Chapter 7 is typically the Chapter we recommend if someone needs to file bankruptcy. It is the quickest, the cheapest and the easiest to file if you are eligible. The debtor needs to be current with the secured creditors that he/she wishes to keep. In other words, if you want to keep your house and file a Chapter 7 rather than a Chapter 13 (which would help a wage earner get caught up on the arrears on the house) then you would need to get current.
Chapter 7 lasts 6 months, whereas Chapter 13 lasts a minimum of 36 and maximum of 60 months. Chapter 7 is called a liquidation proceeding, a term that implies that people lose their property that they have worked hard to acquire if they file. That simply is not true. Under either Chapter 7 or Chapter 13 bankruptcy there are two lists of exemptions under the Texas Property Code and the Bankruptcy Code so that most of our clients lose none of their property. Before the bankruptcy is filed we counsel our clients at length about the exemption schedules.