Chapter 7 — Individual.
A fresh start, with an attorney and a CPA under one roof.
Personal Chapter 7 is rarely just about debt. It is about pre-bankruptcy tax planning, Texas exemption maximization, the means test, the future of the home, and — for business owners and professionals — the careful sequencing of personal and business exposure. Lone Star Counsel is one of the few Texas firms where the same lawyer is also a CPA.
The Texas advantage
Texas has an unlimited homestead exemption — one of the most protective in the country. With careful planning, the home can stay.
Pre-bankruptcy tax planning
What you do in the 90 days before filing matters as much as the filing itself. Transfers, IRA contributions, exemption planning — all must be done within the rules.
The means test
Above-median income does not automatically disqualify you from Chapter 7. The means test has structure and counter-arguments. We run it correctly.
Attorney + CPA
Most personal Chapter 7 clients also have tax exposure, retirement-account questions, and business-income reporting issues. One firm, both licenses, no hand-offs.
When personal Chapter 7 is the right tool
- Unsecured debt has become unmanageable and no realistic repayment plan exists.
- You pass the means test — or have a credible argument for special circumstances.
- Most of your assets are within Texas exemptions (homestead, retirement, life insurance cash value, vehicles, household goods).
- You have not made disqualifying transfers in the 90-day to 2-year look-back periods.
- You are prepared for the credit, social, and professional implications of a public filing.
When personal Chapter 7 is not the right tool
- You have substantial non-exempt assets that you wish to keep — Chapter 13 may be the right tool.
- Recent transfers to family or insiders may be voidable — pre-bankruptcy planning is required first.
- Most of the debt is non-dischargeable (recent taxes, student loans without hardship, domestic-support obligations, fraud judgments).
- Your income meaningfully exceeds the means-test threshold without credible special-circumstances arguments.
Chapter 7 (Individual) vs. the alternatives
| Dimension | Chapter 7 (Individual) This page | Chapter 13 | Workout / Settlement | Do Nothing |
|---|---|---|---|---|
| Outcome | Discharge of unsecured debt | 3–5 year repayment plan, then discharge | Settle for less, no court filing | Continued exposure to suit & judgment |
| Timeline | 60–120 days to discharge | 3–5 years | 30–180 days | Indefinite |
| Income required? | Below-means or special circumstances | Stable income required | Some ability to pay | N/A |
| Keep non-exempt assets? | No | Yes — if plan funds them | Yes | Until collected |
| Best when… | Pass means test, mostly exempt assets | Above-means, want to keep assets | Few creditors, willing counterparties | Almost never |
The process — a personal Chapter 7
Strategic assessment
Means test, exemption analysis, transfer review, tax exposure, retirement assets, business interests, non-dischargeable debt analysis.
Pre-filing planning
Lawful exemption maximization, tax positioning, retirement contributions, addressing any look-back exposure.
Credit counseling course
Statutorily required within 180 days before filing.
Petition filed
Voluntary petition. Automatic stay protects you from collection immediately upon filing.
Section 341 meeting
Meeting of creditors, typically 30–45 days post-filing. You attend with counsel.
Debtor education course & discharge
Statutorily required course. Discharge typically enters 60–90 days after the 341 meeting.
Frequently
asked.
Direct answers to the questions we are asked most often about this matter.
All firm FAQs