Bankruptcy FAQ for Arlington & North Texas

Chapter 7 is typically a liquidation path that can discharge qualifying unsecured debt in about four months if you pass the means test. Chapter 13 is a three- to five-year repayment plan used to catch up mortgage or car arrears, stop foreclosure, and reorganize what you keep. Which chapter fits depends on income, assets, and goals.

Usually no for a primary residence that fits Texas homestead rules. Texas has strong homestead protection (acreage limits apply). Chapter 13 is often used when you are behind on the mortgage and need to stop a sale. We map exemptions and sale dates before anything is filed.

Not automatically. Many filers keep a vehicle using exemptions, reaffirmation, redemption, or Chapter 13 plan treatment. The right path depends on equity, loan balance, and whether payments are current.

Filing a bankruptcy petition generally triggers an automatic stay that stops most collection — calls, lawsuits, wage garnishments, and many foreclosure sales — while the case proceeds. Timing matters if a sale or hearing is already on the calendar.

Filing can halt most posted foreclosure sales through the automatic stay. Chapter 13 is the usual tool to cure mortgage arrears over time while you resume regular payments. Call as soon as you have a notice of default or sale date.

Yes in most consumer cases. Once a petition is filed, the stay generally stops ongoing wage garnishments. We also look at whether Chapter 7 discharge or a Chapter 13 plan is the better endgame for the underlying judgment or debt.

Filing can stay a pending lawsuit and many related collection actions. Chapter 7 often discharges qualifying credit card balances. Deadlines to answer a citation still matter — bring the papers to your consult.

Qualification turns largely on the means test (household income vs Texas medians and allowed deductions), plus your assets and recent financial history. Above-median households sometimes still qualify after deductions. We run a preliminary means-test review in a free consult.

Commonly credit cards, medical bills, personal loans, payday loans, and many older utility balances. It generally does not wipe out recent priority taxes, domestic support obligations, or most student loans. Every debt list is reviewed before filing.

Many Chapter 7 cases move from filing to discharge in roughly four months, depending on trustee questions, assets, and whether anything is contested. You typically attend a short 341 meeting of creditors.

Chapter 13 plans run three to five years in most cases. You make plan payments, stay current on ongoing mortgage or car payments when required, and receive a discharge of qualifying remaining unsecured debt when you complete the plan.

Court filing fees are set by the federal courts (commonly cited figures are about $338 for Chapter 7 and $313 for Chapter 13 — confirm current amounts at filing). Attorney fees vary by chapter and complexity. Chapter 13 fees are often paid through the plan. Call (817) 335-8880 for case-specific pricing.

Yes. Machi Wright & Associates offers a free consultation. You speak with counsel about your debts, income, and deadlines — not a call-center screener.

Most Tarrant County cases are filed in the Fort Worth Division of the U.S. Bankruptcy Court for the Northern District of Texas (Eldon B. Mahon U.S. Courthouse, 501 W. 10th St., Fort Worth). Venue and division follow where you live and related rules.

Pam Bassel serves as the Fort Worth Division Standing Chapter 13 Trustee. Plans and 341 meetings are coordinated through the trustee’s office after filing.

It is a required meeting with the bankruptcy trustee (creditors may appear but often do not). You answer questions under oath about your petition, income, assets, and documents. Counsel prepares you and attends with you.

Recent pay stubs or income proof, a list of creditors and balances, monthly expense notes, and any foreclosure, lawsuit, garnishment, or SBA demand papers. Perfect paperwork is not required to start the conversation.

Texas homestead rules can protect a primary residence within acreage limits (commonly discussed as up to 10 acres in a city and more outside). Exact application depends on how title is held, acreage, and other assets. We confirm exemptions before filing.

Texas allows personal property exemptions up to statutory caps for categories like household goods, tools of the trade, and certain vehicles when claimed correctly. We inventory assets so you know what is protected.

It depends on timing, chapter, exemptions, and whether the refund is needed for the estate or plan. Do not assume a refund is automatically yours after filing — ask counsel before you spend it.

Usually not. Student loans are hard to discharge and require a separate showing of undue hardship in most cases. We still map how student loans interact with your budget and chapter choice.

Some older income taxes can be dischargeable when specific age, assessment, and return-filing rules are met. Newer priority taxes often must be paid. Bring notices and transcripts if you have them.

A filing and discharge appear on credit reports for a period of years, but many people begin rebuilding with on-time payments and careful new credit after discharge. A fresh start is the goal — not permanent exclusion from credit.

Mortgage waiting periods depend on loan type (FHA, VA, conventional) and whether you filed Chapter 7 or 13. Lenders set overlays on top of investor rules. We can outline typical ranges; a lender gives the final call.

Yes. Couples may file jointly or one spouse may file alone. Community property and household income still matter for the means test and exemptions. We compare joint vs individual filing in consult.

No. The office is at 1521 N. Cooper St., Suite 340, Arlington, TX 76011, and the firm serves Fort Worth, Dallas, Mansfield, Burleson, Grand Prairie, and communities across North Texas.

Sí. Free consultation is available; call (817) 335-8880 and tell us if you prefer to speak in Spanish.

Many small-business SBA loans include personal guarantees that can follow the owner after the business fails. Options may include workout discussions, Chapter 7, Chapter 13, or a sequenced approach. Bring the note, guarantee, and demand letters.

Yes. We help North Texas clients with SSD/SSI denials and hearings, and we explain how disability income interacts with bankruptcy or debt collection when both issues are on the table.

A judgment can lead to garnishment or liens. Bankruptcy may stay collection and discharge or reorganize the debt depending on the chapter and lien status. Bring the judgment and any writ papers.

Often no — retirement funds are frequently protected, and draining them can worsen the problem. Do not liquidate retirement accounts to pay credit cards without legal advice first.

Once you are represented, many collectors must communicate through counsel, and filing bankruptcy adds the automatic stay. Tell collectors you have an attorney and provide our contact information when appropriate.

You talk with the attorney who will handle the file. The firm keeps a smaller caseload for direct access, local court fluency, and plans built around your actual income and property — not a national intake script.

Call immediately at (817) 335-8880. Whether a filing can stop the sale depends on timing, notice, and court logistics. Do not wait for a perfect document stack if a sale date is posted.

Sometimes. Chapter and case posture control whether dismissal or conversion (for example Chapter 13 to Chapter 7) is available and wise. Ask before you miss plan payments or ignore trustee deadlines.

Common nondischargeable categories include most student loans, recent certain taxes, child support and alimony, and debts from fraud or willful injury when proven. We flag problem debts before you file.

Call (817) 335-8880 or use the free consultation form on this site. An attorney reviews every request. Bring pay stubs, a creditor list, and any lawsuit, garnishment, foreclosure, or SBA papers you have.