● McKinney, TX (Collin County)
✓ Chapter 7 & Chapter 13 Bankruptcy
The Law Office of Veronica Deaver
Complete the short form below, and Veronica’s office will contact you about scheduling a private consultation.
When credit cards, medical bills, lawsuits, judgments, or other debt become impossible to manage, Chapter 7 may provide a path toward a discharge of qualifying debt. The decision should start with eligibility, property, liens, secured loans, income, recent transactions, and the debts that may survive bankruptcy, not a promise that everything simply disappears.
Chapter 7 is the liquidation chapter of the Bankruptcy Code. A Chapter 7 trustee is appointed to review the bankruptcy estate, the debtor’s schedules, recent financial activity, claimed exemptions, and other required information. Property protected by applicable exemptions is generally not available for liquidation, while nonexempt property can be administered for creditors. Many consumer Chapter 7 cases are no-asset cases, but that result depends on the facts and cannot responsibly be promised before the property and exemption analysis is complete.
For a McKinney resident, the first practical questions often involve income, home equity, vehicle equity, cash and bank balances, tax refunds, recent transfers, lawsuits, secured loans, and whether the debt is primarily consumer debt. Those facts help determine whether Chapter 7 is available and whether Chapter 13 or another strategy should also be considered.
Many individual consumer filers must complete Chapter 7 means-test forms. Current U.S. Trustee data must be used for the filing date.
Homes, vehicles, accounts, personal property, retirement interests, claims, and other assets need to be identified and valued before filing.
Many unsecured debts may be dischargeable, while support obligations, some taxes, student-loan obligations, fraud-related debts, and other categories can require different analysis.
Bring the income, assets, debt, liens, and deadlines into one review before deciding what to file.
The Bankruptcy Code uses a means-test framework in many individual Chapter 7 cases involving primarily consumer debt. The first stage compares the debtor’s current monthly income, calculated under the bankruptcy rules, with applicable state median-income data for the household size. If additional calculations are required, the statutory forms use specified expense standards and other deductions to determine whether a presumption of abuse arises.
Current numbers matter. The U.S. Trustee Program updates Census Bureau median-income data and IRS-based expense standards on an effective-date schedule. In 2026, revised IRS standards and administrative-expense multipliers apply to cases filed on or after July 15. This page should therefore explain the framework and link to current data rather than hard-code an old “Texas income limit.”
Passing the means test is also not the only legal issue. Prior filings, credit counseling, the accuracy of schedules, recent transfers, ability to repay creditors, business versus consumer debt, and other Bankruptcy Code provisions can affect the analysis.
Do not publish stale means-test numbers. Link to the current U.S. Trustee means-testing page. If hard numbers are ever displayed, show the applicable filing period and reverify them.
Chapter 7 does not mean that a debtor automatically loses everything, and it also does not mean that every filer automatically keeps everything. The Bankruptcy Code creates the bankruptcy estate, and exemption law determines what property can be protected from administration. Texas debtors may have important exemption choices and protections, but the correct exemption analysis depends on residency history, ownership, equity, liens, property type, and other facts.
The bankruptcy discharge releases an individual debtor from personal liability for debts that are discharged. Many ordinary unsecured debts, including many credit-card balances, medical bills, personal loans, and deficiency claims, may fall within that relief. But the right to discharge is not absolute, and some obligations are excluded from discharge or require a creditor to establish nondischargeability.
Domestic support obligations, certain taxes, many student-loan obligations, some debts arising from fraud or misconduct, criminal fines and restitution, and other categories can require special analysis. Secured debt adds another layer: discharging personal liability does not automatically erase a valid lien against property.
When a bankruptcy petition is filed, the automatic stay generally takes effect and stops many collection actions against the debtor or property of the estate. That can include many lawsuits, collection calls, garnishment activity, foreclosure activity, and repossession efforts. But the Bankruptcy Code contains exceptions. Prior bankruptcy filings can affect the duration or availability of the stay, and secured creditors can ask the court for relief from stay.
Timing matters especially with foreclosure and repossession. If a foreclosure sale has already been completed under state law before bankruptcy is filed, Chapter 7 does not rewind the clock merely because a petition is filed afterward. If a vehicle has already been repossessed or sold, the legal analysis can also be materially different.
Identify income, assets, debts, liens, lawsuits, transfers, prior cases, exemption issues, and deadlines. Individual debtors generally must complete approved credit counseling before filing, subject to limited exceptions.
The filing requires complete financial disclosure. Assets, debts, income, expenses, contracts, leases, co-debtors, prior transactions, and other information must be accurate and complete.
The petition starts the case. The automatic stay generally pauses many collection actions, subject to statutory exceptions and case-specific limitations.
The Chapter 7 trustee reviews the filing and questions the debtor under oath at the meeting of creditors. Additional documents or explanations may be requested.
Creditors and the trustee have statutory deadlines for certain objections or actions. Reaffirmation, redemption, lien, dischargeability, or asset issues may need to be resolved.
In a straightforward no-asset consumer case, discharge often occurs within a few months. An asset case or litigation can remain open longer even after discharge.
Chapter 7 can be useful when a debtor qualifies and the main objective is relief from qualifying unsecured debt without a multi-year repayment plan. Chapter 13 can become more useful when regular income, mortgage arrears, vehicle debt, priority debt, nonexempt property, or another issue makes a court-supervised repayment plan more appropriate.
A homeowner several months behind on a mortgage can have a very different goal from a renter with mostly medical and credit-card debt. Likewise, a debtor with substantial nonexempt equity or recent tax debt may need a different analysis.
The Law Office of Veronica Deaver is located at 1575 Heritage Dr Suite 107, McKinney, TX 75069. This page prioritizes McKinney ZIP codes 75069, 75070, 75071, and 75072, with nearby support for Allen, Frisco, Prosper, Melissa, Princeton, and Collin County.
Collin County is in the Sherman Division of the U.S. Bankruptcy Court for the Eastern District of Texas. The Sherman Division is served by the Plano office at 660 North Central Expressway, Suite 300B, Plano, TX 75074.
The old site incorrectly says the Sherman Division includes Dallas, Hunt, and Rockwall Counties. Remove that statement everywhere it survives.
Veronica Deaver’s current site identifies her as the attorney and states that she has been licensed in Texas since 1998. That is a useful trust fact. The rebuilt page should use singular, accurate language and remove broad superiority or “best attorney” claims.
The consultation should focus on the facts that change Chapter 7 analysis: income, household size, property, liens, payment status, recent transfers, prior bankruptcy cases, pending lawsuits, foreclosure or repossession dates, taxes, and the debt categories involved.
Recent pay records or other income information, recent tax returns, and documentation of unusual or changing income.
Creditor statements, collections, lawsuits, judgments, garnishment papers, tax notices, student-loan information, and support obligations.
Mortgage and vehicle statements, estimated values, account balances, insurance, retirement accounts, and information about recent transfers or sales.
Chapter 7 is the liquidation chapter of the Bankruptcy Code. A trustee reviews the bankruptcy estate and may administer nonexempt property, while applicable exemptions can protect certain property. Many individual cases are no-asset cases, but that outcome depends on the facts.
Eligibility depends on several rules, including income, the means-test framework in many consumer cases, prior filings, credit counseling, and whether granting Chapter 7 relief would be considered abusive.
The means test is a statutory calculation used in many individual consumer Chapter 7 cases. It uses current monthly income and, when required, specified expense deductions and other amounts. Current U.S. Trustee data should be used for the filing date.
Not necessarily. The answer depends on exemptions, equity, liens, payment status, secured-debt rights, and trustee administration. Filing Chapter 7 does not automatically erase valid liens.
Filing can trigger the automatic stay and pause many collection actions, including some foreclosure activity, but exceptions and limitations apply. Chapter 7 is not a long-term mortgage-arrear repayment plan.
A filing before repossession may temporarily affect collection because of the automatic stay, but secured creditors retain important rights. If a vehicle has already been repossessed or sold, the analysis changes.
Chapter 7 can discharge many qualifying unsecured debts. Some debts are not discharged, and certain debts may be nondischargeable only after a creditor successfully brings an action. Valid liens can also survive discharge.
The Chapter 7 trustee conducts a meeting of creditors, commonly called the 341 meeting. The debtor answers questions under oath about the petition, schedules, assets, income, debts, and financial history.
A straightforward consumer Chapter 7 case can often reach discharge within a few months, but case length depends on objections, nonexempt assets, litigation, trustee administration, and other issues.
Collin County is in the Sherman Division of the U.S. Bankruptcy Court for the Eastern District of Texas. The Sherman Division is served by the Plano office at 660 North Central Expressway, Suite 300B, Plano, Texas 75074.
Neither chapter is universally better. Chapter 7 may fit some people who qualify and need relief from unsecured debt without a repayment plan. Chapter 13 may be more useful when regular income, mortgage arrears, secured debt, or retaining property under a repayment plan is central.
Bring recent income records, bank statements, tax returns, a list of debts and assets, mortgage and vehicle statements, lawsuits or judgments, recent transfers, and any foreclosure or repossession notices.
A useful consultation should identify eligibility issues, property risk, secured-debt questions, deadlines, and debts that may survive the case.