Bankruptcy Lawyers in Texas

Bankruptcy in Texas

Bankruptcy in Texas is governed by federal law but includes several state-specific provisions that can impact the process. Individuals typically file under Chapter 7 or Chapter 13, while businesses might consider Chapter 11. Chapter 7 involves liquidating assets to pay off debts, whereas Chapter 13 allows for a repayment plan over three to five years. Texas offers a generous homestead exemption under which homeowners may protect an unlimited amount of equity in their primary residence, subject to certain acreage limits. This exemption is a significant consideration for many residents contemplating bankruptcy. In Texas, the median income plays a key role in determining eligibility for Chapter 7 bankruptcy. If a debtor's income is below the state median, they may qualify for Chapter 7. Otherwise, they must pass a means test. The means test compares the debtor's income to their expenses, determining if disposable income is available to repay creditors. For those pursuing Chapter 13, a repayment plan is proposed and must be approved by the court. Texas bankruptcy courts are located in major cities such as Houston, Dallas, Austin, and San Antonio, making access relatively convenient. Debtors must attend a credit counseling session with an approved agency before filing and complete a debtor education course to have their debts discharged.

Texas Laws & Regulations

Texas has unique laws that can affect bankruptcy filings. The Texas Property Code provides an unlimited homestead exemption, protecting the debtor's primary residence up to 10 acres in an urban area or 100 acres in rural areas (200 acres for families). This exemption can be a critical factor for homeowners considering bankruptcy. Additionally, Texas allows for exemptions on personal property, including vehicles and certain personal items, up to specific value limits. Texas also follows community property laws, which can influence how debts and assets are treated in bankruptcy. In community property states like Texas, most assets and debts acquired during marriage are considered jointly owned, which means both spouses' assets and debts may be involved in bankruptcy proceedings, even if only one spouse files.

Typical Attorney Costs in Texas

State Bar of Texas

How to Find a Bankruptcy Lawyer in Texas

Finding a bankruptcy lawyer in Texas involves several steps. Start by researching attorneys with specific experience in bankruptcy law. The State Bar of Texas website offers a lawyer referral service, providing a convenient way to locate qualified professionals in your area. Additionally, consider consulting with multiple attorneys to discuss your case and compare their fees and services. Personal recommendations from friends or family who have undergone bankruptcy can also be valuable. Online reviews and ratings may provide insight into an attorney's reputation and client satisfaction. Ensure any lawyer you consider is licensed to practice in Texas and has a strong understanding of both federal bankruptcy laws and Texas-specific exemptions.

Bankruptcy Attorneys in Texas

Lawyers listed in our directory

Frequently Asked Questions