Chapter 7 bankruptcy is available to individuals who earn less that the state median income.  In Chapter 7 a trustee is appointed to liquidate non-exempt property, and the sales proceeds are used to pay creditors. Most debts are then discharged and creditors are forever barred from seeking recovery from the individual.  There is no repayment plan.  Since Texas has very generous exemption statutes, in most cases the individuals can exempt most or all of their property.   For example, in most instances a person can keep their homestead although they will remain responsible for any secured debt related to the property if they do.  The same is often true for vehicles.

The process takes about 100 days from start to finish and attendance at one hearing is required. Sometimes more than one hearing may be required.  One of the most critical aspects of Chapter 7 process is complete and accurate preparation of the required bankruptcy petition, schedules and statement of financial affairs.  At Lundberg Law we meticulously prepare and review these documents.  We recommend a free consultation if you are an individual that is considering filing Chapter 7.


Chapter 7 bankruptcy is also available for businesses that do not want to continue to operate.  In a business Chapter 7 proceeding the assets of the company are liquidated and the business affairs of the entity are wound up  A Chapter 7 trustee is appoint to administer the affairs of the business. Often a Chapter 7 proceeding is an effective way to wind up the business.  During the bankruptcy process, Lundberg Law serves as your representative for courts, creditors and the trustee’s office.  If you are have a business and are considering a Chapter 7, Lundberg Law provides free consultation.