Chapter 7

Chapter 7 is considered the “liquidation” bankruptcy.  It is designed to free the debtor from his or her financial obligations while still maintaining assets. Under Bankruptcy Law, there are provisions called Exemption Laws which allow the debtor to keep his or her property so long as the Exemption amount covers the value of the property.  It is rare in Texas that the Exemptions either Federal or State would not cover the value of the debtor’s assets.