Your Financial Stress Can End Now

  1. Home
  2.  ► 
  3. Bankruptcy
  4.  ► 
  5. Chapter 7 Bankruptcy
  6.  ► Chapter 7 Bankruptcy FAQ

Chapter 7 Bankruptcy: Frequently Asked Questions

Here we have provided answers to some common questions our clients often have about Chapter 7 bankruptcy. For more detailed answers about your specific situation, please call our law office in Tyler, Texas, at 903-920-0008 or send us an email. William H. Lively, Jr. WHL, PLLC, serves clients throughout East Texas, and we offer free initial consultations. Our Texas bankruptcy attorney is here to help you.

How Does Chapter 7 Work?

Also known as “liquidation bankruptcy,” Chapter 7 bankruptcy works by discharging many types of debt. In exchange, the debtor is required to liquidate (or sell) items of property, and the proceeds from the sales go to creditors. A bankruptcy trustee is assigned by the court to oversee the process. Many types of property are exempt from liquidation, such as most homes, your car, most retirement accounts and pensions, and up to $50,000 in personal property for a single filer or $100,000 for a family. Under bankruptcy law, the debtor will also have to take courses in financial management.

Is there a limit to how much debt I can discharge through Chapter 7?

No, there is no cap on how much debt you can discharge through Chapter 7 bankruptcy, unlike when using Chapter 13.

Are there any types of debt that I cannot discharge through Chapter 7?

Yes. Under current bankruptcy laws, you are generally not permitted to discharge of the following types of debt:

  • Student loans
  • Certain types of tax debts
  • Unpaid child support and alimony
  • Fraudulent debts

While student loans and taxes are a problem for many people, often it is things like credit card debt and medical debt — which generally can be discharged — that are the most burdensome.

How long does Chapter 7 bankruptcy take?

Most Chapter 7 bankruptcy cases last about 60 to 90 days after filing. Once the process is complete, the burden of debt will be removed, and you will have a fresh start financially.

Contact Us For A Free Consultation

If you are considering filing for bankruptcy and wondering whether Chapter 7 is a good option for you, please contact William H. Lively, Jr. WHL, PLLC, to set up a free initial consultation. We are a local bankruptcy law firm in Tyler that serves clients across East Texas. Call us at 903-920-0008 or complete our contact form to get started.

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