Chapter 7 is the most common, easiest, and fastest form of personal bankruptcy. This type of filing involves the liquidation of assets that are not protected from liquidation by bankruptcy exemption laws. It generally results in a discharge of debt a few months after filing, providing relief from your unsecured debt. Generally, you must qualify for a Chapter 7 bankruptcy. 

The Law Office of Joshua Cavanaugh has helped countless individuals and couples file for Chapter 7 bankruptcies in Fort Bend County. Attorney Joshua Cavanaugh believes everyone deserves a second chance and understands that many people are forced to declare bankruptcy due to unexpected circumstances, from job losses to medical expenses. He concentrates on providing solutions that will best address your situation while informing you of all of the consequences of a bankruptcy filing. His top priority is to help restore you to financial solvency; this will give you a fresh start, a chance to start over, armed with a better understanding of financial planning. 


In a Chapter 7 bankruptcy case, you will be assigned a bankruptcy trustee whose job is to sell off your available assets to pay off your creditors as much as possible. These assets are only those that are “non-exempt” which means they are subject to liquidation. Many assets are “exempt” from this process due to being protected under the law. Most Chapter 7 filings are no-asset cases which means that most Texas filers have little, if any, assets to lose. However, Chapter 7 has some eligibility requirements. 

These requirements include:

  • You must be an individual, a spouse, or a business entity (note that this firm generally limits itself to consumer bankruptcy).
  • You must pass the “means test.” This determines if your monthly income exceeds the Texas state median for a family of your size and if your disposable income falls below a certain level. If you do not pass, Chapter 13 may be an option.
  • You must complete a credit counseling course within 180 prior to filing.
  • You must pay the filing fee to the Bankruptcy Court.

Even if your monthly income exceeds the state requirement, you may still qualify by offsetting your income through various deductions available under bankruptcy law. Attorney Joshua Cavanaugh can help you determine your Chapter 7 eligibility through the proper application of the means test as well as help you navigate all of the necessary steps of the bankruptcy process through the courts. The end goal is to help you obtain a discharge of your unsecured debt, such as credit card debt, medical bills, payday loans, and more to give you a clean financial slate. 

Chapter 7 benefits include:

  • Freeing yourself from major debts in as little as 3 months
  • Halting foreclosure
  • Stopping creditor harassment
  • Keeping your house and car
  • Surrendering a house or car without owing additional debt afterward
  • Getting a chance to rebuild your credit score