Behind on your mortgage? A Texas foreclosure can move in weeks — Chapter 13 can stop it. See how →
Drowning in card & medical debt? Chapter 7 can wipe qualifying unsecured debt — a true fresh start. See how →
Want to keep the house & car? Chapter 13 catches up arrears on a structured, court-protected plan. See how →
SBA loan in default? North Texas business owners — there are defenses and workouts. See how →
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Pros And Cons Of Chapter 13 Bankruptcy

Bankruptcy Relief in Arlington, Texas

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Get clear, practical guidance from a local Arlington bankruptcy attorney

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The Pros And Cons Of Chapter 13 Bankruptcy

Are you struggling to manage your debts and looking for a way to gain control of your financial situation? Chapter 13 bankruptcy might be the solution you need. This legal process allows individuals with a regular income to create a structured repayment plan to gradually pay off their debts over a period of time.

It is essential to have a clear understanding of the advantages and disadvantages of Chapter 13 bankruptcy before making any final decisions. On one hand, it provides a real opportunity to stop foreclosure, keep your property, and create a manageable debt plan. On the other hand, it also requires discipline and a commitment to a repayment schedule that can last several years.

In this guide, the experienced legal team at Machi & Associates, P.C.—the most trusted bankruptcy law firm in Arlington, Texas—explores the pros and cons of Chapter 13 bankruptcy. Our goal is to help you make an informed decision and understand whether it’s the right path forward.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy, also known as a reorganization bankruptcy, is designed for individuals who have a steady income and want to repay all or a portion of their debts. Unlike Chapter 7 bankruptcy, Chapter 13 lets debtors keep their property, including their home and vehicles, so long as they make approved payments based on income and expenses.

This option is particularly beneficial for homeowners facing foreclosure, people behind on car payments, or those with large amounts of non-dischargeable debt like taxes or child support.

Who Qualifies for Chapter 13 Bankruptcy?

To qualify for Chapter 13 bankruptcy:

  • You must have regular and provable monthly income.
  • Your secured and unsecured debts must be under established thresholds.
  • You must have completed credit counseling from an approved agency within the 180 days before filing.

At Machi & Associates, P.C., we evaluate your financial situation to determine your eligibility and propose realistic repayment terms that respect your needs and legal obligations.

Which Debts Can Be Discharged Under Chapter 13?

Chapter 13 can discharge or help manage many types of debt, including:

  • Medical bills
  • Credit card debts
  • Payday loans and personal loans
  • Utility bills
  • Some older tax debts

Certain debts—like student loans, recent tax obligations, child support, and alimony—usually cannot be discharged but may be paid over time through the Chapter 13 plan.

Advantages of Chapter 13 Bankruptcy

  • Save Your Home or Vehicle: Chapter 13 halts foreclosure and allows you to catch up on missed payments over time.
  • Control Over Your Finances: Create a structured plan tailored to your income to eliminate or manage debt effectively.
  • Co-Debtor Protection: A Chapter 13 filing can protect co-signers from collections while the plan is ongoing.
  • Asset Protection: Unlike Chapter 7, you won’t have to liquidate assets to satisfy creditors.
  • Long-Term Debt Strategy: Priority debts like taxes or child support become manageable with structured payments.
  • Single Monthly Payment: Simplifies repayment through one affordable monthly payment to the bankruptcy trustee.

Disadvantages of Chapter 13

  • Length of Plan: You must adhere to a 3–5 year payment plan before debts are discharged.
  • Credit Impact: A Chapter 13 stays on your credit report for up to 7 years.
  • Financial Oversight: Must get court approval for significant new debts or changes during your plan.
  • Limited Loan Access: Access to credit or loans is restricted during your repayment period.
  • Plan Completion Required: Failure to finish your plan could result in dismissal or loss of protections.

Can Chapter 13 Work With Other Legal Situations?

Yes! Many clients at Machi & Associates, P.C. come to us dealing with multiple legal and financial issues—such as physical injuries or pending lawsuits. For example, you may be considering bankruptcy while recovering from a car accident or dealing with rising medical bills. In these cases, our firm is uniquely equipped to assist both your financial needs and your bankruptcy or financial defense case through our Texas personal injury law team.

More importantly, if bankruptcy has become essential due to injury-related job loss or medical debt, we will build a full-circle plan that prioritizes financial healing while helping you maximize any available compensation.

How Machi & Associates Helps You Succeed with Chapter 13

Our approach at Machi & Associates, P.C. sets us apart as Arlington’s most trusted bankruptcy law firm. We provide:

  • Personalized debt assessments and case analysis from a board-certified attorney
  • Custom payment plans aligned with your budget and court requirements
  • Timely court filings and representation at all hearings
  • Exceptional communication so that you never feel confused or ignored
  • Ongoing support if financial changes affect your ability to pay

We understand that Chapter 13 bankruptcy is a personal decision—and a legal process that demands precision. Our team walks with you through every step so that you aren’t just filing your claim, but setting the stage for long-term relief and stability.

Chapter 13 FAQs

Can I pay off Chapter 13 early?

Yes, in many cases, you can pay off your plan early. However, paying early may affect how much debt is erased or leave you liable for additional interest or penalties. Always review this with our team before acting.

What if I miss a payment during my plan?

Missing a single payment isn’t always fatal to your plan. But multiple missed payments may cause dismissal or require a plan modification. If you experience hardship, contact Machi & Associates, P.C. immediately—we may be able to adjust your plan or request a temporary adjustment from the court.

Can I still file for Chapter 13 if I’ve filed Chapter 7 in the past?

Yes. You must wait four years after receiving a Chapter 7 discharge before filing Chapter 13. If you’re unsure whether you qualify, we offer free case reviews and will guide you based on your specific timeline.

Is Chapter 13 Right for You?

While Chapter 13 has notable advantages—particularly for asset protection and structured repayment—it’s not right for everyone. Some people benefit more from Chapter 7 bankruptcy, based on their asset level, current income, and financial goals. Others may need a legal hybrid strategy involving credit negotiation, debt settlement, or even personal injury recovery.

At Machi & Associates, P.C., our Arlington team helps you determine the best course of action with honest, experienced guidance. You’re never rushed or pressured; we want you to make the decision that supports your future—not just your present.

Contact Machi & Associates, P.C. for a Free Chapter 13 Consultation

If you’re living paycheck to paycheck, falling behind on critical bills, or trying desperately to avoid foreclosure, schedule a no-obligation consultation today with Machi & Associates, P.C.. We are proud to be Arlington’s most trusted small-firm bankruptcy and personal injury law office—serving clients with personalized service, direct attorney interaction, and real results.

Whether your issues involve mortgage debt, IRS balances, old medical bills, or injury-related wage loss, our team is here to stand with you and help you build a brighter financial future.

Related Articles

Continue learning with these in-depth guides from our bankruptcy attorneys:

Our Legal Services

Machi Wright & Associates provides experienced legal representation:

Find a Bankruptcy Attorney Near You

Machi Wright & Associates serves clients throughout the Dallas-Fort Worth Metroplex:

Need Help? Talk to a Texas Bankruptcy Attorney

If you have questions about this topic, the attorneys at Machi Wright & Associates can help. We offer free initial consultations and have over 30 years of experience helping North Texas families navigate bankruptcy and debt relief.

Call us today: (817) 335-8880
Office: 1521 N Cooper St, Ste 550, Arlington, TX 76011
Hours: Monday–Friday, 8:30 AM – 5:30 PM

Five-Star Reviews

See Why Clients Trust Machi Wright & Associates

Hear From Those We've Helped

Real people in Arlington and across North Texas trust this firm when debt feels overwhelming.

“Very Pleasant”

“We had a very pleasant experience with MR. Daniel, The whole process went very smoothly !"

Marco Macias

“Excellent”

“Hands down I recommend Daniel and his team. I was so nervous being here but they provided me with so much peace and understanding. "

Antoinette Oliver

“Fantastic Firm”

“Dan Wright helped my company whenever one of our customers had a tricky bankruptcy case."

Mary Palacios

“Legal Dream Team”

“Mr. Daniel Wright was very determined to help us with our case. Thank you!"

Vivian Clarkson

"Caring & Honest"

“I had a great experience at this firm. Everyone was patient and kind."

Claudia

“Highly Recommend”

"We would recommend this firm highly over a large firm for many reasons."

Michael

Take the Next Step

Focused on Fresh Starts. Serving Arlington and North Texas.

Contact Us for a Free Bankruptcy Consultation

Have questions about Chapter 7 or Chapter 13? Ready to talk about your options? Call our Arlington office at (817-335-8880) or fill out the form below to schedule a free, confidential consultation with a bankruptcy attorney.

Nondischargeable Debts in Bankruptcy

Bankruptcy Relief in Arlington, Texas

Your Expert Team

Get clear, practical guidance from a local Arlington bankruptcy attorney

Our Small Firm is Big on Results. With more than 30 years of experience helping regular folks in Arlington, Fort Worth, and all of DFW, Machi Wright & Associates has successfuly represented thousands of your neighbors. Contact us for a FREE consultation.

Get Started Today

Nondischargeable Debts in Bankruptcy

Are you facing overwhelming debt and considering bankruptcy as a way out? For many Texans, bankruptcy can provide powerful relief and a genuine fresh start. However, not all debts are created equal: certain types of debt cannot be wiped away by bankruptcy. These are called nondischargeable debts. Knowing which debts can and cannot be eliminated is a cornerstone of smart decision-making if you’re contemplating a Texas bankruptcy filing.

At Machi & Associates, P.C., Arlington’s most trusted bankruptcy law office, our attorneys work every day with individuals and families just like you—explaining your options, protecting what matters, and helping you move forward with clarity. This guide walks you through the most common nondischargeable debts and answers key questions about bankruptcy exemptions, exceptions, and your best next steps.

What Are Nondischargeable Debts?

Nondischargeable debts are those that generally cannot be eliminated by a bankruptcy discharge. This means that, even after a successful Chapter 7 or Chapter 13 case, you are still legally obligated to pay them. While bankruptcy can address many types of unsecured debts (like credit cards and medical bills), it’s vital to understand any debts that may survive your filing.

Most nondischargeable debts fall into categories defined by federal law, although Texas statutes and court orders may impact your specific case. Below is a detailed explanation of the nine most common types of nondischargeable debt, what exceptions may apply, and how Machi & Associates, P.C. can help you plan effectively.

1. Alimony and Child Support

Domestic support obligations—including alimony and child support—are the most fundamental nondischargeable debts in bankruptcy. These debts are protected because they support vital family needs and are subject to state court enforcement. If you are behind on these payments, bankruptcy can pause garnishments and collection efforts (via the automatic stay), but the debt itself will remain. In Chapter 13 bankruptcy, however, you may be able to structure a plan to pay off arrears over several years rather than face immediate, overwhelming demands.

Machi & Associates, P.C. has helped countless clients develop sustainable Chapter 13 repayment plans to address child support or alimony arrears while preserving their rights and keeping families afloat.

2. Debts from Credit Obtained under Fraudulent Means

If a debt was secured through fraud, false representations, lying on a loan application, or intentionally providing incorrect information, the court may declare that debt nondischargeable. This includes using stolen or false identities, falsely inflating your income, or incurring new debt with the intention of immediately declaring bankruptcy.

Creditors may also object to a discharge if you made significant charges or cash advances just before your bankruptcy. The law empowers them to seek a court ruling that the particular debt should not be wiped out.

Machi & Associates, P.C. can evaluate any questionable credit transactions and advise you on the best timing and strategy for your bankruptcy filing to avoid complicating your case with accusations of fraud.

3. Debts Owed due to Criminal Actions or Lawsuits

Bankruptcy does not erase debt owed for criminal penalties, fines, or court-ordered restitution. This also covers civil judgements arising from intentional wrongdoing. Nondischargeable criminal-related debts include:

  • Embezzlement or larceny (stealing or misusing funds)
  • Willful or malicious injuries to another person or property
  • Causing injury or death while intoxicated (DUI crashes)
  • Fraud or misappropriation at banks or credit unions
  • Investment and securities fraud (stocks, bonds, manipulation)

If you have fines, penalties, or judgments arising from criminal or willful misconduct, these debts survive bankruptcy. However, it is still crucial to list them on your petition so your attorney can advise you strategically and use bankruptcy to address your remaining eligible debts.

4. Certain Taxes Owed to the Federal and State Government

While some old tax debts may be discharged, many are not. Income taxes may only be discharged in bankruptcy if:

  • The tax is from a return filed at least two years before filing bankruptcy
  • The tax debt is at least three years old
  • No fraud or tax evasion was involved

Payroll taxes, sales taxes, and any tax penalties or interest related to recent tax periods generally cannot be eliminated. If you failed to file your tax returns, those debts are not dischargeable. Even in a successful bankruptcy, the IRS and Texas Comptroller may retain liens against your property for unpaid taxes.

Machi & Associates, P.C. is exceptionally skilled at analyzing clients’ tax histories, structuring plans for repaying or challenging tax debts, and coordinating with tax professionals to protect your finances.

5. Fines and Penalties Owed to the Government

Debts owed to federal, state, or local government—including tickets, traffic fines, regulatory penalties, and court-ordered surcharges—are typically nondischargeable. This rule is designed to prevent people from escaping civic financial obligations by filing for bankruptcy.

However, certain tax-related penalties may be eligible—this is a rare exception. Carefully review your unique situation with your attorney at Machi & Associates, P.C. to understand what is possible under both Texas and federal law.

6. Payments Owed to a Pension or Profit-Sharing System

If you owe payments to a pension, retirement system, or profit-sharing plan (such as 401(k) contributions withheld by your employer but not remitted), those debts are not wiped out in bankruptcy. Protecting retirement accounts and ensuring compliance with obligations is viewed as essential for long-term financial security, thus these debts are given special legal status.

Machi & Associates, P.C. understands every aspect of pension-related debt and can help you develop a comprehensive plan for resolving these obligations while addressing dischargeable debts through bankruptcy.

7. Student Loans

Student loan debt, whether federal or private, is typically considered nondischargeable. However, there is a very limited exception—the “undue hardship” provision. If you can demonstrate that repaying your loans would impose a severe, ongoing hardship (beyond normal financial strain), you may petition the court for a hardship discharge. This is very difficult to prove and usually requires a separate legal proceeding.

Our attorneys at Machi & Associates, P.C. will review whether you have a credible undue hardship case and guide you through this complex, uphill process. Even when discharge is denied, bankruptcy may still provide temporary relief, pause collections, and buy you precious time.

8. Debts Not Listed before Bankruptcy Proceedings

You are required to list every debt and creditor on your bankruptcy petition—even those you intend to pay back. Omitting debts (intentionally or accidentally) from your schedules can make them ineligible for discharge, meaning they will continue to haunt you after your bankruptcy is finalized. There are strict time limits for amending debt schedules, and failing to adhere to them can lock you into years of additional financial strain.

List absolutely everything—credit cards, medical bills, personal loans, old collections, judgments, and civil liabilities. If you are unsure whether something qualifies, list it and let Machi & Associates, P.C. review its treatment. Better safe than sorry!

9. Debts from Previous Bankruptcy Proceedings

Any debt previously listed in another bankruptcy—whether you waived your discharge rights, or the court denied a discharge—cannot be discharged in a new bankruptcy case. This provision is intended to prevent filers from repeatedly targeting the same debt again and again.

If you’ve filed for bankruptcy in the past or have ongoing debt from a previous case, bring all related documentation to your consultation. The lawyers at Machi & Associates, P.C. are experienced in reviewing and correcting issues from previous filings, maximizing your relief this time around.

Are There Any Other Nondischargeable Debts?

Certain additional debts may also survive a bankruptcy, including some condominium or homeowners’ association dues, debts for personal injury or death caused by operating a vehicle while intoxicated, new credit incurred close to filing, or marriage property settlement agreements under certain circumstances. Only an exhausted, thorough review of your financial records with a qualified Texas bankruptcy attorney can determine your best path.

Exception to the Rules: Which Nondischargeable Debts Might Still Be Managed?

While most nondischargeable debts cannot be erased, a successful bankruptcy can still help by:

  • Pausing collection activities (automatic stay) on even non-dischargeable debts
  • Giving you space to tackle those debts after eliminating other financial burdens
  • Spreading out overdue payments (especially in Chapter 13 bankruptcy) to make them manageable
  • Sometimes, negotiating a fair payment plan or even a partial settlement with creditors

For some, bankruptcy—in Arlington and across North Texas—is the strategic financial “reset” that makes it possible to keep your house, protect your wages, and provide for your family despite past mistakes or hardship.

What Happens If You Don’t List a Nondischargeable Debt?

If you forget or fail to list a nondischargeable debt, creditors can continue to collect after your bankruptcy concludes. Furthermore, if you attempt to file bankruptcy again to address these debts, you may face multi-year waiting periods (2-8 years, depending on the type of bankruptcy you previously filed).

Your best protection? Total transparency. The bankruptcy team at Machi & Associates, P.C. will help you create a comprehensive debt schedule and safeguard you from costly errors.

Life after Bankruptcy with Nondischargeable Debts

After bankruptcy, most people retain some form of nondischargeable debt. The road to financial recovery means budgeting for these unavoidable bills, living within your means, and using your post-bankruptcy “fresh start” to avoid further financial distress. Machi & Associates, P.C. provides follow-up guidance, budgeting resources, and—when necessary—support in navigating related matters like accident-related settlements, creditor negotiation, or further restructuring.

Why Choose Machi & Associates, P.C. for Your Texas Bankruptcy?

Clients choose Machi & Associates, P.C. for:

  • Over 35 years of Texas bankruptcy experience
  • Personalized, hands-on case management
  • Honest, transparent answers about what debts will be discharged—no hype or false promises
  • Advanced planning for managing nondischargeable debts before, during, and after bankruptcy
  • A one-stop solution for related legal and financial adversity, from personal injury claims to bankruptcy restructures and credit rebuilding

Final Thoughts: Clarity and a Fresh Start Await

While not all debts can be erased, bankruptcy—especially with the right legal team—can still be life-changing. If you’re unsure what debts survive bankruptcy, want to know how to regain control of your finances, or are sick of juggling unmanageable bills, call Machi & Associates, P.C., the most trusted bankruptcy law office in Arlington, Texas. Our compassionate attorneys will answer your questions, build a custom strategy, and guide you through every step of your journey to financial freedom.

Your financial recovery is possible. Start with a no-cost consultation and discover why so many Texans trust Machi & Associates, P.C. to lead them out of debt and into a brighter future.

Related Articles

Continue learning with these in-depth guides from our bankruptcy attorneys:

Our Legal Services

Machi Wright & Associates provides experienced legal representation:

Find a Bankruptcy Attorney Near You

Machi Wright & Associates serves clients throughout the Dallas-Fort Worth Metroplex:

Need Help? Talk to a Texas Bankruptcy Attorney

If you have questions about this topic, the attorneys at Machi Wright & Associates can help. We offer free initial consultations and have over 30 years of experience helping North Texas families navigate bankruptcy and debt relief.

Call us today: (817) 335-8880
Office: 1521 N Cooper St, Ste 550, Arlington, TX 76011
Hours: Monday–Friday, 8:30 AM – 5:30 PM

Five-Star Reviews

See Why Clients Trust Machi Wright & Associates

Hear From Those We've Helped

Real people in Arlington and across North Texas trust this firm when debt feels overwhelming.

“Very Pleasant”

“We had a very pleasant experience with MR. Daniel, The whole process went very smoothly !"

Marco Macias

“Excellent”

“Hands down I recommend Daniel and his team. I was so nervous being here but they provided me with so much peace and understanding. "

Antoinette Oliver

“Fantastic Firm”

“Dan Wright helped my company whenever one of our customers had a tricky bankruptcy case."

Mary Palacios

“Legal Dream Team”

“Mr. Daniel Wright was very determined to help us with our case. Thank you!"

Vivian Clarkson

"Caring & Honest"

“I had a great experience at this firm. Everyone was patient and kind."

Claudia

“Highly Recommend”

"We would recommend this firm highly over a large firm for many reasons."

Michael

Take the Next Step

Focused on Fresh Starts. Serving Arlington and North Texas.

Contact Us for a Free Bankruptcy Consultation

Have questions about Chapter 7 or Chapter 13? Ready to talk about your options? Call our Arlington office at (817-335-8880) or fill out the form below to schedule a free, confidential consultation with a bankruptcy attorney.

How to Rebuild Credit After Bankruptcy

Bankruptcy Relief in Arlington, Texas

Your Expert Team

Get clear, practical guidance from a local Arlington bankruptcy attorney

Our Small Firm is Big on Results. With more than 30 years of experience helping regular folks in Arlington, Fort Worth, and all of DFW, Machi Wright & Associates has successfuly represented thousands of your neighbors. Contact us for a FREE consultation.

Get Started Today

How to Rebuild Credit after Declaring Bankruptcy

Hundreds of thousands of people file for bankruptcy each year to get out from under mounting debt. While declaring bankruptcy solves the immediate problem of not being able to pay your bills, it does have consequences. Bankruptcy remains on your credit report for up to 10 years, which can affect your credit rating and your ability to borrow in the short term. However, with careful planning and smart habits, you can restore your credit—and your peace of mind. Arlington’s most trusted bankruptcy law office, Machi & Associates, P.C., helps clients not only find relief through bankruptcy but also supports rebuilding credit for a true financial fresh start.

Your Credit Score Immediately After Bankruptcy

If you have a good credit score (over 700), filing bankruptcy can drop your credit score by as much as 200 points. However, the impact for most filers—whose scores are already challenged—is smaller, typically around 130 points. Bankruptcy may even boost the score in some cases by clearing out severely past-due balances that keep dragging your rating down. Machi & Associates, P.C. also helps clients who are simultaneously dealing with accident-related settlements or lost income related to accident or illness—contact our legal team for guidance if accident-related debts are a factor in your bankruptcy.

How Bankruptcy Affects Credit Long Term

It’s true bankruptcy can remain on your credit report for up to 10 years, but its impact lessens over time. Lenders and employers will see it, but if you practice responsible money habits, your day-to-day financial life can improve much sooner. Within just a couple years, many clients are able to finance a car, get approved for an apartment, or even buy a home. Smart, proactive steps make all the difference—so begin your recovery as soon as your bankruptcy is final.

7 Steps to Rebuild Credit After Bankruptcy

1. Obtain Secured Credit Cards

Shortly after your bankruptcy discharge, seek out a secured credit card. These cards require a deposit but report to the major credit bureaus. By making regular, on-time payments and keeping your card balance below 30% of your available credit, you demonstrate to lenders that you have rebuilt financial discipline. Machi & Associates, P.C. can recommend reputable secured card options that fit your situation.

2. Make Every Payment On Time

Consistently paying all bills (credit cards, loans, utilities, rent, and even cell phone bills) on time has the single biggest impact on your score. Timely payment history can help offset the presence of a bankruptcy and slowly rebuild your credibility with lenders.

3. Create—and Stick to—A Budget

One of the keys to rebuilding your credit is learning from past mistakes or hardships. Create a realistic monthly budget that includes room for savings. Machi & Associates, P.C. offers referrals to trusted credit counselors and budgeting resources to keep you on the right path.

4. Avoid “Bad” Credit Offers

After bankruptcy, you may get offers for high-interest loans, payday loans, or subprime credit cards that carry excessive fees. Be cautious: these options can trap you in a new cycle of debt and do more harm than good. Instead, pursue secured cards and reputable lenders with reasonable terms.

5. Review Your Credit Report Regularly

Obtain a free credit report from all three bureaus at least once a year to ensure there are no errors, and that debts discharged in bankruptcy are marked as “included in bankruptcy” or “discharged.” If not, dispute inaccuracies promptly—these mistakes can drag your score lower unnecessarily.

6. Consider a Credit-Builder Loan or Secured Installment Loan

Some banks and credit unions offer small loans designed specifically for people rebuilding credit. The payments go into a savings account and are reported to credit bureaus. This adds positive payment history and improves your credit mix, which is another scoring factor.

7. Maintain Stable Employment and Address All Old Debts

Stable income and a consistent employment record help as you apply for future loans and reflect positively to creditors. Make sure all old debts that survived bankruptcy (such as student loans or certain tax debts) are paid as agreed to further rebuild your responsible history.

Reestablishing Your Financial Life After Bankruptcy

Rebuilding credit is not only about credit cards—it’s a holistic process. You’ll need to adjust your outlook on spending, establish regular savings habits, and sometimes delay big purchases. By demonstrating responsible use of new credit and avoiding overspending, you’ll not only boost your score but also regain confidence in your financial future. Machi & Associates, P.C. coaches clients on developing a comprehensive, customized recovery plan—and, if challenges arise again in the future, we’re available for ongoing consultations.

When Bankruptcy and Medical Bills or Job Loss Are Connected

Many families face bankruptcy due to medical bills after an accident or unexpected job loss. If your situation involves both legal areas, Machi & Associates, P.C. can help you coordinate your bankruptcy or financial defense claim and bankruptcy relief, protecting settlements and income while you restore your credit and rebuild.

Why Choose Machi & Associates, P.C. for Credit Rebuilding Advice?

Our legal team is not only committed to guiding you through declaring bankruptcy but is with you every step after, helping you repair your finances, credit, and confidence. As Arlington’s most trusted law firm for bankruptcy and debt relief, Machi & Associates, P.C. offers personalized, practical strategies for your recovery, with a proven track record of success for Texans just like you.

Questions About Bankruptcy, Recovery, and Credit? Contact Us Today.

Bankruptcy truly can be a fresh start if you take positive action as soon as the process is complete. For personalized advice, ongoing guidance, and access to the best resources, let Machi & Associates, P.C. be your advocate and advisor. If you’re facing debt and considering your options, or want to better understand how bankruptcy could affect your credit and your life, call us for a free, no-pressure consultation. Your future can be brighter with the right support.

Related Articles

Continue learning with these in-depth guides from our bankruptcy attorneys:

Our Legal Services

Machi Wright & Associates provides experienced legal representation:

Find a Bankruptcy Attorney Near You

Machi Wright & Associates serves clients throughout the Dallas-Fort Worth Metroplex:

Need Help? Talk to a Texas Bankruptcy Attorney

If you have questions about this topic, the attorneys at Machi Wright & Associates can help. We offer free initial consultations and have over 30 years of experience helping North Texas families navigate bankruptcy and debt relief.

Call us today: (817) 335-8880
Office: 1521 N Cooper St, Ste 550, Arlington, TX 76011
Hours: Monday–Friday, 8:30 AM – 5:30 PM

Five-Star Reviews

See Why Clients Trust Machi Wright & Associates

Hear From Those We've Helped

Real people in Arlington and across North Texas trust this firm when debt feels overwhelming.

“Very Pleasant”

“We had a very pleasant experience with MR. Daniel, The whole process went very smoothly !"

Marco Macias

“Excellent”

“Hands down I recommend Daniel and his team. I was so nervous being here but they provided me with so much peace and understanding. "

Antoinette Oliver

“Fantastic Firm”

“Dan Wright helped my company whenever one of our customers had a tricky bankruptcy case."

Mary Palacios

“Legal Dream Team”

“Mr. Daniel Wright was very determined to help us with our case. Thank you!"

Vivian Clarkson

"Caring & Honest"

“I had a great experience at this firm. Everyone was patient and kind."

Claudia

“Highly Recommend”

"We would recommend this firm highly over a large firm for many reasons."

Michael

Take the Next Step

Focused on Fresh Starts. Serving Arlington and North Texas.

Contact Us for a Free Bankruptcy Consultation

Have questions about Chapter 7 or Chapter 13? Ready to talk about your options? Call our Arlington office at (817-335-8880) or fill out the form below to schedule a free, confidential consultation with a bankruptcy attorney.

How to Overcome Social Security Disability Claims Challenges

Bankruptcy Relief in Arlington, Texas

Your Expert Team

Get clear, practical guidance from a local Arlington bankruptcy attorney

Our Small Firm is Big on Results. With more than 30 years of experience helping regular folks in Arlington, Fort Worth, and all of DFW, Machi Wright & Associates has successfuly represented thousands of your neighbors. Contact us for a FREE consultation.

Get Started Today

How to Overcome Social Security Disability Claims Challenges

Are you facing challenges in your Social Security Disability claim? Don’t worry, you’re not alone. Navigating the complexities of the social security system can be overwhelming, leaving many individuals feeling frustrated and defeated. Stay positive! There are several effective strategies you can use to overcome the hurdles and increase your chances of getting your disability claim approved. 

From understanding the common reasons for denial to learning how to gather strong medical evidence, we will provide you with the tools and knowledge you need to strengthen your case. Getting the right advice and guidance from a Social Security Claims lawyer will make navigating the intricate world of social security disability claims much easier. This blog will explain how to change your denial into approval so that you can receive the benefits you deserve.

Strategies To Strengthen Your Disability Claim

While the Social Security Disability process may seem daunting, there are strategies you can employ to strengthen your claim and improve your chances of approval. By taking proactive steps and gathering strong supporting evidence, you can present a compelling case to the Social Security Administration (SSA).

  • One of the most vital strategies is to seek regular medical treatment and maintain consistent medical records. The SSA places significant weight on medical evidence, so it is crucial to ensure your medical records accurately reflect the severity and impact of your condition. Regular visits to healthcare professionals, adherence to prescribed treatments, and thorough documentation of symptoms can help establish the credibility of your claim.
  • In addition to medical records, obtaining supportive statements from healthcare providers can significantly strengthen your case. These statements should outline the specific limitations and restrictions imposed by your medical condition and emphasize how they prevent you from performing substantial gainful activity.
  • It is also crucial to gather non-medical evidence to support your claim. This can include statements from friends, family, or colleagues who have observed the impact of your condition on your daily life and ability to work. Provide detailed descriptions of how your condition affects your ability to perform tasks, such as standing, walking, lifting, or concentrating.
  • Lastly, consider consulting with a disability attorney or advocate who specializes in Social Security Disability claims. These professionals have in-depth knowledge of the process and can guide you through the complexities of the system. They can help you gather the necessary evidence, prepare your case, and represent you during the appeals process if needed.

By implementing these strategies, you can significantly strengthen your disability claim and increase your chances of approval. Remember, a well-prepared and thoroughly documented case is key to overcoming the challenges of the Social Security Disability system.

The Denial Process And Common Reasons For Denial

Receiving a denial letter from the SSA can be disheartening, but it doesn’t signal the end of your journey. Understanding the denial process and the common reasons for denial can help you identify where your claim may have fallen short and take appropriate action.

The SSA typically denies disability claims for a few primary reasons:

  1. Lack of sufficient medical evidence. If your medical records do not clearly demonstrate the severity and impact of your condition, the SSA may deem your disability claim insufficient.
  2. Failure to meet the technical requirements set by the SSA. This includes income and work history requirements. If you earn too much income or have not accumulated enough work credits, your claim may be denied.
  3. A belief that the applicant can perform other types of work. They take into account such factors as age, education, and past work experience. This determination is based on the SSA’s evaluation of an applicant’s residual functional capacity (RFC) and vocational factors.

To increase your chances of approval, it is crucial to address the specific reasons for denial outlined in your denial letter. By understanding the SSA’s rationale, you can develop strategies to strengthen your claim and provide the necessary evidence to support your case.

Overcoming Common Challenges In Disability Hearings

Disability hearings play a critical role in the appeals process for Social Security Disability claims. It is during these hearings that you have the opportunity to present your case, provide testimony, and present additional evidence to support your claim. However, disability hearings can present their own set of challenges. Here are some strategies to overcome common challenges in disability hearings:

  • Be prepared – Review your case file carefully, including all medical records, opinions, and supporting evidence. Learn the details of your case and be ready to answer questions.
  • Develop a strategy – Work with your disability attorney to develop a hearing strategy. Plan how you will present your case. Prepare appropriate responses to potential challenges from the administrative law judge.
  • Testify clearly and concisely – When giving testimony, be clear and concise in describing your symptoms, limitations, and how they make you unable to work. Don’t exaggerate or understate. Stick to the facts and be honest.
  • Listen to questions carefully – Listen carefully to questions from the administrative law judge and take your time answering them. You need to give accurate and relevant information to support your case, so ask for clarification if you don’t understand a question.
  • Submit additional evidence – If you have gathered additional evidence since your initial application, such as updated medical records or expert opinions, submit them during the hearing. This can strengthen your case and provide the administrative law judge with more recent and comprehensive information.
  • Keep calm and composed – Disability hearings can be stressful, but keep calm and composed. Answer questions confidently, and don’t get defensive or argumentative. You should present your case in a clear, respectful way.

The Importance Of Professional Representation

The importance of professional representation in Social Security Disability claims cannot be overstated. Navigating the system on your own can be overwhelming, so it’s crucial to seek help. Disability attorneys are uniquely qualified to handle these types of claims and have extensive knowledge of the process. They can guide you through each step, from the initial application to the appeals process. Some of the key benefits they offer are their ability to:

  • Navigate complex processes
  • Improve your chances of approval 
  • Provide clarification on eligibility
  • Assist in appeals and denials
  • Argue your case before an administrative law judge 
  • Make the process more efficient
  • Act as a liaison between you and the SSA
  • Apply case law and precedents
  • Maximize your benefits
  • Give you peace of mind

In the event of a denial, professional representation becomes even more crucial. Disability attorneys have the knowledge and experience to navigate the appeals process effectively. They can gather additional evidence, prepare you for hearings, and present your case to the administrative law judge.

Call Machi Wright & Associates For A Complimentary Legal Consult

If you have become disabled and are no longer able to work, you are entitled to collect compensation from Social Security. At Machi Wright & Associates, we have over 20+ years experience assisting clients with Social Security disability claims. Whether you are filing for the first time, or your claim has been denied, we are committed to helping you receive the benefits you deserve. Our team knows how time-consuming and frustrating it can be to deal with the Social Security Administration, and when you are unable to work, time is of the essence. Don’t waste anymore time! Reach out to our offices today to schedule a free consultation and discover how we can help.

Related Articles

Continue learning with these in-depth guides from our bankruptcy attorneys:

Our Legal Services

Machi Wright & Associates provides experienced legal representation:

Need Help? Talk to a Texas Bankruptcy Attorney

If you have questions about this topic, the attorneys at Machi Wright & Associates can help. We offer free initial consultations and have over 30 years of experience helping North Texas families navigate bankruptcy and debt relief.

Call us today: (817) 335-8880
Office: 1521 N Cooper St, Ste 550, Arlington, TX 76011
Hours: Monday–Friday, 8:30 AM – 5:30 PM

Five-Star Reviews

See Why Clients Trust Machi Wright & Associates

Hear From Those We've Helped

Real people in Arlington and across North Texas trust this firm when debt feels overwhelming.

“Very Pleasant”

“We had a very pleasant experience with MR. Daniel, The whole process went very smoothly !"

Marco Macias

“Excellent”

“Hands down I recommend Daniel and his team. I was so nervous being here but they provided me with so much peace and understanding. "

Antoinette Oliver

“Fantastic Firm”

“Dan Wright helped my company whenever one of our customers had a tricky bankruptcy case."

Mary Palacios

“Legal Dream Team”

“Mr. Daniel Wright was very determined to help us with our case. Thank you!"

Vivian Clarkson

"Caring & Honest"

“I had a great experience at this firm. Everyone was patient and kind."

Claudia

“Highly Recommend”

"We would recommend this firm highly over a large firm for many reasons."

Michael

Take the Next Step

Focused on Fresh Starts. Serving Arlington and North Texas.

Contact Us for a Free Bankruptcy Consultation

Have questions about Chapter 7 or Chapter 13? Ready to talk about your options? Call our Arlington office at (817-335-8880) or fill out the form below to schedule a free, confidential consultation with a bankruptcy attorney.

How to Protect Your Assets in Chapter 7 Bankruptcy

Bankruptcy Relief in Arlington, Texas

Your Expert Team

Get clear, practical guidance from a local Arlington bankruptcy attorney

Our Small Firm is Big on Results. With more than 30 years of experience helping regular folks in Arlington, Fort Worth, and all of DFW, Machi Wright & Associates has successfuly represented thousands of your neighbors. Contact us for a FREE consultation.

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How To Not Lose Everything You Own During Chapter 7 Bankruptcy

If you are confronted with the daunting prospect of Chapter 7 bankruptcy, it doesn’t mean that you’re a lazy or irresponsible person. Most people who file have worked hard to build a stable life, accumulated valuable assets, and tried to manage their finances responsibly. Unfortunately, circumstances like sudden illness, job loss, economic downturns, or unexpected life changes can leave even the most diligent Texans facing overwhelming debt.

No matter why you’re considering Chapter 7 bankruptcy, it’s natural to worry about losing everything you own—your home, vehicles, retirement savings, or personal belongings. Fortunately, the process is designed to help you get a fresh start, not to leave you destitute. Machi Wright & Associates, Arlington’s trusted bankruptcy law firm, has helped countless Texas families protect their most valued assets through the Chapter 7 process. Let’s break down the facts and myths so you can confidently move forward.

Understanding Chapter 7 Bankruptcy in Texas

Chapter 7 bankruptcy is sometimes called “liquidation bankruptcy.” In this process, a court-appointed trustee collects any non-exempt assets and may sell them to pay creditors. However, most Chapter 7 cases in Texas are “no-asset cases”, meaning filers keep all their property because it’s protected by state or federal exemptions.
Texas has some of the most debtor-friendly exemption laws in the nation, and most people keep their home, car, retirement accounts, and all basic household goods. Knowing what’s protected—and how to maximize those protections—requires careful planning. Machi Wright & Associates can help tailor an asset-protection strategy for your unique situation.

Key Texas Bankruptcy Exemptions

When you file for Chapter 7 bankruptcy, everything you own becomes part of your “bankruptcy estate.” Texas and federal law then allow you to protect certain types of property, up to specific dollar amounts. Here are the primary Texas exemptions—and why so many Texans choose the state list over the federal list:

  • Homestead Exemption: Unlimited value (with acreage limits). In urban areas, you can keep your primary residence if it’s on up to 10 acres; in rural areas, up to 100 acres (200 acres for families). This protects most Texas homes, regardless of value or equity.
  • Motor Vehicle: One vehicle per licensed household member (and for household members without a license who rely on someone else for transportation). The value is unlimited but capped under the personal property aggregate limit.
  • Personal Property: Up to $50,000 for a single filer and $100,000 for families, including household goods, clothing, furniture, electronics, jewelry, pets, firearms, and “tools of the trade”.
  • Retirement Accounts: All qualified retirement plans, including IRAs, Roth IRAs, 401(k)s, teachers’ and government pensions, are fully exempt.
  • Government Benefits: Social Security, unemployment, veterans, disability, and life/health/accident insurance proceeds are exempt.

Some specialized exemptions cover insurance policies, burial plots, and certain unpaid commissions. Texas, unlike many other states, does not offer a “wildcard” exemption to protect property of your choosing, so careful asset-by-asset analysis is important.

Federal vs. Texas Exemptions: Which Should You Choose?

Texas allows filers to choose between state and federal exemptions—but only one system, not a mix. Most homeowners benefit from the generous Texas homestead exemption, while renters or those with significant cash may favor the federal wildcard. Machi Wright & Associates will review your assets and goals to ensure maximum protection. Review how each set applies to your property before filing for bankruptcy in Texas with our team’s help.

Protecting Non-Exempt Assets the Legal Way

Not every asset is exempt. Investments, high-value collections, second homes, recreational vehicles, or luxury goods might exceed the allowable exemption limits. Machi Wright & Associates helps clients avoid common, costly mistakes like transferring assets to family or friends, which courts see as fraudulent and can jeopardize your entire case.

  • Don’t hide, give away, or sell assets for less than fair value before filing.
  • Always disclose everything you own on your bankruptcy schedules.
  • If you have non-exempt assets, our attorneys can help you plan ahead—sometimes converting non-exempt assets into exempt ones or exploring alternatives like Chapter 13 bankruptcy.

Asset appraisal must be accurate and fair. We work with appraisers if needed and explain how each asset will be valued by the trustee.

The Chapter 7 Bankruptcy Process—Step by Step

Machi Wright & Associates guides Arlington and DFW clients through every phase of the process:

  1. Comprehensive review of your goals, debts, assets, and income.
  2. Identify all exempt and non-exempt properties, choose the best exemption system, and develop an asset-protection strategy.
  3. File your bankruptcy petition and schedules—a detailed list of all property, creditors, and income sources.
  4. The court appoints a bankruptcy trustee to review your estate for non-exempt assets. Most clients lose nothing—but in rare cases, non-exempt items like a vacation home or valuable collection may be sold to pay creditors.
  5. You attend a meeting of creditors; your attorney handles communications with the trustee.
  6. Your qualifying debts are discharged, and your exempt property is safe. You get a fresh start and can rebuild your financial future.

Why Most Texans Keep Everything They Own in Chapter 7

Because Texas bankruptcy exemptions are so generous, the vast majority of Chapter 7 bankruptcies in Texas are “no-asset” cases—meaning the trustee does not sell any of your property. Filers keep their home, one car per driver, all essential household items, retirement accounts, and tools of the trade, provided they fall within the exemption limits. A sound legal strategy and attention to detail are essential. Machi Wright & Associates ensures that you know your rights and remain within legal bounds for exemption planning.

When Chapter 13 Bankruptcy May Be a Better Fit

If your assets exceed Texas exemption limits, or if you’re behind on your mortgage or car payments and want to keep your property, Chapter 13 bankruptcy may be advantageous. Chapter 13 lets you protect non-exempt property while reorganizing your debts into a manageable payment plan. Visit our Texas bankruptcy information page to learn more about how Chapter 13 can be a lifeline for homeowners, business owners, and those with complex asset structures.

Common Myths and Mistakes About Chapter 7 Bankruptcy in Texas

  • Myth: “I’ll lose my home if I file for bankruptcy.”
    Reality: Most Texas filers keep their homestead, regardless of value, under the unlimited exemption—as long as they’re current on the mortgage and within acreage limits.
  • Myth: “I’ll have to sell my car.”
    Reality: Nearly every Texan is able to keep at least one car, even if it’s high-value, if they can remain current on the auto loan and it falls within the personal property exemption cap.
  • Myth: “I’d better transfer my assets to friends before filing.”
    Reality: Such transfers are usually considered fraudulent and can cost you exemptions or even cause your bankruptcy to be denied.
  • Myth: “My retirement is at risk.”
    Reality: Qualified retirement plans (401(k), IRA, pensions) are fully protected under both federal and Texas exemption laws.

Why Choose Machi Wright & Associates for Chapter 7 Bankruptcy?

Selecting an experienced, attentive, and ethical bankruptcy law firm is your strongest defense against undue asset loss. Machi Wright & Associates is a trusted name in North Texas for a reason:

  • Decades of experience navigating Texas’ complex bankruptcy process and court system.
  • Personalized asset-review and exemption-strategy for each client.
  • Regular communication and education before, during, and after your bankruptcy—for peace of mind at every step.
  • Proven results helping Texans keep homes, vehicles, retirement accounts, and family treasures.
  • Comprehensive support, including guidance on the best path for your unique debt circumstances. If your situation relates to a personal injury or unexpected crisis, see our Arlington personal injury law services.

Empower Your Fresh Start—Book a Free Consultation Today

Legal advice can make all the difference between losing or keeping your most important possessions. Machi Wright & Associates offers a no-cost, no-obligation case evaluation. Our bankruptcy attorneys will answer all your questions about exemptions, non-exempt assets, and the steps you can take right now to protect your home, car, retirement, and dignity during bankruptcy.

Don’t face this challenge alone—contact Machi Wright & Associates, Arlington’s leading bankruptcy and asset protection law firm, and take the first step toward a brighter financial future. Learn more about all your options—including both bankruptcy solutions in Texas and strategic debt alternatives—by scheduling your appointment today.

Related Articles

Continue learning with these in-depth guides from our bankruptcy attorneys:

Our Legal Services

Machi Wright & Associates provides experienced legal representation:

Find a Bankruptcy Attorney Near You

Machi Wright & Associates serves clients throughout the Dallas-Fort Worth Metroplex:

Need Help? Talk to a Texas Bankruptcy Attorney

If you have questions about this topic, the attorneys at Machi Wright & Associates can help. We offer free initial consultations and have over 30 years of experience helping North Texas families navigate bankruptcy and debt relief.

Call us today: (817) 335-8880
Office: 1521 N Cooper St, Ste 550, Arlington, TX 76011
Hours: Monday–Friday, 8:30 AM – 5:30 PM

Five-Star Reviews

See Why Clients Trust Machi Wright & Associates

Hear From Those We've Helped

Real people in Arlington and across North Texas trust this firm when debt feels overwhelming.

“Very Pleasant”

“We had a very pleasant experience with MR. Daniel, The whole process went very smoothly !"

Marco Macias

“Excellent”

“Hands down I recommend Daniel and his team. I was so nervous being here but they provided me with so much peace and understanding. "

Antoinette Oliver

“Fantastic Firm”

“Dan Wright helped my company whenever one of our customers had a tricky bankruptcy case."

Mary Palacios

“Legal Dream Team”

“Mr. Daniel Wright was very determined to help us with our case. Thank you!"

Vivian Clarkson

"Caring & Honest"

“I had a great experience at this firm. Everyone was patient and kind."

Claudia

“Highly Recommend”

"We would recommend this firm highly over a large firm for many reasons."

Michael

Take the Next Step

Focused on Fresh Starts. Serving Arlington and North Texas.

Contact Us for a Free Bankruptcy Consultation

Have questions about Chapter 7 or Chapter 13? Ready to talk about your options? Call our Arlington office at (817-335-8880) or fill out the form below to schedule a free, confidential consultation with a bankruptcy attorney.

How To Make The Most Of A Free Legal Consultation

Bankruptcy Relief in Arlington, Texas

Your Expert Team

Get clear, practical guidance from a local Arlington bankruptcy attorney

Our Small Firm is Big on Results. With more than 30 years of experience helping regular folks in Arlington, Fort Worth, and all of DFW, Machi Wright & Associates has successfuly represented thousands of your neighbors. Contact us for a FREE consultation.

Get Started Today

How To Make The Most Of A Free Legal Consultation

If you find yourself at the center of a civil or criminal legal battle, the first thing you should do is consult with a lawyer. Besides the evidence and facts surrounding your case, having the right attorney by your side is arguably the single most important factor in determining the outcome. To emphasize this point, consider situations in which competent attorneys were able to help individuals escape serious legal situations, whether or not the individual was at fault, or alternatively, situations in which a weak attorney made matters worse for the client and resulted in the client losing their case, forfeiting large sums of money, or, in some cases, even going to prison. 

Your case’s outcome can swing dramatically one way or the other  depending on which lawyer you hire to represent you. The significance of hiring the right attorney for your case cannot be overstated!

A good place to start is to ask friends and family members for a recommendation or do an online search for attorneys in your area. The vast majority of law firms provide free initial consultations, giving you the opportunity to determine if their services are in line with your needs. When you have a shortlist of potential attorneys, it is time to get in touch with them by phone or in person to see if they are a good fit for you and your case. With so much at stake, you owe it to yourself to hire the best attorney for your case. To make the best decision, prepare for this meeting by doing your research ahead of time and understanding what to expect during your consultation.

What Is The Purpose Of An Initial Consultation?

The purpose of the initial consultation is to get a sense of how the lawyer will handle your case. This is an opportunity for you to ask questions and learn about the attorney and the services they offer. You should also take advantage of this time to determine whether you like the attorney and their staff and whether they are a good fit for you. 

Think of it as something akin to a job interview or speed dating: you have a short window of time to decide whether or not to hire the attorney for your case and/or schedule another meeting. But just like in the dating world, if you are interested in an attorney, that does not mean they will be interested in representing you. Consequently, it is critical to consider how you can present your case in a manner that is advantageous to both parties involved. You should keep in mind that it will be a free consultation, so you will only have less than 30 minutes to discuss everything, so make the most of it. 

Expect the lawyer to ask you questions about your case to help them understand the facts and circumstances involved. Your lawyer will also need to understand your goals and what you hope to accomplish with the case, as well as your expectations and concerns.  You should be ready to provide your attorney with a detailed account of the pertinent details of your case and anticipate that he or she will inquire about it in order to gain a deeper understanding. It is essential to be truthful with your attorney, and you have the right to expect the same.

It is never a good idea to conceal facts about your case from your attorney, since doing so will only increase complications and put your case at risk. Their role is to counsel you on how to handle your case, provide an honest assessment of your situation, and assist you in determining the most effective course of action, rather than pass judgment on you.  

What Should You Look For In A Personal Injury Lawyer? 

What should you be looking for in a personal injury lawyer? Well, that depends on what you want. In many ways, it’s a matter of personal preference, but much also depends on a variety of other factors. 

Some people might prefer a lawyer who is outgoing, while others like a lawyer who is more subdued. Some people like a lawyer who is aggressive, while others like a lawyer who is more compassionate, the same way some people prefer pitbulls to golden retrievers. A lot depends on the character of the lawyer and how you feel about them, but you should also consider their experience, their reputation, and the type of case you have to effectively evaluate whether they are the right fit for you. 

Although it is helpful if you have a good rapport with your lawyer, it is important to remember that this is not a requirement for hiring a competent attorney. While you may find one lawyer particularly offensive or intimidating, that does not mean they are not competent in their field. In fact, they may be the perfect lawyer for your situation. 

As a lawyer, assertiveness can be a significant asset, despite the fact that it is not always regarded as a desirable quality in general. Ask yourself which you would rather send into a room on your behalf to negotiate with an insurance adjuster or opposing counsel. If you are looking for an attorney, you probably want one who is not afraid to make waves and do whatever it takes to protect your interests, even if that means being a little confrontational sometimes. 

On the other hand, if you have a case that winds up going to trial, you might prefer a charismatic lawyer who possesses excellent communication skills, who can win a jury  over, or who is able to put them at ease and help portray you and your case in a favorable light. 

It is tempting to hire a lawyer based on how well you get along with him or her, but at the end of the day, it is more important to find someone who can get you the best possible result in your case, whether through a settlement or a court ruling.  

Legal Fees and Payment Options

Knowing the cost of legal services is crucial. The attorney will likely outline their pricing structure and payment choices during your free session.  Fee possibilities include hourly, flat, and contingency. 

With an hourly fee, the lawyer will charge you a set amount per hour. It is important to understand not only the hourly rate but also how many hours the lawyer expects to spend on your case and what the total cost will be. It is often difficult to estimate the total cost without knowing the number of hours the lawyer will spend working on your case. Depending on the attorney’s experience and the complexity of your situation, this number can vary from a few hundred dollars to tens of thousands of dollars.

A flat fee is a set amount of money that the lawyer will charge for the entirety of your case. The advantage of this payment method is that you know exactly how much your case will cost, but the disadvantage is that this fee is usually required to be paid upfront.. 

A contingency fee is an agreement where the lawyer receives a percentage of the amount of your settlement or a court award. The percentage will vary depending on the lawyer, so it’s important to ask about this when you speak with potential lawyers. This also offers a good comparison point when evaluating different attorneys. 

Knowing fee structures and payment alternatives will help you choose an affordable attorney and payment plan. Attorneys may accept credit cards or payment plans. You must consider these choices throughout your appointment to guarantee you can afford legal services.

How do I make a decision and choose the right attorney?

After your free consultation, take some time to evaluate the experience and consider factors such as communication, experience, and cost. Reflect on whether the attorney’s approach aligns with your legal needs and if you feel confident in their ability to represent you effectively. Trust your instincts and choose the attorney who best fits your requirements. 

Before your consultation, write down questions to ask your lawyer.  You should also think about your goals and what you want to accomplish. Here is a list of questions to consider when speaking with potential attorneys:

Experience:

  • How long have you been practicing law?
  • What is your experience in handling cases similar to mine?
  • Do you focus on a particular area of the law?
  • Have you achieved any notable successes or settlements in cases like mine?

Case Assessment:

  • What is your initial assessment of my case?
  • What are the potential strengths and weaknesses of my case?
  • What legal strategies do you recommend for my situation?
  • What are the potential outcomes or risks involved?

Communication and Availability:

  • How do you prefer to communicate with clients? (phone, email, in-person meetings)
  • How quickly can I expect a response to my inquiries?
  • Will you personally handle my case, or will it be delegated to other members of your team?

Legal Fees and Billing:

  • What is your fee structure? (hourly rate, contingency fee, flat fee)
  • Are there any additional costs or expenses I should be aware of?
  • Can you provide an estimate of the total cost for handling my case?
  • Do you offer any payment plans or alternative fee arrangements?

Case Management:

  • How do you typically approach cases like mine?
  • What is your strategy for negotiation, settlement, or litigation?
  • How long do you anticipate my case will take to resolve?
  • Will you keep me updated on the progress of my case?  

Remember, these are just suggested questions, and you should tailor them to your specific situation. It’s important to have a productive and open conversation with the attorney to ensure they are the right fit for your legal needs. Ultimately, a large part of an attorney’s job is to be persuasive. If they are unable to convince you of their ability to successfully represent you, they may not be the right fit for you. 

To Set Up A Free Legal Consultation, Call Machi Wright & Associates

Are you in need of a personal injury lawyer due to an accident caused by someone else’s carelessness? If you’re searching for a Texas-based personal injury attorney, look no further than Machi Wright & Associates. Our team has a proven track record of successfully securing substantial compensation for our clients. With over 25 years of experience and unwavering dedication, we are here to listen to you and address any concerns or inquiries you may have. We will diligently gather all the necessary evidence and employ every possible strategy to ensure that you receive the rightful compensation you deserve! Take advantage of our free consultation today and start your path to financial recovery.  

Related Articles

Continue learning with these in-depth guides from our bankruptcy attorneys:

Our Legal Services

Machi Wright & Associates provides experienced legal representation:

Find a Bankruptcy Attorney Near You

Machi Wright & Associates serves clients throughout the Dallas-Fort Worth Metroplex:

Need Help? Talk to a Texas Bankruptcy Attorney

If you have questions about this topic, the attorneys at Machi Wright & Associates can help. We offer free initial consultations and have over 30 years of experience helping North Texas families navigate bankruptcy and debt relief.

Call us today: (817) 335-8880
Office: 1521 N Cooper St, Ste 550, Arlington, TX 76011
Hours: Monday–Friday, 8:30 AM – 5:30 PM

Five-Star Reviews

See Why Clients Trust Machi Wright & Associates

Hear From Those We've Helped

Real people in Arlington and across North Texas trust this firm when debt feels overwhelming.

“Very Pleasant”

“We had a very pleasant experience with MR. Daniel, The whole process went very smoothly !"

Marco Macias

“Excellent”

“Hands down I recommend Daniel and his team. I was so nervous being here but they provided me with so much peace and understanding. "

Antoinette Oliver

“Fantastic Firm”

“Dan Wright helped my company whenever one of our customers had a tricky bankruptcy case."

Mary Palacios

“Legal Dream Team”

“Mr. Daniel Wright was very determined to help us with our case. Thank you!"

Vivian Clarkson

"Caring & Honest"

“I had a great experience at this firm. Everyone was patient and kind."

Claudia

“Highly Recommend”

"We would recommend this firm highly over a large firm for many reasons."

Michael

Take the Next Step

Focused on Fresh Starts. Serving Arlington and North Texas.

Contact Us for a Free Bankruptcy Consultation

Have questions about Chapter 7 or Chapter 13? Ready to talk about your options? Call our Arlington office at (817-335-8880) or fill out the form below to schedule a free, confidential consultation with a bankruptcy attorney.

Give This A Go Before You File For Bankruptcy!

Bankruptcy Relief in Arlington, Texas

Your Expert Team

Get clear, practical guidance from a local Arlington bankruptcy attorney

Our Small Firm is Big on Results. With more than 30 years of experience helping regular folks in Arlington, Fort Worth, and all of DFW, Machi Wright & Associates has successfuly represented thousands of your neighbors. Contact us for a FREE consultation.

Get Started Today

Give This A Go Before You File For Bankruptcy!

You might have heard the expression, “Desperate times call for desperate measures.” If your financial situation is on the brink of bankruptcy, then these are certainly desperate times—or at least, you might think they are.

You might be looking at your situation and thinking that there is no way to avoid bankruptcy—there’s not enough money to pay the bills, and creditors are calling day and night, threatening to take action when they don’t receive payment. You might think that bankruptcy is your best choice for getting your debt under control, and you might be right. However, before pursuing bankruptcy, it’s essential to know there are alternatives and steps you should try first. Machi Wright & Associates recommends exhausting every reasonable option before making the important decision to file.

The Importance of Exploring Alternatives to Bankruptcy in Texas

Bankruptcy is a significant legal and financial step that cannot be reversed, and its impact on your credit can last for up to a decade. Before entering bankruptcy, seek advice and information about other methods for regaining financial stability. At Machi Wright & Associates, our team has helped thousands of North Texas individuals and families explore options like credit counseling, debt management, reducing expenditures, selling non-essential assets, and negotiating directly with creditors—often helping clients avoid bankruptcy entirely. For those where filing is the best step, we’re always available as your reliable advocate and resource. Learn more about Texas bankruptcy laws and your alternatives here.

Tried & True Practical Strategies for Getting Out Of Debt

Any debt rescue plan—from financial counseling to court-ordered debt discharge—relies on two sides of the equation: how much you make (income) and how much you spend (expenses). Here are proven strategies that the team at Machi & Associates, P.C. encourages all clients to try before making the final decision to file for bankruptcy:

Ways To Increase Your Income Before Filing for Bankruptcy

  • Side Hustles & Part-Time Jobs: Whether you take on work in your field or explore delivery, rideshare, music lessons, childcare, or handyman work, every extra dollar you bring in can help you chip away at your debt.
  • Freelance Your Skills: Put your unique skills to work—offer tutoring, design services, yard work, virtual assistance, or other freelance services. Platforms and local groups make it easier than ever to connect with clients.
  • Rent Out Extra Space: If you own your home and have an extra bedroom, consider renting it to a tenant, student, or even short-term guests. If you have garage or storage space, lease it for parking or storage.
  • Explore Passive Income: Generating income from investments or real estate might take time, but dividends, renting out land, or even small-scale investing in local properties can add another income stream.
  • Sell Unnecessary Assets: Unused exercise equipment, furniture, electronics, or collectibles can generate immediate cash and also declutter your home.

Cutting Costs: Proven Ways To Lower Spending and Minimize Debt Before Bankruptcy

  • Track Every Dollar: Use a budget app or spreadsheet to review where your money really goes. Tiny subscriptions, impulse purchases, or unused memberships can add up to hundreds of dollars a month.
  • Cook at Home & Meal Plan: Avoiding restaurants and making food at home can cut food costs in half and improve your health. Shop at warehouse or discount grocers when possible.
  • Cut the Cord: Swap cable for streaming, free public TV, or even eliminate TV altogether for a time to save.
  • Refinance or Consolidate Debt: If you qualify, consolidating debts can lower your monthly payment or interest rates, making your debt easier to manage.
  • Downsize: Move to a smaller home or apartment. Sell or swap your vehicle for a less expensive one, or rely on public transportation or carpooling if possible.
  • Renegotiate Insurance & Loan Terms: Shopping around for insurance, adjusting your coverage, or refinancing a car or home loan could result in substantial savings.
  • DIY Repairs and Projects: Learn to handle basic home repairs, appliance maintenance, or car tune-ups with the help of online tutorials. You’ll save on labor and might even gain a marketable skill.
  • Cancel Underused Subscriptions: Cancel gym memberships, streaming services, or any recurring payments you hardly notice.
  • Lower Utility Bills: Adjust thermostats, weatherproof windows, check for leaks, and unplug electronics. Tiny steps can reduce monthly expenses substantially.
  • Avoid New Debts: Put off large, non-essential purchases and avoid “buy now, pay later” plans, which often increase overall costs.

Alternatives to Bankruptcy: Professional Guidance in Texas

The bankruptcy team at Machi Wright & Associates works daily with Texas clients overwhelmed by debt. For many, bankruptcy is not the immediate first step. Other proven legal and financial alternatives include:

  • Credit Counseling: Non-profit agencies can negotiate creditor terms, lower interest rates, and structure a debt management plan (DMP). You deposit one payment monthly with the counselor, who pays creditors. The impact on your credit is usually less severe than bankruptcy, but requires discipline and months (or years) to fully succeed. Make sure to use a reputable agency and check for fees.
  • Debt Consolidation: This brings multiple debts into a single loan. You’ll ideally enjoy a lower rate, easier budgeting, and fewer late fees. This strategy works best with steady income and good credit, and doesn’t erase original debts—it simply changes how you pay them off.
  • Direct Negotiation with Creditors: Many creditors would rather accept reduced payment than risk getting nothing after bankruptcy. Machi Wright & Associates can advise you and, if needed, negotiate directly to lower your balance, waive fees, or offer fair payment arrangements.
  • Judgment-Proof Status: If your only income is exempt (such as Social Security) and you have few assets, you may be “judgment proof.” Even a court judgment for non-payment may not be collectible. An attorney can explain whether you qualify.
  • Legal Protections: Texas and federal law shield some income (disability, unemployment, retirement) from garnishment. Machi Wright & Associates will clarify and defend your rights.
  • If you’re considering bankruptcy after a personal injury, see our personal injury legal services page for related resources.

When Bankruptcy Is the Right Solution

Despite your best efforts, income and expense adjustments or debt negotiation may not be enough to solve your debt crisis. If you are still facing lawsuits, foreclosure, repossession, wage garnishment, or cannot maintain basic needs, Chapter 7 or Chapter 13 bankruptcy may give you a true “fresh start.” Bankruptcy provides legally enforced relief: collection calls stop, lawsuits and garnishments end, and many debts can be discharged or restructured under court supervision. Before deciding, consult with a trusted attorney—like those at Machi Wright & Associates—to make sure you understand the benefits, costs, and long-term impact of all your options.

Why Work With Machi Wright & Associates?

  • Decades of experience guiding Texas families through financial crisis, debt reduction, and bankruptcy law.
  • Local knowledge of courts, creditors, and consumer protections in Arlington, Dallas-Fort Worth, and across North Texas.
  • Personalized guidance so you can weigh bankruptcy alternatives before you commit.
  • Respectful, clear communication—you’re never a number or a file: we focus on your unique financial story.
  • Comprehensive support—from credit counseling referrals to representation in bankruptcy court or creditor negotiations.
  • Transparent, fair fee structure: always know your costs and your options up front.

Take the Next Step – We’re Here for You

If you’ve tried everything and debt relief still seems out of reach, remember: you’re not alone, and solutions do exist. Call Machi Wright & Associates for a free, no-obligation case evaluation. We’ll review your finances, suggest alternatives, and stand by your side if bankruptcy becomes your best or only option. Whether you’re fighting to keep your home, avoid garnishment, or rebuild after a personal injury, Machi Wright & Associates protects your future and your peace of mind.

Explore your full options—visit our pages on bankruptcy law in Texas and personal injury resources to learn more, or schedule your consultation today.

Related Articles

Continue learning with these in-depth guides from our bankruptcy attorneys:

Our Legal Services

Machi Wright & Associates provides experienced legal representation:

Find a Bankruptcy Attorney Near You

Machi Wright & Associates serves clients throughout the Dallas-Fort Worth Metroplex:

Need Help? Talk to a Texas Bankruptcy Attorney

If you have questions about this topic, the attorneys at Machi Wright & Associates can help. We offer free initial consultations and have over 30 years of experience helping North Texas families navigate bankruptcy and debt relief.

Call us today: (817) 335-8880
Office: 1521 N Cooper St, Ste 550, Arlington, TX 76011
Hours: Monday–Friday, 8:30 AM – 5:30 PM

Five-Star Reviews

See Why Clients Trust Machi Wright & Associates

Hear From Those We've Helped

Real people in Arlington and across North Texas trust this firm when debt feels overwhelming.

“Very Pleasant”

“We had a very pleasant experience with MR. Daniel, The whole process went very smoothly !"

Marco Macias

“Excellent”

“Hands down I recommend Daniel and his team. I was so nervous being here but they provided me with so much peace and understanding. "

Antoinette Oliver

“Fantastic Firm”

“Dan Wright helped my company whenever one of our customers had a tricky bankruptcy case."

Mary Palacios

“Legal Dream Team”

“Mr. Daniel Wright was very determined to help us with our case. Thank you!"

Vivian Clarkson

"Caring & Honest"

“I had a great experience at this firm. Everyone was patient and kind."

Claudia

“Highly Recommend”

"We would recommend this firm highly over a large firm for many reasons."

Michael

Take the Next Step

Focused on Fresh Starts. Serving Arlington and North Texas.

Contact Us for a Free Bankruptcy Consultation

Have questions about Chapter 7 or Chapter 13? Ready to talk about your options? Call our Arlington office at (817-335-8880) or fill out the form below to schedule a free, confidential consultation with a bankruptcy attorney.

5 Things Setting You Up for Financial Disaster

Bankruptcy Relief in Arlington, Texas

Your Expert Team

Get clear, practical guidance from a local Arlington bankruptcy attorney

Our Small Firm is Big on Results. With more than 30 years of experience helping regular folks in Arlington, Fort Worth, and all of DFW, Machi Wright & Associates has successfuly represented thousands of your neighbors. Contact us for a FREE consultation.

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Machi & Associates, P.C.
5 Things That Could Be Setting You Up For Financial Failure

A good credit score can make life a lot easier. Ranging from the low 300’s to 900, a credit score allows lenders to see how responsible you have been in the past when it comes to managing your debt and paying your bills on time. The higher your score, the easier it is to obtain new credit when needed.

While a score under 600 probably isn’t going to prevent you from getting you that new car – or a house – you will pay much more for it due to higher interest rates. A score over 750 is going to open your borrowing options significantly. With the average American credit score coming in at 695 (considered fair), there are a lot of people out there struggling to bring their scores into a range that allows them to obtain the financial help they need easily.

Poor Planning

Eventually, everyone needs to make a big purchase, and let’s face it; those larger purchases often require a loan of some sort. Failing to anticipate these big-ticket expenses can cause real havoc when it comes to your credit. If you owe too much money compared to the amount you qualify for (which is calculated by something called a credit utilization ratio), getting that new loan can become difficult. Even if you don’t have enough “extra” cash to save for future expenses, planning for that new loan can help you get what you need when the time comes.

High-Interest Credit Cards

While high-interest credit cards themselves won’t hurt your credit score unless you make late payments, the more you spend on interest, the less money you will have available to pay down the balance. Considering that the amount of debt being carried accounts for 30% of your credit score, paying down those credits cards as fast as possible can have a significant impact on boosting those scores.

Too Many Credit Cards

Having too many credit cards – especially if they all have a balance – can dramatically reduce your credit score. This is due to several factors:

  • Your credit utilization ratio which compares your current balances with your overall credit limits

  • Your ability to juggle payments

  • Your credit diversity – with new credit reporting practices instituted in 2017, credit scores are now bolstered by having a more diverse debt portfolio that includes both revolving and fixed debt (credit cards, mortgages, car loans, etc.).

Life Changes without Habit Changes

Getting married? Buying a house? Having a child? These are all big and expensive life changes. The problem is, many people fail to make the habit changes necessary to maintain good credit when life takes a new turn. For instance, when Jane and Jeremy had their first child, Jane decided to leave her full-time job for a part-time one. This dramatically decreased their household income at the exact time that their expenses increased. To make matters worse, Jeremy’s health insurance plan had a bigger deductible than Jane’s did, adding even more expenses to their household. Despite these income changes, the couple refused to change their spending habits. Relying on credit cards and a home equity line of credit to survive, they soon found themselves in financial trouble. Had they altered their spending habits earlier, this couple may have saved themselves a lot of grief – and avoided the bankruptcy that ensued.

Unplanned Events

The fact is “life happens.” Sometimes these inevitable events are expensive. Maybe someone gets sick and medical bills begin to mount. Or a car accident leaves a family without a vehicle. It is these types of unexpected events that can send even the most responsible person into a financial tailspin. Nothing hurts a credit score faster than sudden bills that begin to pile up – especially when you have no way to pay them off. One way to avoid the credit hit that unplanned events can have on your financial security is to:

  • Create an emergency fund (even $1,000 can usually handle most sudden emergencies)

  • Designate one credit card solely for emergencies. This gives you some wiggle room when it comes to paying for unexpected expenses.

  • Have a plan. Whether it is selling something, getting a part-time job, or borrowing the needed funds from an outside source, having some sort of plan for handling emergencies can keep you from making quick decisions that could have a negative impact on your financial future.

We all know the importance of a good credit score. The problem is, few people understand how those scores are calculated and what things have the most impact. Understanding that the amount of debt you carry, the kind of debt you carry, and your payment history are the most significant contributors to your credit score can help you plan accordingly – and handle emergencies more responsibly.

No one is perfect when it comes to handling their money. But, when it comes to firming up your finances, it is vital that you review the credit killers above and avoid them as much as possible.

To learn more about how to get yourself out of a bad debt situation, call the experts at Ted Machi & Associates P.C. for a free consultation.

Related Articles

Continue learning with these in-depth guides from our bankruptcy attorneys:

Our Legal Services

Machi Wright & Associates provides experienced legal representation:

Find a Bankruptcy Attorney Near You

Machi Wright & Associates serves clients throughout the Dallas-Fort Worth Metroplex:

Need Help? Talk to a Texas Bankruptcy Attorney

If you have questions about this topic, the attorneys at Machi Wright & Associates can help. We offer free initial consultations and have over 30 years of experience helping North Texas families navigate bankruptcy and debt relief.

Call us today: (817) 335-8880
Office: 1521 N Cooper St, Ste 550, Arlington, TX 76011
Hours: Monday–Friday, 8:30 AM – 5:30 PM

Five-Star Reviews

See Why Clients Trust Machi Wright & Associates

Hear From Those We've Helped

Real people in Arlington and across North Texas trust this firm when debt feels overwhelming.

“Very Pleasant”

“We had a very pleasant experience with MR. Daniel, The whole process went very smoothly !"

Marco Macias

“Excellent”

“Hands down I recommend Daniel and his team. I was so nervous being here but they provided me with so much peace and understanding. "

Antoinette Oliver

“Fantastic Firm”

“Dan Wright helped my company whenever one of our customers had a tricky bankruptcy case."

Mary Palacios

“Legal Dream Team”

“Mr. Daniel Wright was very determined to help us with our case. Thank you!"

Vivian Clarkson

"Caring & Honest"

“I had a great experience at this firm. Everyone was patient and kind."

Claudia

“Highly Recommend”

"We would recommend this firm highly over a large firm for many reasons."

Michael

Take the Next Step

Focused on Fresh Starts. Serving Arlington and North Texas.

Contact Us for a Free Bankruptcy Consultation

Have questions about Chapter 7 or Chapter 13? Ready to talk about your options? Call our Arlington office at (817-335-8880) or fill out the form below to schedule a free, confidential consultation with a bankruptcy attorney.

Eleven Indicators It Might Be Time to File for Bankruptcy

Bankruptcy Relief in Arlington, Texas

Your Expert Team

Get clear, practical guidance from a local Arlington bankruptcy attorney

Our Small Firm is Big on Results. With more than 30 years of experience helping regular folks in Arlington, Fort Worth, and all of DFW, Machi Wright & Associates has successfuly represented thousands of your neighbors. Contact us for a FREE consultation.

Get Started Today

11 Indicators It Might Be Time to File for Bankruptcy

No one wants to file for bankruptcy. But if you have debts you can’t manage and your life is trending out of control, it might be time to consider whether bankruptcy can help you.

In this article, we discuss 11 surefire indicators that you have a debt crisis on your hands. If some of these sound familiar, you’re not alone—and there is help! Use this checklist to determine if it’s time to consider bankruptcy as a potential path to financial stability.

Understanding Different Types of Bankruptcy

Before reviewing the signs, it’s helpful to understand the main types of bankruptcy:

  • Chapter 7 Bankruptcy (Liquidation): Involves selling your non-exempt assets to pay off debts. Often suitable for those with limited income and assets.
  • Chapter 13 Bankruptcy (Reorganization): Involves setting up a payment plan to pay back debt over 3–5 years, typically allowing you to retain key assets.

Which type of bankruptcy to file depends on your financial situation, income, and assets. Always consult a qualified bankruptcy attorney before proceeding.

11 Key Indicators That It May Be Time to File for Bankruptcy

  1. Overwhelming Debt

    If your debts and non-tax liabilities exceed your assets and income, and interest or late charges continuously accrue with no reversal in sight, bankruptcy could offer a real chance for a financial reset.

  2. Using Credit Cards for Essentials

    Routinely using credit cards for daily living expenses (groceries, utilities) signals insufficient income. High interest rates can quickly spiral debt out of control.

  3. Constant Calls from Creditors

    If you receive regular calls or collection notices, it’s a major sign of growing debt problems. Bankruptcy’s automatic stay stops most creditor contact and collection efforts.

  4. No Savings

    Living paycheck to paycheck with no emergency fund means even minor setbacks can become major financial disasters. Bankruptcy may offer relief and a chance to rebuild savings.

  5. Risk of Foreclosure or Repossession

    If you’re in danger of losing your home or car due to missed payments, bankruptcy might stop these actions and provide time to reorganize your finances.

  6. High Medical Bills

    Unexpected, large healthcare expenses can drive even responsible people into unsustainable debt. Bankruptcy can provide a lifeline to erase or restructure some medical debts.

  7. Loss of Income

    Significant drops in income from job loss or illness can rapidly lead to debt accumulation. Bankruptcy may help restructure debts during recovery periods.

  8. Legal Actions

    If you’re facing lawsuits, wage garnishment, or repossessions, these are strong signs that your debt has become unmanageable. Bankruptcy can halt many legal collection actions.

  9. Maxed Out Credit Cards

    If all your cards are at their limits and you can’t make minimum payments, it’s a warning sign. Bankruptcy may wipe out or reorganize your credit card debt.

  10. Consistently Missing Payments

    Being late frequently or unable to catch up on missed payments results in mounting fees, more debt, and a sinking credit score.

  11. Using Loans to Pay Off Debts

    Borrowing, especially from personal loans or payday lenders, just to pay off other debts creates a dangerous cycle and often makes things worse.

Alternatives to Bankruptcy

  • Debt consolidation programs
  • Negotiating payment plans with creditors
  • Credit counseling

Before filing, assess whether you’ve exhausted these alternatives and fully understand the consequences of bankruptcy.

Seeking Professional Legal Advice

Bankruptcy is a significant legal and financial step. Consulting with a bankruptcy attorney ensures you understand your options, the process, and potential consequences—and that paperwork is completed properly.

Take the time to weigh all options and speak to a qualified attorney. Proper planning may allow you to keep your home and rebuild a brighter financial future.
For assistance, reach out to Ted Machi & Associates to discuss your situation.

Frequently Asked Questions (FAQs)

What is an automatic stay?
The automatic stay is a legal pause on most creditor actions and collection efforts after you file for bankruptcy, giving you breathing room and legal protection.
Will bankruptcy erase all my debts?
Bankruptcy may discharge many unsecured debts, like credit cards and medical bills, but some debts (such as taxes, child support, and most student loans) are generally not dischargeable.
Can I keep my home or car?
Depending on the type of bankruptcy and your payment status, you may be able to keep essential assets—especially under Chapter 13. Discuss asset exemptions with your attorney.
How does bankruptcy affect my credit?
Bankruptcy can remain on your credit report for 7–10 years, but it also may help you start rebuilding credit by clearing unmanageable debt.

Related Articles

Continue learning with these in-depth guides from our bankruptcy attorneys:

Our Legal Services

Machi Wright & Associates provides experienced legal representation:

Find a Bankruptcy Attorney Near You

Machi Wright & Associates serves clients throughout the Dallas-Fort Worth Metroplex:

Need Help? Talk to a Texas Bankruptcy Attorney

If you have questions about this topic, the attorneys at Machi Wright & Associates can help. We offer free initial consultations and have over 30 years of experience helping North Texas families navigate bankruptcy and debt relief.

Call us today: (817) 335-8880
Office: 1521 N Cooper St, Ste 550, Arlington, TX 76011
Hours: Monday–Friday, 8:30 AM – 5:30 PM

Five-Star Reviews

See Why Clients Trust Machi Wright & Associates

Hear From Those We've Helped

Real people in Arlington and across North Texas trust this firm when debt feels overwhelming.

“Very Pleasant”

“We had a very pleasant experience with MR. Daniel, The whole process went very smoothly !"

Marco Macias

“Excellent”

“Hands down I recommend Daniel and his team. I was so nervous being here but they provided me with so much peace and understanding. "

Antoinette Oliver

“Fantastic Firm”

“Dan Wright helped my company whenever one of our customers had a tricky bankruptcy case."

Mary Palacios

“Legal Dream Team”

“Mr. Daniel Wright was very determined to help us with our case. Thank you!"

Vivian Clarkson

"Caring & Honest"

“I had a great experience at this firm. Everyone was patient and kind."

Claudia

“Highly Recommend”

"We would recommend this firm highly over a large firm for many reasons."

Michael

Take the Next Step

Focused on Fresh Starts. Serving Arlington and North Texas.

Contact Us for a Free Bankruptcy Consultation

Have questions about Chapter 7 or Chapter 13? Ready to talk about your options? Call our Arlington office at (817-335-8880) or fill out the form below to schedule a free, confidential consultation with a bankruptcy attorney.

11 Questions to Ask Before Filing Bankruptcy in TX

Bankruptcy Relief in Arlington, Texas

Your Expert Team

Get clear, practical guidance from a local Arlington bankruptcy attorney

Our Small Firm is Big on Results. With more than 30 years of experience helping regular folks in Arlington, Fort Worth, and all of DFW, Machi Wright & Associates has successfuly represented thousands of your neighbors. Contact us for a FREE consultation.

Get Started Today

11 Important Questions To Ask Yourself Before Filing For Bankruptcy In Texas

Summary:
If you live in Texas and are considering filing for bankruptcy, it’s a major decision that requires understanding your options and potential outcomes. This guide will help you ask the right questions to determine which type of bankruptcy might be best for you and whether filing is the right choice.

1. What Is Bankruptcy?

Bankruptcy is a legal process that helps individuals or businesses who cannot repay their outstanding debts. It allows debtors to eliminate or reorganize debts under federal law, providing a fresh start or manageable repayment plan.

2. Am I Eligible for Bankruptcy?

  • You must pass a “means test” comparing your income to Texas’s median income (approx. $66,963 as of 2024) to qualify for Chapter 7.
  • If you do not qualify for Chapter 7, Chapter 13 may still be available.
  • Eligibility depends on income, household size, and financial situation. Consult a qualified attorney for exact evaluation.

3. What Types of Bankruptcy Are Available?

  • Chapter 7: Designed for people with little or no income. Involves liquidation of non-exempt assets to discharge most unsecured debts, giving you a fresh start.
  • Chapter 13: For individuals with a steady income who want to reorganize debt and repay over 3–5 years while keeping assets like your home and car.

4. What Are the Pros and Cons of Filing?

Pros

  • Eliminates or restructures debts
  • Automatic stay stops creditor harassment and collection efforts
  • Offers a financial fresh start

Cons

  • Can negatively impact your credit score for several years
  • Possible loss of some assets (especially under Chapter 7)
  • Public record of bankruptcy filing

5. Which Debts Will Be Discharged?

Bankruptcy can discharge many unsecured debts, but some are non-dischargeable:

  • Child support and alimony payments
  • Certain tax debts
  • Student loans (usually)
  • Debts from fraudulent activity

Chapter 7 typically erases dischargeable debts; Chapter 13 reorganizes debts into a repayment plan.

6. Will I Lose My Property and Assets?

Texas offers generous exemptions to protect your property:

  • Homestead exemption: Protects up to 10 acres in a city or 100 acres in a rural area.
  • One vehicle per licensed adult household member is exempt.
  • Up to $100,000 personal property exemption per household.
  • Retirement accounts, life insurance, and other assets may be exempt — consult an attorney.

Chapter 7 may require selling non-exempt property; Chapter 13 usually allows you to keep your property while repaying debts.

7. How Will Bankruptcy Affect My Credit?

Bankruptcy remains on your credit report for 7–10 years, negatively impacting your credit score. However, it provides a way to start rebuilding credit over time, which may be impossible if debts remain unpaid.

How long does bankruptcy stay on my credit report?

Chapter 7 remains up to 10 years; Chapter 13 typically remains 7 years.

8. What Are the Alternatives to Bankruptcy?

  • Debt consolidation
  • Negotiating payment plans with creditors
  • Credit counseling and budgeting assistance

Consider these options before filing, but consult an attorney to evaluate if they are feasible in your situation.

9. How Long Does the Bankruptcy Process Take?

  • Chapter 7: Usually 3–6 months
  • Chapter 13: Generally 3–5 years as payments are made under a court-approved plan

The process includes filing petition, credit counseling, attending creditor meeting, and submitting financial disclosures. Your attorney can help estimate timelines based on your case specifics.

10. Can I Keep My House and Car?

Yes, under Texas law:

  • Home: Protected under Texas Homestead exemption with no value limit for your primary residence.
  • Vehicle: One vehicle per licensed adult household member is exempt.

If you are behind on financed vehicle payments, creditors can repossess; keeping your home and car often depends on staying current on payments and bankruptcy chapter choice.

11. Should I Consult an Attorney?

Filing bankruptcy without an attorney is possible but risky. Experienced Texas bankruptcy attorneys protect your assets, ensure correct paperwork, and guide you through complex legal processes. Courts do not provide legal advice, so professional representation is strongly recommended.

Frequently Asked Questions (FAQs)

Can bankruptcy stop foreclosure or car repossession?
Yes, filing triggers an automatic stay that halts most collection actions temporarily. However, outcomes depend on your case type and payments made.
Will my spouse be affected if I file bankruptcy?
Filing individually affects only your credit and liabilities unless you share joint debt.
Are there costs involved in filing bankruptcy?
Yes, including court filing fees, attorney fees, and sometimes trustee fees.

Key Bankruptcy Terms and Definitions

Term Definition
BankruptcyLegal process to eliminate or restructure debt.
Chapter 7 BankruptcyLiquidation bankruptcy discharging most unsecured debts.
Chapter 13 BankruptcyRepayment plan lasting 3–5 years to reorganize debts.
Automatic StayCourt order halting creditor collections after filing.
Exempt PropertyAssets protected from liquidation under bankruptcy law.

Contact Texas Bankruptcy Law Firm Machi Wright & Associates

Related Articles

Continue learning with these in-depth guides from our bankruptcy attorneys:

Our Legal Services

Machi Wright & Associates provides experienced legal representation:

Find a Bankruptcy Attorney Near You

Machi Wright & Associates serves clients throughout the Dallas-Fort Worth Metroplex:

Need Help? Talk to a Texas Bankruptcy Attorney

If you have questions about this topic, the attorneys at Machi Wright & Associates can help. We offer free initial consultations and have over 30 years of experience helping North Texas families navigate bankruptcy and debt relief.

Call us today: (817) 335-8880
Office: 1521 N Cooper St, Ste 550, Arlington, TX 76011
Hours: Monday–Friday, 8:30 AM – 5:30 PM

Five-Star Reviews

See Why Clients Trust Machi Wright & Associates

Hear From Those We've Helped

Real people in Arlington and across North Texas trust this firm when debt feels overwhelming.

“Very Pleasant”

“We had a very pleasant experience with MR. Daniel, The whole process went very smoothly !"

Marco Macias

“Excellent”

“Hands down I recommend Daniel and his team. I was so nervous being here but they provided me with so much peace and understanding. "

Antoinette Oliver

“Fantastic Firm”

“Dan Wright helped my company whenever one of our customers had a tricky bankruptcy case."

Mary Palacios

“Legal Dream Team”

“Mr. Daniel Wright was very determined to help us with our case. Thank you!"

Vivian Clarkson

"Caring & Honest"

“I had a great experience at this firm. Everyone was patient and kind."

Claudia

“Highly Recommend”

"We would recommend this firm highly over a large firm for many reasons."

Michael

Take the Next Step

Focused on Fresh Starts. Serving Arlington and North Texas.

Contact Us for a Free Bankruptcy Consultation

Have questions about Chapter 7 or Chapter 13? Ready to talk about your options? Call our Arlington office at (817-335-8880) or fill out the form below to schedule a free, confidential consultation with a bankruptcy attorney.

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