Will I lose my house or car in Chapter 7?

Usually not. Texas and Oklahoma exemptions protect a homestead and a vehicle up to generous limits, and you keep financed property by staying current on the loan. Whether your specific property is fully protected depends on your facts.

How much does Chapter 7 cost?

There is a court filing fee plus attorney's fees, which depend on the complexity of the case. Fee terms are set out in a written agreement before any work begins. See the bankruptcy costs page for how fees are structured.

Does Chapter 7 stop a lawsuit or garnishment?

Yes. Filing triggers an automatic stay that stops most lawsuits, wage garnishments, and collection calls immediately, while the case is pending.

How long does Chapter 7 stay on my credit?

A Chapter 7 filing can appear on a credit report for up to ten years, but many people begin rebuilding credit within a year or two after discharge. See the life-after-bankruptcy page.

Chapter 7LiquidationFresh start

Chapter 7 bankruptcy in Texas and Oklahoma

Chapter 7 erases qualifying unsecured debt — credit cards, medical bills, most personal loans — usually within a few months. Newark Law Offices reviews whether you qualify and what you keep. Free consultation.

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What Chapter 7 is

What is Chapter 7 bankruptcy?

Chapter 7 is a form of bankruptcy that discharges (erases) most unsecured debts — such as credit cards, medical bills, and personal loans — without a repayment plan. A court-appointed trustee can sell non-exempt property to pay creditors, but generous Texas and Oklahoma exemptions mean most consumer filers keep everything they own. Most Chapter 7 cases close in about three to four months.

What Chapter 7 discharges — and what it does not

Discharged: credit cards, medical bills, most personal loans, old utility balances, deficiency balances after repossession, and many judgments. Not discharged: most student loans, recent taxes, child support and alimony, and debts from fraud. Secured debts (house, car) can be kept by staying current, or surrendered.

The means test

Chapter 7 is available if your household income is below the state median for your family size, or if a more detailed calculation shows you lack the disposable income to repay creditors. If you do not pass, Chapter 13 is usually the path. We run the test with you on the first call so there are no surprises.

How long does Chapter 7 take?

From filing to discharge, a typical Chapter 7 case takes about three to four months. The automatic stay stops collection activity the day the case is filed; the discharge order that permanently erases qualifying debt is usually entered about 60 days after the meeting of creditors.

What you keep

Exemptions protect your home (Texas allows an unlimited-value homestead within acreage limits; Oklahoma protects a homestead as well), a vehicle, retirement accounts, household goods, and tools of your trade. Whether specific property is fully protected depends on your facts and how long you have lived in the state — that is exactly what the consultation covers.

Prior results do not guarantee a similar outcome. Every matter is different and depends on its own facts.

No outcome is promised or guaranteed. Descriptions of process are general and are not a prediction about any specific matter.

The information on this page is provided for general informational purposes only and does not constitute legal advice.

Attorney advertising. This material is for general information and may be considered advertising under the rules of the State Bar of Texas and the Oklahoma Bar Association.

Frequently asked questions

Will I lose my house or car in Chapter 7?: Usually not. Texas and Oklahoma exemptions protect a homestead and a vehicle up to generous limits, and you keep financed property by staying current on the loan. Whether your specific property is fully protected depends on your facts.
How much does Chapter 7 cost?: There is a court filing fee plus attorney's fees, which depend on the complexity of the case. Fee terms are set out in a written agreement before any work begins. See the bankruptcy costs page for how fees are structured.
Does Chapter 7 stop a lawsuit or garnishment?: Yes. Filing triggers an automatic stay that stops most lawsuits, wage garnishments, and collection calls immediately, while the case is pending.
How long does Chapter 7 stay on my credit?: A Chapter 7 filing can appear on a credit report for up to ten years, but many people begin rebuilding credit within a year or two after discharge. See the life-after-bankruptcy page.