Erase Credit Card Debt with Chapter 7 Bankruptcy in Texas

 Posted on October 06, 2023 in Chapter 7

If you are struggling with overwhelming credit card debt in Texas, filing for Chapter 7 bankruptcy could provide the fresh start you need. Here is how the Chapter 7 process can eliminate credit card balances and how a Texas lawyer can help you.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy completely wipes out many types of unsecured debts, including credit card balances. This allows you to get out from under crushing debt and restart your financial lives.

However, some assets may be liquidated to repay creditors. A trustee sells non-exempt assets, and funds are disbursed to creditors. Exempt assets like your homestead are protected under Texas law.

Filing for Chapter 7 Bankruptcy in Texas

To file for Chapter 7 bankruptcy in Texas, you will complete a petition and schedules detailing your debts, assets, income, and expenses. The forms are submitted to a Texas bankruptcy court along with a filing fee.

You may be required to complete credit counseling prior to filing. The trustee will then liquidate your non-exempt assets and distribute proceeds to creditors per Texas and federal bankruptcy law.

After assets are liquidated, you receive a discharge of qualifying debts like credit card balances. The discharge order stops creditors from attempting further collection.

Texas Exemptions Protect Assets

Texas has generous exemptions that protect more assets like your home, vehicle, and personal property. The homestead exemption is unlimited for a residence that does not exceed 10 acres in a town, city, or village or 100 acres in the country.

For families, this will double to 200 acres. If you sell your house, the sale proceeds are exempt for six months after the sale.

An experienced Texas bankruptcy attorney can help ensure you correctly claim all available exemptions when filing your Chapter 7 case.

The Discharge Order Eliminates Credit Card Debt

Once the liquidation process is completed, the Chapter 7 discharge order legally eliminates eligible credit card balances and other unsecured debts. This provides a fresh start free from overwhelming card debt.

However, certain debts like student loans, alimony, and recent taxes may not be discharged. Any assets secured by valid liens are also not dismissed through Chapter 7.

Contact a Schertz, TX Bankruptcy Lawyer

If you are bombarded down by credit card debt, Chapter 7 bankruptcy can provide much-needed relief. In most cases, filing under Chapter 7 bankruptcy in Texas will eliminate credit card balances and allow starting over debt-free. Just be sure to claim all applicable.

Work with an experienced New Braunfels, TX bankruptcy attorney to discuss your specific situation. Call Law Offices of Chance M. McGhee at 210-342-3400 for a free consultation and see if you qualify.