Bills pile up, creditor calls keep coming, and the threat of foreclosure or a judgment feels real. What can you do next in Texas? Types of bankruptcies in Texas matter because Chapter 7, Chapter 13, and Chapter 11 each affect exemptions, the automatic stay, discharge rules, and how trustees handle your case. This article breaks down common types of bankruptcies in Texas and shows how to weigh debt relief options, the means test, and asset protection so you can pick the path that fits your goals.
To help you act, Warren & Migliaccio L.L.P., Dallas–Fort Worth Chapter 7 bankruptcy lawyers, help DFW residents evaluate Chapter 7 bankruptcy for the right debt-relief path. If Chapter 13 or Chapter 11 turns out to be a better fit, we’ll connect you with trusted counsel. Hence, you get the right next steps.
What Does it Mean to File for Bankruptcy in Texas?
Filing for bankruptcy means you or your business asks a federal bankruptcy court for legal relief from creditors. You become the debtor. You file a petition and schedules with the U.S. Bankruptcy Court for the federal district that covers where you live or do business.
From the moment you file, an automatic stay goes into effect, and creditors must stop most collection actions, including:
- Calls
- Lawsuits
- Garnishments
- Most foreclosures
A bankruptcy judge and a trustee will oversee the case, and you must supply sworn financial paperwork to the court and the trustee.
Which Chapters Can You Choose? A Quick Guide To The Common Types
- Chapter 7: Liquidation for individuals and businesses without a feasible repayment plan. A trustee can sell nonexempt assets and distribute proceeds to creditors. If you qualify under the means test, many unsecured debts end with a discharge.
- Chapter 13: Repayment Plan for Individuals with Regular Income. You keep property while making plan payments to a trustee for three to five years; the court discharges qualifying unsecured debt at the end of the plan.
- Chapter 11: Reorganization for businesses and individuals with larger or complex debts that need restructuring. It allows a debtor to propose a plan to keep operating while paying creditors over time.
- Subchapter V of Chapter 11: A streamlined option for small businesses that reduces cost and speeds plan confirmation.
- Chapter 12: A reorganization tailored for family farmers and fishermen, with payment plans designed around farm income cycles.
At Warren & Migliaccio, we focus exclusively on consumer Chapter 7 cases in Dallas, Collin, Denton, and Tarrant Counties, while providing educational insight on other chapters for comparison.
Which Chapter Fits You: Rules And Common Thresholds
Will you pass the Chapter 7 means test? The court compares your current monthly income against the median state income for your household size and then looks at disposable income.
If your income exceeds the threshold, you may not qualify for Chapter 7. In that case, other chapters like Chapter 13 or Chapter 11 may provide repayment or reorganization options.
At Warren & Migliaccio L.L.P., we help DFW residents evaluate their eligibility for Chapter 7 consumer bankruptcy first. If your circumstances suggest that Chapter 13 or Chapter 11 would be a better solution, we’ll connect you with trusted Texas counsel who handle those types of cases.
Texas Exemptions And What You Can Keep In Your Case
Texas uses its own exemption laws, which often let debtors keep more property than federal exemptions. The homestead exemption is broad and governed by state rules, including acreage limits for urban and rural homesteads.
Texas also protects many types of personal property, such as some household goods, tools of the trade, certain retirement accounts, and public benefits. Exemption details and dollar amounts vary by item and are subject to change. Therefore, it is essential to confirm the current rules with a bankruptcy attorney or the trustee before assuming what you can keep.
The Filing Steps: Paperwork, Meetings, And Education Requirements
You file the bankruptcy petition, schedules, statement of financial affairs, and related forms with the U.S. Bankruptcy Court in the appropriate Texas district. You must complete an approved credit counseling course within 180 days before filing and a debtor education course after filing to get a discharge.
The trustee conducts a 341 meeting of creditors where you answer questions under oath about your finances and the filed documents. The trustee may review assets and exemptions and may ask for additional documents.
How Bankruptcy Affects Secured Debts And Property
Secured debts are tied to collateral. You can surrender the collateral and walk away in some cases, redeem it by paying its current value in a lump sum, reaffirm the debt and keep the collateral under the original contract, or strip liens in some Chapter 13 plans.
For homeowners, bankruptcy can delay foreclosure through the automatic stay and may allow you to cure mortgage arrears in a Chapter 13 plan. Lenders may have rights that survive discharge for certain liens.
Common Non-Dischargeable Debts And Limitations
Not all debts disappear. Child support, most domestic support obligations, many student loans, certain recent tax debts, debts incurred by fraud, and fines or penalties generally survive bankruptcy.
Some business creditor claims also survive depending on how the case resolves. You can challenge or seek to discharge certain tax and student loan debts, but those paths usually require extra legal steps.
Which Court And Judge Handle Your Texas Case
Texas has four federal bankruptcy districts: Northern, Southern, Eastern, and Western. File in the district that covers your residence or principal place of business. Bankruptcy judges sit in the bankruptcy court for each district and handle only bankruptcy matters. Appeals go to the U.S. District Court for that district.
Practical Effects On Credit, Housing, And Business Operations
Filing shows up on credit reports and can lower credit scores, but it also stops collector actions and creates a legal path to get rid of or restructure debt. Many debtors rebuild credit within months by using secured credit cards or small installment loans after the discharge.
For businesses, a Chapter 11 or Subchapter V case can let operations continue while a plan restructures obligations; some owners choose to liquidate instead.
Questions To Bring To A Bankruptcy Attorney Or Trustee
- Do I pass the Chapter 7 means test?
- Which Texas exemptions apply to my house, car, and retirement?
- Can I keep my business, or must I convert to Chapter 11?
- What debts will not be discharged in my case?
- How long will the case take, and what are the court costs?
- Who will be the trustee, and when is the 341 meeting scheduled?
- Which documents will the trustee request?
5 Common Types of Bankruptcies in Texas
Chapter 7 Liquidation: Fast Relief Through Asset Sale
Chapter 7, often called straight bankruptcy, works by assigning a court-appointed trustee to sell non-exempt property and pay creditors from the proceeds. Most unsecured debts, such as credit cards and medical bills, are eligible for discharge, while certain obligations, like most student loans and recent tax debts, remain.
Texas Bankruptcy: Understanding the Means Test and Exemptions
The means test compares your income to the state median to determine eligibility; if your income is too high, you may be steered to Chapter 13. Texas exemptions are generous, which means many filers keep their home, a vehicle, retirement accounts, and other protected property rather than losing them to liquidation.
Cases typically close in four to six months, and the process begins with an automatic stay that stops creditor collection activity.
Have you checked how the means test and Texas exemptions apply to your situation?
Because we focus on consumer Chapter 7 filings, we walk DFW clients through this means-test process to determine eligibility before considering other forms of relief.
Chapter 13 Repayment Plan: Keep Assets, Pay Over Time
While Warren & Migliaccio L.L.P. does not file Chapter 13 cases, we explain how this option works so DFW residents can make informed decisions. Chapter 13 lets an individual reorganize debts into a three to five-year court-approved repayment plan while keeping property. You must have a regular income and meet the debt caps for 2025:
- Secured debts under $1,395,875
- Unsecured debts under $465,275
Chapter 13 Repayment Plans: Keeping Your Home and Car
The plan repays creditors according to priority rules and can cure mortgage arrears, so you avoid foreclosure or stop vehicle repossession. Priority debts, such as child support and many taxes, are not dischargeable and must be paid through the plan.
The automatic stay protects you immediately, and a confirmed plan gives predictable monthly payments under court supervision.
Could a Chapter 13 plan protect your home while you catch up on past due payments?
Chapter 11 Reorganization: Restructure And Keep Operating
We do not represent clients in Chapter 11 reorganizations, but understanding its purpose helps consumers and small-business owners see how it differs from Chapter 7. Chapter 11 is the main route for businesses that want to stay open while they reorganize debts and operations. The business usually remains in possession and works with creditors and the court to confirm a repayment or restructuring plan; creditors vote, and the court confirms a plan that meets statutory requirements.
Chapter 11 is more costly and complex, with extensive reporting, negotiated compromises, and potential creditor litigation. Subchapter V makes Chapter 11 more accessible for small businesses with debts under $3,024,725, offering a faster and less expensive path with streamlined procedures.
Does your business need the breathing room and structure that a Chapter 11 plan can provide?
Other Chapters That Matter: Municipalities, Farmers, And Special Cases
Chapter 9 is reserved for municipalities such as cities, towns, and school districts that need debt adjustment under court supervision. Chapter 12 serves family farmers and fishermen by tailoring repayment plans to seasonal income and operational realities. These chapters are less common for individuals but essential when the eligible party fits the narrow statutory definitions.
Are any of these special chapters a match for your client or business?
Warren & Migliaccio: Your Trusted Texas Family Law Advocates
Ready to protect what matters most to your family with trusted legal guidance from Warren & Migliaccio’s experienced Dallas–Fort Worth Chapter 7 bankruptcy lawyers? Whether you’re facing consumer bankruptcy under Chapter 7, divorce, child custody issues, estate planning needs, or debt defense challenges, our specialized team provides compassionate, results-driven representation tailored to your unique situation.
Contact us today at (888) 584‑9614 to schedule a free consultation and let our dedicated legal advocates help you navigate through life’s most challenging legal matters with confidence and peace of mind.
Related Reading
- Business Bankruptcy In Texas
- Filing Bankruptcy Chapter 7 in Texas
- How Much Cash is Exempt in Chapter 7, Texas
Texas Bankruptcy Exemptions and Protections
Bankruptcy exemptions let you keep certain property when you file for bankruptcy in Texas. You may choose Texas exemptions or federal exemptions, but you must meet the residency rules before you can use Texas exemptions. Exemptions protect everyday tools, your house, retirement savings, and specific benefits.
At the same time, unsecured creditors may get paid from any non-exempt assets a trustee sells or from plan payments in a reorganization case. The type of bankruptcy you choose matters: Chapter 7 handles liquidation, Chapter 13 sets up a repayment plan for individuals, Chapter 11 covers business reorganizations and complex individual cases, and Chapter 12 serves family farmers and fishers.
Texas Homestead Exemption: Protecting Your Home and the Acreage Rule
Texas lets you protect all equity in a primary residence from most creditors. The key limit is acreage, not dollar value. Urban homesteads qualify up to 10 acres within a city, town, or village. Rural homesteads qualify up to 100 acres for a single adult or up to 200 acres for a family, subject to contiguity rules.
Sale proceeds are protected for six months after the sale. Keep in mind that valid secured liens, such as purchase money mortgages and tax liens, generally survive bankruptcy and can still attach to the property.
Personal Property Exemptions: What Counts Toward the Cap
Texas protects many personal items, but the state caps total personal property exemptions at $50,000 for single filers and $100,000 for married joint filers. Items that count toward this cap include:
- Home furnishings
- Clothing
- Appliances
- Family heirlooms
- Athletic equipment
- Motor vehicle equity
Jewelry is exempt up to $12,500 for a single filer and doubles for joint filers. You can protect livestock within stated limits and basic household goods that you use to live and work.
Items Outside the Cap: Special Protections That Do Not Reduce Your Limit
Certain items do not reduce your $50,000 or $100,000 cap.
Exemptions outside the cap include:
- Sacred books
- Health aids like:
- Wheelchairs
- Hearing aids
- Alimony and child support
- Burial plots
These protections help keep essential health and family needs intact when you file for bankruptcy.
Motor Vehicle Exemption: Cars and Licensed Household Members
Texas allows one motor vehicle per licensed household member to be exempt, with no fixed dollar cap on the vehicle itself. The value you use for those exempt vehicles does count toward the personal property cap.
If a household member lacks a license but owns a vehicle someone else drives for them, that vehicle can qualify for the exemption, which often helps people with disabilities.
No Wildcard in Texas: When Federal Exemptions Can Help
Texas does not offer a general wildcard exemption that lets you protect any asset of your choice. If you opt to use federal bankruptcy exemptions instead, you can use the federal wildcard.
Under federal exemptions, you may protect a small wildcard amount plus any leftover homestead exemption in certain combinations. Federal exemption amounts change periodically, so check current figures before you file.
Retirement, Pensions, and Public Benefits: Strong Protections
Most tax-favored retirement plans receive strong protection in bankruptcy. ERISA-qualified plans, 401 (k) plans, IRAs, Roth IRAs, Keogh plans, and many public employee pensions are generally exempt.
Texas law also explicitly protects many state and local retirement benefits, such as:
- Teachers’ pensions
- Police and firefighter pensions
- Judge pensions
- Specific county and municipal plans
Unemployment benefits, workers’ compensation, and crime victims’ compensation typically remain exempt.
Insurance and Group Benefit Exemptions: Policy Cash Value and Payouts
Life insurance cash value, annuity payouts, group insurance benefits, and fraternal benefit society proceeds often qualify for exemption in Texas. You must list these assets on your schedules, and exemptions may vary depending on who the beneficiary is and the type of policy.
Group benefits for Texas employees and public school employees have specific protections under state law.
Lawsuit Settlements and Pending Claims: What to Expect
Pending claims and settlement proceeds are assets that you must disclose when you file. State law may not exempt many personal injury awards, but federal exemptions protect specific personal injury and wrongful death recoveries.
The federal wildcard can shield part of the settlement proceeds in some cases. How a pending claim is treated depends on whether the claim is for:
- Personal injury
- Wrongful death
- Future lost earnings
- Other types of damage
What Happens to Non-Exempt Property in Chapter 7 and Chapter 13
Chapter 7 is a liquidation process. A bankruptcy trustee may take non-exempt assets, sell them, and distribute proceeds to creditors after applying exemptions. In Chapter 13, you keep your property, but you must fund a repayment plan that pays unsecured creditors at least the value of your non-exempt assets over the plan term.
For example, a car worth $3,000 with a $5,000 vehicle exemption stays with you in either chapter. If the car is worth $15,000, a trustee in Chapter 7 could sell it and pay you the exemption amount while distributing the remainder. In Chapter 13, you would need to pay unsecured creditors the non-exempt value through plan payments, adjusted for sale costs and existing secured loans.
Secured Liens, Mortgage and Tax Issues: What Exemptions Cannot Fix
Exemptions do not erase valid secured liens. A mortgage, a tax lien, or a properly perfected security interest generally survives the bankruptcy discharge unless you strip or avoid the lien under specific rules. If a lien exceeds the property value, the unsecured portion may be treated differently depending on the chapter you file.
Residency and Timing Rules: Which State Exemptions You Can Use
You use the exemptions of the state where you have lived for the 730 days ending on the date of filing. If you lived in Texas for the 180 days before filing but not the prior 730 days, a different rule applies, and you may have to use exemptions from the state where you lived the longest during the 180 days before those two years.
These timing rules, as outlined in 11 U.S.C. section 522(b)(3)(A), can change which exemption set you may claim.
Avoiding Exemption Mistakes: Practical Steps to Protect Property
Keep detailed records for the property you want to exempt, including purchase receipts, titles, and proof of residency. Do not transfer or hide assets before filing; pre-filing transfers can be reversed and may lead to fraud claims.
If you move between states, track the dates carefully so you know which exemptions apply. Ask yourself which bankruptcy chapter makes better use of your exemptions and how liens will affect protected property.
Related Reading
- How Much Does A Lawyer Charge For Chapter 7 In Texas
- Texas Bankruptcy Exemptions
- Texas Law On Unpaid Medical Bills
How Do I Get Started Filing for Bankruptcy in Texas?
Begin with a clear inventory. List every creditor, current balance, minimum payment, interest rate, and any pending collection actions or lawsuits. Separate secured debt, like your mortgage or car loan, from unsecured debt, like credit cards and most medical bills.
Note income sources, recent pay stubs, and monthly expenses so you can run the means test and estimate whether Chapter 7 liquidation or Chapter 13 repayment will be achievable.
Pick the Right Bankruptcy Path for Your Case
Which bankruptcy path fits you? We focus on Chapter 7 bankruptcy for DFW consumers, and if Chapter 13 or 11 proves more appropriate, we’ll connect you with trusted counsel who can help.
- Chapter 7 eliminates many unsecured debts through liquidation, while exempt property stays with you.
- Chapter 13 creates a court-approved repayment plan over three to five years and can stop foreclosure or wage garnishment.
- Chapter 11 usually serves businesses or high-asset individuals who need reorganization.
Consider exemptions, the homestead rules in Texas, secured debt treatment, and whether student loans or recent tax debts will remain nondischargeable.
At Warren & Migliaccio, our team guides you through Chapter 7 eligibility, exemptions, and filing requirements, and can refer you to experienced colleagues for other chapters when needed.
Talk to a Texas Bankruptcy Attorney Who Knows Local Rules
Why consult an attorney early? A lawyer explains the federal bankruptcy code and Texas-specific exemptions, helps calculate the means test, and evaluates alternatives like debt settlement or reaffirmation agreements.
An attorney will prepare schedules, negotiate with creditors, and represent you at the meeting of creditors and in any motions to the court. Ask about experience with consumer Chapter 7 bankruptcy and defense against creditor lawsuits. If your case involves reorganization, we can refer you to attorneys who handle Chapter 13 or 11 matters.
Gather Your Paper Trail: Documents You Will Need
Collect:
- Tax returns
- Recent pay stubs
- Bank
- Retirement account statements
- Title documents
- Mortgage statements
- Car loan paperwork
- Credit card statements
- Medical bills
- Any collection letters or summons
Also, assemble proof of household expenses such as utility bills and lease agreements. Accurate documentation speeds filing, helps the trustee, and supports claims for Texas exemptions like the homestead and personal property exemptions.
Complete Mandatory Credit Counseling and Debtor Education
Federal law requires a pre-filing credit counseling course from an approved agency and a post-filing debtor education course before discharge. Use the United States Trustee list to find approved providers and check course formats and fees at https://www.justice.gov/ust/moc.
Keep certificates of completion; the court will not accept a filing without the pre-filing counseling certificate.
File the Bankruptcy Petition and Start the Automatic Stay
Your attorney prepares and files the bankruptcy petition, schedules of assets and liabilities, statement of financial affairs, and local forms required by the Texas bankruptcy court.
Filing triggers the automatic stay, which immediately stops most creditor actions, such as:
- Collection calls
- Foreclosure
- Wage garnishment
Expect to file proof of income and follow local rules for filing fees or fee waivers.
Show Up Prepared for the 341 Meeting of Creditors
The 341 Meeting is a short hearing run by the trustee where you answer questions under oath about your:
- Schedules
- Recent income
- Transfers
- Secured property
Creditors can attend and ask questions or file proofs of claim later.
Bring:
- Government photo ID
- Social security card
- Originals of pay stubs and other documents
Your attorney will coach you on typical questions so you respond clearly and avoid surprises.
Understand Discharge Timing and Limits on What Can Be Wiped Out
After required waiting periods and completion of any repayment plan, the court may issue a discharge that releases you from personal liability for many debts.
Some debts are not dischargeable, including:
- Recent taxes
- Most student loans
- Certain domestic support obligations
- Debts from fraud
The trustee may sell nonexempt property in a Chapter 7 administration, while Chapter 13 requires completing plan payments before discharge becomes available.
Handle Creditor Claims, Reaffirmations, and Property Exemptions
Creditors file proofs of claim for unsecured and secured claims. You can object to incorrect claims with the court’s help. If you want to keep a car or secured asset, discuss reaffirmation agreements or surrender options with your lawyer.
Use Texas exemptions to protect the homestead, vehicle equity, retirement accounts, and household goods when you claim exemptions on your schedules.
Plan for Life After Bankruptcy and Rebuilding Credit
Create a realistic budget, rebuild savings, and consider secured credit products or timely bill payment to repair credit. Watch out for scams from petition preparers who promise quick fixes.
If you are self-employed or run a small business, coordinate personal and business filings carefully so you avoid mixed asset pitfalls.
Protecting What Matters: Your Trusted Texas Family Law Advocates
Ready to protect what matters most to your family with trusted legal guidance from Warren & Migliaccio’s experienced Dallas–Fort Worth Chapter 7 bankruptcy lawyers? Whether you face bankruptcy, divorce, child custody, estate planning, or debt defense challenges, our specialized team provides compassionate, results-driven representation tailored to your situation.
Contact us at (888) 584‑9614 to schedule a free consultation.
Choosing the Right Type for Your Situation
Pick the Chapter That Fits Your Income Situation
- If your disposable income is low or zero, Chapter 7 often gives the fastest debt relief because it allows the discharge of most unsecured debts after liquidation of nonexempt assets.
- If you earn enough to make regular payments, Chapter 13 sets up a repayment plan to catch up on arrears while keeping property.
- Do you run a farm or fishery operation? Chapter 12 targets family farmers and fishermen with a special repayment structure.
Check eligibility rules before you file, because the means test and other requirements decide which chapter you can use.
Match Your Debt Type to the Right Bankruptcy Chapter
Unsecured debt, such as credit cards and medical bills, usually clears in Chapter 7. Secured debt, like a mortgage or car loan, often requires a plan in Chapter 13 to stop foreclosure or repossession and to cure arrears over time.
Business debt that exceeds Chapter 13 limits or that you want to restructure calls for Chapter 11, while Subchapter V offers a more straightforward reorganization path for qualifying small businesses. What kinds of debts make up most of your balance sheet right now?
Protect Your Property Using Texas Exemption Laws
Texas exemption statutes protect homestead equity, retirement accounts, household goods, tools of the trade, and certain vehicle equity. If your property falls within Texas exemptions, Chapter 7 will usually not force you to give it up.
If you have significant nonexempt assets, Chapter 13 or Chapter 11 lets you preserve them by paying creditors through a plan. Decide early which exemptions apply to your situation and gather documentation that proves ownership and value.
Understand the Means Test and Eligibility Rules That Matter
The means test compares your household income against the Texas median income for a similar household size. If you fall below the median, you generally qualify for Chapter 7. If you exceed it, the test computes allowable expenses and disposable income to see if Chapter 7 is appropriate or if a Chapter 13 plan is required.
Prior bankruptcy filings create timing rules that can block a new discharge for a set period, so check past case dates before you file.
When Business Debt Calls for Chapter 11 or Subchapter V
Chapter 11 handles complex restructurings and large business debt while letting owners keep control in many cases. Subchapter V reduces costs and speeds up confirmation for small business reorganizations under certain debt limits and operational criteria.
If you want to continue business operations and negotiate with secured creditors, these options give more flexibility than liquidation under Chapter 7. Ask whether your business qualifies for the simplified Subchapter V path.
How Chapter 13 Repayment Plans Work and What You Can Keep
Chapter 13 plans run three to five years and use your disposable income to pay creditors. Plans allow you to cure mortgage and car arrears over time, stop foreclosure, and, in some cases, reduce the principal on certain secured loans through cramdown rules.
Priority debts like domestic support and certain taxes receive special treatment. The trustee reviews plan feasibility and claims from creditors to confirm payment terms.
Automatic Stay and Immediate Protections When You File
Filing triggers the automatic stay, which halts most collection actions, lawsuits, wage garnishment, and foreclosure activity while the case proceeds. Creditors can ask the bankruptcy court to lift the stay, but that requires court action and a hearing.
You will attend a meeting of creditors with the trustee shortly after filing to answer questions and provide documentation.
Common Debt Types That Often Cannot Be Discharged
Child support, most domestic support obligations, recent tax debts, and debts from fraud or willful misconduct generally remain nondischargeable. Student loans rarely discharge without a separate adversary proceeding showing undue hardship. If your most significant balances include these categories, plan accordingly and get tailored advice.
Practical Questions to Ask Before You File
- Do you have nonexempt equity that a trustee could liquidate?
- Are you behind on a mortgage or car loan and want to stop foreclosure or repossession?
- Have you filed for bankruptcy before, and if so, when was the discharge?
- Do you expect lawsuits or wage garnishment in the immediate future?
- Collect pay stubs, tax returns, mortgage statements, and titles so your attorney or bankruptcy specialist can model outcomes.
When to Bring in a Texas Bankruptcy Attorney
Texas exemption rules and local bankruptcy practice vary from district to district. An experienced attorney will run the means test, evaluate exemptions, and prepare your Chapter 7 case. If your situation calls for a repayment or reorganization plan under Chapter 13 or 11, we’ll connect you with a trusted Texas counsel who specializes in those chapters.
They will also spot procedural traps and filing timing issues that can affect discharge or asset protection. Would you like a short checklist to prepare for an initial consultation?
Related Reading
- Voluntary Repossession In Texas
- Exempt Bank Accounts In Texas
- How Much Does It Cost To File Bankruptcy In Texas
Call (888) 584‑9614 to Schedule Your Free Consultation
Warren & Migliaccio L.L.P: Trusted Texas Family And Bankruptcy Advocates Ready To Protect What Matters Most
Warren & Migliaccio L.L.P. offers experienced Dallas–Fort Worth Chapter 7 bankruptcy lawyers who handle bankruptcy, divorce, child custody, estate planning, and debt defense with care and practical focus.
They tailor strategies for:
- Consumer Chapter 7 bankruptcy
- Foreclosure defense
- Creditor harassment
For Chapter 13 or Chapter 11 cases, we’ll refer you to trusted professionals who focus on those complex reorganizations.”
Want a free consultation? (888) 584‑9614 and speak with advocates who will review options for:
- Debt relief
- Debt consolidation
- Restructuring
Chapter 7 Bankruptcy In Texas: Fast Liquidation For Qualifying Consumers
Chapter 7 erases many unsecured debts such as credit card balances, medical bills, and personal loans through liquidation overseen by a bankruptcy trustee. You may keep exempt property under the Texas exemption law, including a strong homestead exemption in many cases.
Who qualifies? The federal means test compares household income to the median for Texas to determine eligibility.
Chapter 13 Bankruptcy In Texas: Repayment Plans For Steady Income Earners
Chapter 13 lets wage earners keep property while repaying creditors under a court-approved plan that usually lasts three to five years. It can stop foreclosure, halt wage garnishment, and allow you to catch up on past-due mortgage or car payments.
Plan terms balance secured debt, priority tax claims, and unsecured creditors, producing a predictable monthly payment.
Chapter 11 Bankruptcy: Business Reorganizations And Complex Debt Cases
Chapter 11 suits businesses and some individuals with large or complicated debts who need to restructure obligations while staying in operation. The debtor often proposes a reorganization plan to keep assets, renegotiate contracts, and preserve value for creditors and owners.
Cases can involve:
- Secured lending
- Lien stripping
- Cramdown procedures
Chapter 12 Bankruptcy: Relief For Family Farmers And Fishermen
Chapter 12 mirrors Chapter 13 but fits family farmers and fishermen, allowing seasonal income to fund a payment plan that addresses farm mortgages and operating debt. It offers smoother eligibility rules and plan flexibility tailored to agricultural cycles.
Texas Bankruptcy Exemptions: Protecting Home Equity, Vehicles, And Retirement
Texas law provides generous exemptions, especially for homestead protection and retirement accounts like IRAs and qualified plans. Exemptions can shield your primary residence, tools of the trade, and certain personal property from liquidation. Exemptions differ from federal lists, so choosing the Texas state exemptions usually matters for asset protection.
Automatic Stay And Immediate Protections When You File
Filing a bankruptcy petition triggers an automatic stay that stops most collection actions, including lawsuits, repossession, wage garnishment, and foreclosure sales. Creditors must pause collection and seek court relief to proceed.
The stay gives breathing room to organize a repayment plan or negotiate a resolution.
Means Test, Eligibility, And Whether Bankruptcy Fits Your Situation
The means test filters Chapter 7 candidates by comparing household income to Texas median figures and adjusting for allowable expenses. If you fail the test, Chapter 13 may remain an option to restructure debts.
Each case needs a close review of:
- Income
- Expenses
- Secured debts
- Priority tax obligations
Secured Debt, Unsecured Debt, And How Liens Behave In Bankruptcy
Secured debts attach to collateral like a house or car and can be surrendered, reaffirmed, redeemed, or crammed down, depending on the chapter and value. Unsecured debts carry no collateral and often receive partial or no repayment in Chapter 7; Chapter 13 may provide a structured payout.
Liens may survive a discharge unless properly avoided or stripped through plan confirmation.
How Bankruptcy Affects Credit, Garnishments, And Foreclosure Actions
Bankruptcy will show on a credit report, but it can stop immediate collection threats. The automatic stay halts garnishments and foreclosure sales while a plan can cure mortgage defaults. Rebuilding credit begins once you follow the repayment plan or obtain a discharge and manage secured obligations responsibly.
Common Steps In A Texas Bankruptcy Case: Filing, Trustee Duty, Meeting Of Creditors
A bankruptcy case typically begins with credit counseling, filing the petition and schedules, and attending the 341 meeting, where the trustee and creditors may ask questions.
The trustee reviews:
- Assets
- Exemptions
- Possible fraud issues
Confirmation hearings and discharge orders follow based on the chapter and compliance.
When To Consider Bankruptcy Versus Alternatives Like Debt Settlement Or Negotiation
If wage garnishment, foreclosure, or creditor suits threaten your household, filing may provide immediate protection and a path to resolve debts. Alternatives include debt negotiation, debt management plans, or targeted settlements for unsecured balances.
The route that fits you best depends on your:
- Income stability
- Asset protection goals
- Long-term financial plans
How Warren & Migliaccio Can Help You In Texas Bankruptcy And Family Law Matters
The firm combines consumer Chapter 7 bankruptcy experience with family law skills useful when community property, joint debts, or custody issues intersect with a financial crisis.
They handle Chapter 7 filings, exemption planning, and creditor defense.
If Chapter 13 or 11 becomes a better option, we’ll connect you with reliable partner attorneys who can assist.”
Call (888) 584‑9614 to arrange a free consultation and get case-specific advice on:
- Chapter 7
- Chapter 13
- Alternatives to filing
