Bankruptcy can change your life when used right. Thousands file bankruptcy successfully in Texas every year. Why? That is the subject of this guide. We’ll focus on the advantages of filing Texas Chapter 7 bankruptcy.

How Does a Chapter 7 Bankruptcy Work?
Chapter 7 bankruptcy discharges you of both unsecured and secured debts. The common reasons for filing include because of a large medical debt or being unemployed and having a high credit card debt. Since many of us lack health insurance, medical debt is the leading cause of bankruptcy, and one of the advantages of using Chapter 7, as you can discharge this debt in a matter of months. You file with the courts. You list all debts you want to discharge. You continue paying, if wanted, on certain debts, such as a secured debt on your home. And then in a matter of months you can be free to move on with your life.

How Much Can You Save with Chapter 7?
Typically you can save tens of thousands of dollars if not more with a Chapter 7 bankruptcy. You must first be eligible, and that is governed by how much you make. If you make more than the Texas median income, as we go over often on the Higgins and Associates blog, then you will not be eligible. If you make less, perhaps because you have a low income or are recently unemployed, you would likely be eligible. If you are not eligible, you may be able to file Chapter 13.

Why File Chapter 7?
We went over one of the reasons: you save money. You might save tens of thousands of dollars. If you have an impossible debt you simply cannot pay, you should consider bankruptcy. There are some alternatives to Chapter 7. You might file Chapter 13, where you buy yourself time to pay back debts. You might sell some assets. You might tap into your savings. But sometimes Chapter 7 bankruptcy is your best option.

Who Can Help?
Texas bankruptcy can be complex. While it is possible to file Chapter 7 bankruptcy without the help of a Texas lawyer, you might make some mistakes. You may have some questions you need help with. You may have concerns. You may have certain assets or properties you fear losing. If you are like most, you are unaware of bankruptcy laws. If that is the case, it’s time to hire an experienced Texas bankruptcy lawyer.