Houston Chapter 7 Bankruptcy Attorney

A Faster, Cleaner Path to a Fresh Financial Start

Chapter 7 bankruptcy is the most powerful debt-relief tool in federal law. When you file, an automatic stay immediately stops all collection activity — calls, lawsuits, garnishments, and foreclosure. Within three to five months, most unsecured debts are permanently discharged. You walk away with a clean slate and keep every dollar you earn going forward.

At the Law Office of Jeremy T. Wood, PLLC, I’ve guided hundreds of Houston-area individuals and families through Chapter 7. My goal isn’t just to get you through the process — it’s to make sure you come out the other side in the strongest position possible, with maximum assets protected and a clear path forward.

Who Chapter 7 Is Right For

Chapter 7 is typically the right choice when:

• You carry more unsecured debt — credit cards, medical bills, personal loans — than you can realistically repay
• Your income is at or below the Texas median for your household size, or you pass the full means test
• You want fast resolution: Chapter 7 closes in months, not years
• You don’t need to catch up on a mortgage or car loan (Chapter 13 handles that better)

If you have substantial equity in property you want to protect, or if you’re behind on a secured debt and want to keep the collateral, Chapter 13 may serve you better. I’ll give you a straight answer during your free consultation — not a pitch.

What You Can Keep: Texas Exemptions

Texas has some of the most generous bankruptcy exemptions in the country. You also have the option to use federal exemptions instead — we’ll choose whichever protects more of your specific assets.

Homestead

Unlimited equity in your primary residence, within acreage limits (10 acres urban / 100 acres rural for an individual, 200 acres for a family). Many Houston homeowners keep their home entirely — with no dollar cap on equity protected.

Vehicles

One motor vehicle per licensed household member. No dollar limit under Texas exemptions — the full value of each vehicle is protected.

Personal Property (up to $50,000 / $100,000 for families)

Home furnishings, clothing, food, firearms, jewelry, athletic equipment, and more — up to $50,000 for a single adult or $100,000 for a family. This is a broad category that protects most of what people actually own.

Retirement Accounts

IRAs, 401(k)s, 403(b)s, pensions, and most tax-exempt retirement accounts are fully exempt with no dollar limit. This is one of the most important protections — your retirement savings almost always survive Chapter 7 completely intact.

Wages and Tools of the Trade

Current unpaid wages are fully exempt. Tools, equipment, and books reasonably necessary for your livelihood are also protected.

The Chapter 7 Process, Step by Step

1. Free Consultation: We review your income, debts, and assets to confirm Chapter 7 is the right fit and that you qualify under the means test.
2. Credit Counseling: Federal law requires a brief online counseling course (typically 1–2 hours) before filing. My office will direct you to an approved provider.
3. Document Gathering: Six months of pay stubs, two years of tax returns, bank statements, and a complete debt list. I’ll give you a straightforward checklist.
4. Petition Filing: We prepare and file your petition, schedules, and means test with the Southern District of Texas, Houston Division. The automatic stay takes effect the moment we file.
5. Automatic Stay: All collection activity stops immediately — calls, letters, lawsuits, garnishments, bank levies, and foreclosure proceedings. Creditors who violate the stay can be held in contempt of court.
6. Trustee Review: The court appoints a trustee to review your petition. In most cases with properly applied Texas exemptions, there are no non-exempt assets to liquidate — called a “no-asset” case.
7. 341 Meeting of Creditors: About 30–45 days after filing, you attend a short meeting (typically 5–10 minutes) with the trustee. I will be there with you. Creditors can appear but rarely do. The questions are straightforward and I’ll prepare you for every one of them.
8. Discharge: Approximately 60 days after the 341 meeting — usually 3–5 months from the filing date — the court enters your discharge. Eligible debts are legally and permanently eliminated.

Debts Eliminated by Chapter 7 Discharge

• Credit card balances
• Medical and hospital bills
• Personal and signature loans
• Payday loans
• Old utility bills
• Most civil court judgments
• Business debts and personal guarantees on business debt
• Income tax debt at least three years old (subject to IRS timing rules)
• Repossession and foreclosure deficiency balances
• Lease obligations after surrender of the leased property

Debts That Survive Chapter 7

• Child support and spousal maintenance
• Recent income taxes (generally less than three years old)
• Student loans (except in rare “undue hardship” cases — we can evaluate this)
• Debts from fraud, false pretenses, or intentional misconduct
• Criminal fines, restitution, and DUI-related judgments
• Secured debt if you want to keep the collateral (requires reaffirmation or redemption)

Keeping Your Car or Home in Chapter 7

Chapter 7 discharges your personal liability on secured debts, but the creditor’s lien on the collateral survives. If you want to keep a vehicle or home, you have three options:

Reaffirmation: You enter a new agreement with the lender, remaining personally liable on the debt in exchange for keeping the asset. I’ll advise honestly whether reaffirmation makes financial sense given your situation.

Redemption: You pay the lender the current market value of the collateral — not the full loan balance — in a lump sum and keep the property free and clear. This can be a powerful option when you owe significantly more than the asset is worth.

Surrender: You give back the property. Your personal liability on the loan is discharged, with no deficiency balance. Sometimes walking away is the right financial move.

Common Questions About Chapter 7

Will my employer find out?

Bankruptcy is a public court filing, but employers don’t receive automatic notification. Most employers never learn about an employee’s personal bankruptcy. Federal law prohibits private employers from discriminating against employees solely on the basis of a bankruptcy filing.

Can I file if I’ve filed before?

Yes, with waiting periods. After a Chapter 7 discharge, you must wait eight years from the prior filing date before filing another Chapter 7. After a Chapter 13 discharge, the waiting period is four years.

Will I lose my retirement accounts?

Almost certainly not. Retirement accounts are fully exempt under Texas and federal law with no dollar cap. This is the single most common misconception about bankruptcy — your 401(k) and IRA are almost always 100% protected.

What about my tax refund?

A refund for the tax year in which you file may be partially property of the bankruptcy estate. We time filings carefully and apply available exemptions to protect as much as possible.

Life After Chapter 7: Rebuilding Credit

A Chapter 7 discharge appears on your credit report for up to 10 years, but its impact fades significantly over time — and the relief is immediate. Many clients qualify for secured credit cards within months of discharge, auto loans within a year, and FHA mortgages as early as two years after discharge.

I provide post-discharge credit guidance to every client. Getting through Chapter 7 is the beginning of your financial recovery, not the end.

Ready to Start? Let’s Talk.

If debt is controlling your life, you don’t have to keep living that way. Call the Law Office of Jeremy T. Wood, PLLC at (713) 366-1288 for a free, confidential consultation. I’ll review your situation honestly, explain your options clearly, and tell you whether Chapter 7 is the right move — with no pressure either way.