Chapter 7 Vs. Chapter 13 Bankruptcy: Which Is Right For You?
Texas families frequently use the bankruptcy code to halt the stress of constant collection calls and the threat of losing their property. Sudden oil and gas layoffs or unexpected healthcare costs can quickly overwhelm a household budget, but filing is a valid legal tool to regain control rather than a personal failure.
At William H. Lively, Jr. WHL, PLLC, our staff has worked together for nearly two decades. We have handled over 7,000 cases, treating clients with compassion while helping them understand the differences between Chapter 7 and 13 to find real solutions.
Chapter 7: Clearing Unsecured Balances
Chapter 7 bankruptcy discharges various unsecured obligations to free up income for your daily living expenses. While many families worry about losing what they own, strong state laws allow you to protect assets in bankruptcy in Texas. Most filers keep their everyday necessities, such as:
- Clothing and personal effects
- Household goods and furnishings
- Tools of a trade or profession
These exemptions allow you to secure a fresh financial start without losing your exempt property.
Chapter 13: Reorganizing Your Payments
If you do not qualify for a discharge or need to protect specific assets, Chapter 13 bankruptcy establishes a structured three- to five-year repayment plan. This option consolidates your outstanding balances into a single, manageable monthly payment. It is a particularly effective strategy for families facing specific crises:
- Stopping foreclosure in East Texas
- Preventing a vehicle repossession
- Curing defaults on home mortgages
As long as you maintain your court-approved repayment schedule, creditors cannot seize your property during this process.
Request Your Consultation For Debt Relief
Our legal team reviews your income and assets to determine which bankruptcy chapter provides the most significant relief for your household. Because William H. Lively actively litigates in bankruptcy court, you receive experienced guidance based on your specific circumstances. At William H. Lively, Jr. WHL, PLLC, a bankruptcy attorney in Tyler, Texas, can help you evaluate these options without judgment. Call 903-920-0008 or send a message to find out if Chapter 7 or Chapter 13 bankruptcy is the right choice for your family.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.