Bankruptcy: n. 1. The statutory procedure by which a person is relieved of most debts and undergoes a judicially supervised reorganization or liquidation. Uncertain economic times and challenging business environments can give rise to financial difficulties that seem to have no easy answer. Bankruptcy is designed to help individuals obtain a fresh start in order to work through seemingly insurmountable financial obstacles, and to give troubled businesses breathing room in which to restructure their obligations, preserving jobs and operations.

The attorneys at Searcy & Searcy, PC have extensive bankruptcy experience representing both debtors and creditors as well as individuals and businesses. Our attorneys have practiced in United States Bankruptcy Courts throughout the states of Texas and Louisiana and have represented clients in hundreds of cases, including in Chapters 7, 11, 12 and 13.


Both individuals and businesses are eligible to file this chapter. Chapter 7 can help an individual obtain a discharge of outstanding debts without the need to make payments over time to a Trustee. An individual in this chapter keeps exempt property but surrenders to a Trustee non-exempt property which will be used to pay creditors. Certain types of debts are not dischargeable. If a business declares bankruptcy, Chapter 7 is the orderly liquidation of all of the assets of the business to be distributed to creditors.


Only a family farmer or family fisherman is able to file under this chapter, and Chapter 12 is a form of bankruptcy specifically tailored to the needs of farmers. A debtor in Chapter 12 makes payments over some period of time to reorganize and restructure outstanding debts. Debts which are not paid are discharged as in Chapter 7, but the farm is preserved for the future.


Only individuals are eligible to file this chapter. Chapter 13 helps an individual obtain a discharge of outstanding debts by requiring said debtor to make payments of disposable income over a three-to-five-year period to a Trustee. The Trustee uses these payments to catch up mortgage or auto loan payments, to catch up unpaid income or property taxes and to pay some or all of the debts owed to unsecured creditors. Unpaid debts are discharged if the law allows it, and just as in Chapter 7, the person filing keeps all exempt property.


Chapter 11 is designed to help businesses reorganize and restructure their debts and operations. Additionally, certain individuals may file Chapter 11 cases as well. An individual filing Chapter 11 will generally make payments over some period of time to be distributed to creditors and will obtain a discharge of unpaid debts. For a business, no two Chapter 11 cases are alike. The spectrum of Chapter 11 business cases ranges from reorganizations where debts are paid and operations preserved, to orderly liquidations, to auctions of assets, to mergers and/or sale of assets.

Representative Cases:

Chapter 7:

  • Helped a client discharge over a million dollars in medical bills
  • Assisted a client with discharging debts from a failed business
  • Filed numerous cases discharging hundreds of thousands of dollars in credit card debts

Chapter 12:

  • Helped a dairy farm restructure over two million dollars in secured debt

Chapter 13:

  • Helped a family restructure thousand of dollars in credit card debt
  • Filed numerous cases enabling clients to cure home mortgage and auto loan arrearages
  • Helped a client try to collect unpaid child support from a former spouse

Chapter 11:

  • Helped a family restructure hundreds of thousands of dollars owed to the Internal Revenue Service
  • In re Gilmer Road Loop 281 Partnership 
  • In re Ecco Drilling Company, Ltd.
  • In re Ameri-Tech Industries 
  • In re WRT 
  • In re Cornerstone 
  • In re Reichman Petroleum
  • In re Venus Exploration 
  • In re Dorado Energy 
  • In re Energy Recovery Group 
  • In re Rally Partners
  • In re Sand Hill Foundation 
  • In re Starship Shops 
  • In re Crump Food Stores
  • In re Tri-State Delivery