If your only problems are general unsecured debts and you qualify for Chapter 7, it is usually your best choice.

The current economic environment has created financial strife for many individuals and businesses in Dallas, Plano, and Frisco. As a Dallas bankruptcy attorney, I have the skills and experience to help find the right solutions and help clients work toward financial freedom. By the end of your free consultation, you can gain a clear understanding of whether Chapter 7 bankruptcy or another solution is right for you—and exactly what to do next. Call me at 214-696-6200, send an email, or stop by my office to find the fresh start you need.

A message from Judith...

I say welcome, and mean it, but I know you would love to be doing something else right now, anything but reviewing Dallas bankruptcy attorney sites. I do know how you are feeling. I have helped thousands of people who found themselves in your exact situation and are now over the ordeal and enjoying their lives again. They have been given a fresh start in life. After all, that is what the bankruptcy laws were designed to do - allow you to start over.