Chapter 7

Beaumont Chapter 7 Bankruptcy Lawyers

Packard & Packard, PLLC Handles Chapter 7 Bankruptcy in Beaumont, TX Beaumont Bankruptcy Lawyer

When considering bankruptcy, many people picture Chapter 7 bankruptcy. This may involve returning property that you can no longer afford, liquidating non-exempt assets and using the proceeds to pay unsecured debts, and discharging the remaining unsecured debts. A Chapter 7 bankruptcy can be relatively short compared to bankruptcy under other chapters and can be particularly helpful if you do not have much non-exempt property. If desired, secured debts may be satisfied by surrendering the collateral back to the creditor.

Struggling with overwhelming debt? Contact us online or call (409) 858-0984.

There are options within a Chapter 7 bankruptcy that may allow you to satisfy your secured debt and keep your property:

  • Reaffirmation- Keeping a vehicle and continue to pay for it through a renewal of the contract with the same or modified terms
  • Redemption- Paying the current value of the collateral

Either of these options may allow you to keep your property, and while they may not be as affordable as the options in a Chapter 13 case, they may make the most sense, particularly if you are able to exempt enough cash or can otherwise redeem the collateral in a redemption.

How Do I Know if Chapter 7 Bankruptcy Is Best?

There are some situations that do not work well with a Chapter 7 bankruptcy. Owning a community property interest in a home with a non-filing spouse can create serious problems. In some circumstances, you may not be able to exempt all of the equity in your home, particularly if your spouse is not filing bankruptcy. If this occurs, the trustee may sell the home and use your spouse’s non-exempted portion of the proceeds to pay your unsecured debts.

Also, prior transfers and gifts may cause problems, particularly if they were to family members. In some cases, the trustee may avoid (reverse) the transfer and require the person to turn over the gift or thing transferred. These scenarios may affect your decision on whether a Chapter 7 bankruptcy is right for you, so it is important to discuss them with your attorney.

Do I Qualify for Chapter 7 Bankruptcy?

While Chapter 7 bankruptcy is a very popular form of debt relief, not everyone qualifies for it. If you received a discharge through a bankruptcy under Chapter 13 in the last six years, or a Chapter 7 in the last eight years, you may not be eligible for a new Chapter 7 discharge. To qualify, you must also be able to prove that you do not have the financial means to repay a certain portion of your creditors through a Chapter 13 payment plan.

When filing for Chapter 7, you must disclose details of your financial condition and history. Some of these details include

  • Your debts;
  • A list of all property (exempt or not), such as bank balances, furniture, clothing, and home equity;
  • Any lawsuits or rights of action;
  • Your current living expenses and income; and
  • All transfers, gifts, and preferences (payments to certain creditors) during various time periods.

Not sure if you qualify for Chapter 7 bankruptcy?
Let us review the details of your case during a complimentary consultation!

Beaumont Bankruptcy Attorneys

We work hard to help people resolve their debts and to help them get back on their feet. Call Packard & Packard, PLLC and visit with us about your situation. If a Chapter 7 bankruptcy is right for you, we will work with you to prepare your case for filing and prosecution. We will make sure that your case is prepared properly and will be with you to explain and guide you through the Chapter 7 process.

We are ready to help. Just contact our office for a free consultation.


  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.