Facing financial struggles can be one of the most challenging experiences in life. Mounting debts, constant calls from creditors, and the fear of losing your assets can take a serious toll on your mental and emotional well-being. Thankfully, if you're in this situation, bankruptcy may offer a solution to help you regain control over your financial future. At Shuster Law PLLC, a leading Texas bankruptcy law firm, we understand the difficulties you’re going through and are here to guide you through the process.



One of the most common forms of bankruptcy is Chapter 7, often referred to as "liquidation bankruptcy." It’s designed to help individuals with significant debt wipe the slate clean and get a fresh start. However, not everyone qualifies for Chapter 7 bankruptcy, and understanding the criteria can be complicated. This is where our experienced attorneys at Shuster Law PLLC come in. We work closely with our clients to evaluate their unique financial situations and determine the best course of action.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a legal process that allows individuals to discharge most of their unsecured debts, such as credit card debt, medical bills, and personal loans. In exchange, the bankruptcy trustee may liquidate some of the debtor's non-exempt assets to repay creditors. However, Texas offers generous exemptions that allow many filers to keep most, if not all, of their property, such as their home, car, and essential household goods.

The primary goal of Chapter 7 bankruptcy is to provide individuals with a fresh financial start by eliminating overwhelming debts. Once the process is complete, the debtor is no longer legally obligated to repay the discharged debts, giving them the opportunity to rebuild their financial life.

Who Qualifies for Chapter 7 Bankruptcy in Texas?

Qualifying for Chapter 7 bankruptcy in Texas involves meeting certain legal requirements, primarily the means test. The means test is designed to ensure that Chapter 7 is only available to individuals who truly cannot afford to pay back their debts.

Here’s a breakdown of the main qualifications:

1. Income Limits: To qualify for Chapter 7 bankruptcy, your income must be below the median income for a household of your size in Texas. The income limits are based on household size and are periodically updated to reflect economic changes. If your income falls below this threshold, you automatically qualify for Chapter 7 bankruptcy.
2. The Means Test: If your income is above the median income, you will need to pass the means test. The means test examines your disposable income by subtracting certain allowable expenses (such as living costs, medical bills, and taxes) from your total income. If your disposable income is too high, you may not qualify for Chapter 7 bankruptcy, but you could still explore Chapter 13 bankruptcy as an option, which involves restructuring your debt into a manageable repayment plan.
3. Previous Bankruptcies: If you have filed for bankruptcy in the past, you may need to wait a certain amount of time before you can file again. For Chapter 7, the waiting period is typically eight years from the date of your previous discharge.
4. Honest Disclosure: Bankruptcy requires full transparency. You must provide a complete and accurate list of your debts, assets, income, and expenses. Failure to disclose this information can result in the dismissal of your case or even charges of bankruptcy fraud.
5. Financial Counseling: Before filing for Chapter 7 bankruptcy, you are required to complete a credit counseling course from an approved agency. This ensures that you understand all available alternatives to bankruptcy and are making an informed decision.

Why Choose Shuster Law PLLC for Your Bankruptcy Case?

Filing for Chapter 7 bankruptcy can be a complex process, but with the right legal guidance, it can also be the first step toward a brighter financial future. At Shuster Law PLLC, we’re committed to helping you find relief from debt and regain control of your financial life.

Here’s how we can assist you:

• Personalized Legal Advice: We take the time to understand your unique financial situation and explain all your available options. If Chapter 7 bankruptcy isn’t right for you, we can explore other alternatives, such as Chapter 13 bankruptcy or debt settlement.
• Comprehensive Case Evaluation: Our attorneys will carefully review your income, assets, and liabilities to determine whether you meet the requirements for Chapter 7 bankruptcy. We’ll guide you through the means test and help you navigate any potential challenges.
• Protection from Creditors: Once you file for bankruptcy, an automatic stay goes into effect, which temporarily halts all collection efforts from creditors. This can give you immediate relief from harassing phone calls, wage garnishments, and even foreclosure proceedings.
• Maximizing Your Exemptions: Texas offers some of the most generous bankruptcy exemptions in the country, allowing you to protect important assets like your home, vehicle, and personal belongings. Our team will help you take full advantage of these exemptions to safeguard as much of your property as possible.
• A Fresh Financial Start: The ultimate goal of Chapter 7 bankruptcy is to give you a clean slate. After your debts are discharged, you can begin rebuilding your credit and working toward a more stable financial future. We’ll be with you every step of the way, providing support and advice as you take this important step.

Take the First Step Toward Financial Freedom

If you're facing overwhelming debt and are unsure where to turn, the experienced attorneys at Shuster Law PLLC are here to help. We understand that every financial situation is different, and we’re committed to finding the right solution for you. Whether you qualify for Chapter 7 bankruptcy or another form of debt relief, our team will provide the legal guidance you need to move forward with confidence.

Contact Shuster Law PLLC today for a consultation. Let us help you take the first step toward a brighter, debt-free future. Together, we can chart a course toward financial stability and peace of mind.