If you’re reading this, there’s a good chance you’re feeling buried. Maybe the bills are stacking up. Maybe you’re dodging calls from creditors, or waking up in the middle of the night with your heart racing, wondering how you’re going to make it through the month. If any of that sounds like you, we want you to know something important right off the bat—you’re not alone. And more importantly, there is a path forward.
For countless Texans, that path starts with Chapter 7 bankruptcy. But is it right for you? That’s a big question. And at McCarty Larson, PLLC, we’ve helped many good folks like you find the answer—and peace of mind—with compassionate, honest legal guidance.
Let’s talk about what Chapter 7 is, how it works in Texas, and how it might be the fresh start you’ve been hoping for.
What Chapter 7 Bankruptcy Really Means
Chapter 7 is often called “liquidation” bankruptcy, but don’t let that word scare you. In truth, most people who file Chapter 7 in Texas don’t lose their home or their car. In fact, the law protects most of what you own. The goal of Chapter 7 isn’t to take things from you—it’s to give you relief from crushing debt so you can breathe again.
Here’s how it works in plain terms: when you file, the court places a temporary hold on all debt collection. That means no more phone calls, no more wage garnishments, and no more lawsuits. A trustee is assigned to your case to review your assets and debts, but because Texas has some of the most generous exemptions in the country, most people who file keep everything they own.
And then, usually within a few short months, your qualifying unsecured debts—like credit cards, medical bills, payday loans—are wiped away. Just gone. You don’t have to pay them back.
Now, it’s important to know that Chapter 7 doesn’t erase every kind of debt. Things like child support, recent taxes, and student loans generally stay with you. But for most folks drowning in credit card debt or hospital bills, Chapter 7 is like a financial life preserver.
Why Texas Is Different (In a Good Way)
If you live in Texas, you’re in one of the best states to file bankruptcy, thanks to strong exemption laws. These laws let you protect your home, your car, your retirement accounts, and personal belongings—up to very generous limits. That means you don’t have to choose between getting out of debt and keeping your life together.
Let’s say you own a home in Midlothian or Burleson. Texas’ homestead exemption protects it, regardless of value, as long as it sits on 10 acres or less in town, or 100 acres in rural areas. That’s a big deal. Your home is your heart, your family’s safe place. Chapter 7 won’t take that from you.
And cars? Texas lets you keep one for every licensed driver in your household. Retirement accounts? Protected. Clothing, furniture, and tools of your trade? Protected too. Bottom line: Chapter 7 in Texas gives you the chance to reset your finances without having to start over from scratch.
Who Qualifies for Chapter 7?
This is where we sit down and have a real conversation. Not every situation is the same, and not everyone qualifies for Chapter 7. The main requirement is passing what’s called the “means test.” That’s a way of measuring your income against the median income for a household your size in Texas. If you’re under the limit, you typically qualify. If you’re over, there are still ways to qualify, depending on your specific expenses and debt load.
The key is to talk it through with someone who knows the system inside and out—someone who cares enough to walk with you, not just hand you a packet and wish you luck. At McCarty Larson, that’s exactly what we do. We listen first. We learn about your life, your worries, your goals. And then we help you decide what makes the most sense for you.
What Life Looks Like After Chapter 7
This might be the most important part of the whole conversation. Because it’s not just about getting rid of debt—it’s about what comes next.
After a successful Chapter 7 case, you’ll have no obligation to pay back those qualifying debts. You’ll start getting your paycheck without garnishments. You’ll be able to pick up the phone without dreading who’s on the other end. Your stress will ease. You’ll start sleeping through the night again.
And yes, your credit will take a hit. But for most people we help, their score was already hurting from late payments and collections. What Chapter 7 does is stop the bleeding. It gives you a clean slate. Within a year or two, many of our clients see their credit start to bounce back. Some even qualify for car loans or mortgages within two to three years.
The truth is, Chapter 7 isn’t the end of your financial life—it’s the beginning of your new one.
How We Help You at McCarty Larson, PLLC
We know this isn’t just about money. It’s about pride. It’s about your kids. It’s about making it to Friday without crying in the car. That’s why we treat every client who walks through our door like family.
We don’t judge. We don’t lecture. We sit down beside you and make a plan together.
We’ll walk you through every step—filing the petition, attending your court meeting, answering your questions day or night. We’ll talk honestly about what to expect, what you’ll keep, and how to rebuild. And if Chapter 7 isn’t the right fit, we’ll help you explore other options like Chapter 13.
This isn’t a paperwork job to us. This is personal. We’re Texas born and raised. We know what it means to stick by folks when times get tough. We’ve helped hundreds of Texans from all walks of life—teachers, nurses, small business owners, young families, retired couples—get the relief they deserve. And we can help you too.
Ready to Find Out?
If you’re unsure whether Chapter 7 is right for you, the next best step is a free consultation with one of our bankruptcy attorneys. No pressure. No sales pitch. Just answers.
You’ll leave our office with clarity. You’ll understand your options. And you’ll know you’re not walking this road alone.
Call us today or fill out the contact form on our site. Let’s have that conversation. Let’s get you back to breathing easy.