Understanding Chapter 7 Bankruptcy
Chapter 7 bankruptcy, also known as "liquidation bankruptcy," allows individuals and businesses in Texas to eliminate unsecured debts like credit cards, medical bills, and personal loans — often within just a few months.
This process provides immediate relief from creditor calls, lawsuits, and wage garnishments. While some assets may be sold to repay creditors, many essential possessions are protected under Texas exemption laws.
Hooman Khoshnood
"My goal is to give every client a real fresh start — not just legal paperwork, but a genuine path forward."
Hooman Khoshnood is a Texas-licensed bankruptcy attorney with over 25 years of courtroom and client experience representing individuals, families, and businesses across Texas in Chapter 7, Chapter 13, and Chapter 11 bankruptcy proceedings.
Since founding Hooman Khoshnood Law, PC, Hooman has built a reputation for personalized, transparent legal counsel. He takes the time to explain every step of the bankruptcy process in plain language, ensuring clients feel informed and confident rather than overwhelmed. His clients never fill out forms alone — his team handles the paperwork end to end.
Beyond bankruptcy, Hooman's practice spans debt lawsuit defense, debt settlement negotiations, and civil litigation. His multi-disciplinary approach allows him to protect clients from all angles — stopping wage garnishments, halting foreclosures, defending against creditor lawsuits, and negotiating settlements when bankruptcy isn't the right fit.
Hooman is an active member of the State Bar of Texas, the Austin Bar Association, the National Association of Consumer Bankruptcy Attorneys (NACBA), and the American Bankruptcy Institute. He serves clients across Austin, Round Rock, San Antonio, Houston, Tyler, League City, Waco, Willowbrook, McAllen, Brownsville, and Plano.
Schedule a Free ConsultationChapter 7 Discharge Benefits
Once your eligible debts are discharged, you are no longer legally obligated to repay them — giving you a fresh start to rebuild your finances.
Credit Card Debt
Eliminate balances from all major credit cards and store cards.
Medical Bills
Discharge overwhelming hospital and medical provider balances.
Personal Loans
Remove personal loan obligations from your financial picture.
Business Debts
Discharge eligible business-related debts for a full financial reset.
Stop Creditor Calls
An automatic stay immediately halts all collection activities.
Stop Wage Garnishments
Automatic stay protection also stops wage garnishments right away.
Chapter 7 Bankruptcy Filing Costs
Understanding the cost of filing for Chapter 7 bankruptcy is an important step when considering debt relief. We make costs clear from the start — no surprises.
We offer affordable flat fees, flexible payment plans, and a free consultation to review your situation and provide an exact quote.
Chapter 7 Bankruptcy Timeline
Most Chapter 7 cases are completed within 3–6 months. Here's what you can expect along the way:
Case Preparation
We prepare your case together — over Zoom or in person. You don't need to fill out any forms. We handle everything and only need your signature once the paperwork is ready.
Filing Your Petition
Filing officially starts your Chapter 7 case and immediately stops most creditor collection actions with the automatic stay.
Attending the 341 Meeting
About 30 days after filing, you meet with the bankruptcy trustee to review your case. Your attorney will guide you through the process and attend with you.
Debt Discharge
Eligible debts are wiped out and you start fresh with a clean financial slate. Most clients keep all of their property through Texas exemptions.
Our Clients Talk
Real stories from real clients
"Mr. Khoshnood did an amazing job helping me with my bankruptcy case. He explained things thoroughly and kept me up to date throughout the process."
"Mr. Hooman and his team were amazing. They took care of everything they said they would. The process was smooth, I highly recommend them."
"Excellent client service. They work with you through your entire legal process, ensuring you understand every document and legal term."
"This lawyer helped me prepare for my case and answered every question I had. Him or the assistant always answered the phone. So thankful!!"
Chapter 7 Bankruptcy Qualifications
Instead of fearing bankruptcy's impact on credit, focus on financial recovery. After filing, many people begin receiving credit card offers and can start rebuilding their credit. Secured credit cards, on-time payments, and low credit utilization can help improve your score within months.
Means Test Requirements
▾Types of Debt Eligible for Discharge
▾Previous Bankruptcy Filings
▾Credit Counseling Requirement
▾Chapter 7 Bankruptcy and Your Credit Score
Filing for Chapter 7 will affect your credit score, but it can also be the first step toward rebuilding your financial future. A Chapter 7 bankruptcy generally remains on your credit report for up to 10 years, and you may experience an initial decline in your score.
However, many individuals begin to see improvement within one to two years after discharge by practicing sound financial management — timely payments, low credit balances, and regular credit monitoring.
By eliminating overwhelming debt, you gain the opportunity to reset your finances and start improving your credit more effectively than if you had continued struggling with unmanageable payments.
Maximizing Debt Relief with a Skilled Bankruptcy Lawyer
Filing for Chapter 7 alone can be risky. A skilled bankruptcy attorney ensures your case is handled correctly, helping you avoid costly mistakes and maximize the benefits of debt relief.
Proper Case Evaluation
We assess your situation to confirm Chapter 7 is the right option and avoid unnecessary complications.
Avoiding Costly Mistakes
Errors in paperwork or missing deadlines can delay your case. We ensure everything is filed correctly.
Protection from Creditors
We manage all creditor communications and enforce your automatic stay protections.
Court Hearing Guidance
Your attorney attends every hearing with you, ensuring you are fully prepared and supported.
