You can file Chapter 7 bankruptcy in Texas for free if your household income falls below 150 percent of the federal poverty guidelines. The bankruptcy court can waive the entire $338 filing fee, and legal aid organizations across the state provide free representation to qualifying low-income residents. You still have to complete the required credit counseling, fill out the correct forms, and file in the right federal district, but the money side of the process can be zero out of pocket.
Income Limits for the Fee Waiver
A standard Chapter 7 filing costs $338: a $245 filing fee, a $78 administrative fee, and a $15 trustee surcharge. Federal law lets the court waive all of it when two things are true: your household income is below 150 percent of the federal poverty guidelines for your family size, and you cannot afford to pay even in installments.1Office of the Law Revision Counsel. United States Code Title 28 – 1930 The waiver is only available in Chapter 7 cases, not Chapter 13.
The 150 percent thresholds for 2026 in Texas are:2HHS ASPE. 2026 Poverty Guidelines
- 1 person: $23,940
- 2 people: $32,460
- 3 people: $40,980
- 4 people: $49,500
Applying With Form 103B
You request the waiver by filing Official Form 103B, the Application to Have the Chapter 7 Filing Fee Waived, along with your bankruptcy petition.3United States Courts. Application to Have the Chapter 7 Filing Fee Waived The form asks for your household size, all income sources, and monthly expenses. You sign it under penalty of perjury, so the numbers need to match your actual finances. The judge reviews the full picture before deciding.
Installments If You Don’t Qualify
If the court finds you earn too much for a full waiver but you still cannot pay upfront, you can ask to split the $338 into up to four installments over 120 days by filing Form 103A.4United States Courts. Application for Individuals to Pay the Filing Fee in Installments One condition matters: the entire filing fee must be paid before you pay any additional money to an attorney, petition preparer, or anyone else helping with your case. Missing a scheduled installment can get your case dismissed.
Free Legal Help in Texas
Filing without a lawyer is allowed but genuinely hard. The paperwork is long, the means test is easy to misread, and errors on your schedules can cost you property or your discharge. Free representation removes most of that risk.
Legal Aid of NorthWest Texas covers 114 counties across North and West Texas and handles debt cases for low-income residents. Lone Star Legal Aid covers the eastern part of the state on similar terms. Both screen applicants by income and household size, and both turn away more people than they can help, so applying to both is smart. Local bar association pro bono programs in Houston, Dallas, San Antonio, and Austin add another route, and some cities run dedicated bankruptcy clinics for low-income filers. Contact more than one program and expect to wait.
The Two Required Counseling Courses
Federal law requires two separate courses, one before you file and one after. Skipping either can wreck the case.
Pre-Filing Credit Counseling
Within 180 days before filing, you must complete an individual or group briefing from a nonprofit credit counseling agency approved by the U.S. Trustee Program.5Office of the Law Revision Counsel. United States Code Title 11 – 109 The session covers your budget, alternatives to bankruptcy, and a personalized plan. You can take it by phone or online. The agency issues a certificate when you finish, and that certificate gets filed with your petition. If more than 180 days pass before you file, you have to take it again.
The Department of Justice publishes the list of approved agencies for Texas.6United States Department of Justice. List of Credit Counseling Agencies Approved Pursuant to 11 USC 111 Most agencies charge around $20, but many will reduce or waive the fee for financial hardship. Ask about that when you call.
If you are facing an emergency such as an imminent foreclosure or garnishment, you can file first and request up to 30 days (sometimes 45 with court approval) to complete the counseling, provided you can show you tried to get an appointment and the agency could not see you within seven days.5Office of the Law Revision Counsel. United States Code Title 11 – 109
Post-Filing Debtor Education
After your case is filed, you have to complete a separate financial management course before the court will grant your discharge.7Office of the Law Revision Counsel. United States Code Title 11 – 727 It is a different course from the pre-filing counseling and comes from a different set of approved providers. Skip it and the court closes your case without discharging your debts. You would still owe everything and would have used up your filing. Reopening a closed case to file a late certificate costs more in fees and motion work.
Passing the Means Test
Chapter 7 requires you to pass the means test, which compares your income to the Texas median for your household size. The calculation uses your average monthly income from the six full months before filing, multiplied by 12.8United States Courts. Chapter 7 Statement of Your Current Monthly Income (Official Form 122A-1)
Texas median income figures for cases filed between November 2025 and March 2026:9United States Department of Justice. Median Family Income Table
- 1 earner: $65,123
- 2 people: $84,491
- 3 people: $96,728
- 4 people: $114,938
If your annualized income is below the median for your household, you pass automatically and skip the longer Form 122A-2. Anyone poor enough to qualify for the fee waiver will be well under the median, since the waiver thresholds sit between roughly $24,000 and $50,000. You still have to complete Form 122A-1 either way.
The income calculation counts wages, business income, rental income, pensions, and money others regularly contribute to your household expenses. It does not count Social Security benefits or VA disability payments.8United States Courts. Chapter 7 Statement of Your Current Monthly Income (Official Form 122A-1)
What Property You Get to Keep
Chapter 7 involves a trustee reviewing your assets to see if anything can be sold to pay creditors. Texas exemptions determine what stays yours, and Texas uses its own state list rather than the federal one. The state exemptions are among the most generous in the country.
The homestead exemption has no dollar cap. Your home is fully protected as long as it fits within the acreage limits: up to 10 acres in an urban area, or up to 200 acres for a family (100 acres for a single person) in a rural area.10State of Texas. Texas Property Code 41 – Definition of Homestead
Personal property is protected up to $100,000 in total fair market value for a family or $50,000 for a single adult, covering furnishings, food, clothing, tools of your trade, and unpaid commissions.11State of Texas. Texas Property Code Chapter 42 – Personal Property One motor vehicle per licensed driver in your household sits outside that aggregate cap, so a car’s equity does not eat into your allowance for everything else. Household pets are fully exempt. Jewelry, firearms, and sporting equipment have their own limits within the personal property rules.
Forms and Documents to Gather
All official forms are available at uscourts.gov.12United States Courts. Bankruptcy Forms The core Chapter 7 packet includes:
- Form 101, the Voluntary Petition for Individuals Filing for Bankruptcy13United States Courts. Voluntary Petition for Individuals Filing for Bankruptcy
- Form 103B for the fee waiver, or Form 103A for installments
- Form 122A-1, the means test statement
- Schedules A/B through J, listing your property, secured and unsecured debts, income, and monthly expenses
- Your pre-filing credit counseling certificate
To fill everything out accurately, pull together at least six months of pay stubs (needed for the means test), your most recent tax return, bank and investment statements, loan documents, vehicle titles, and a current mortgage statement if you own a home. Every asset, debt, and income source has to go on the forms. Omissions, even accidental ones, can delay your case, get it dismissed, or block your discharge.
Where to File in Texas
Texas has four federal bankruptcy districts: Northern, Southern, Eastern, and Western. You file in the district where you have lived for the longest portion of the last 180 days. Each district has multiple divisional offices, and which office you use depends on your county. Each district court’s website lists its counties and divisions.
If you are filing without an attorney, most bankruptcy courts require in-person filing at the clerk’s office rather than electronic submission. Call your division’s clerk before going to confirm current procedures, the number of copies they want, and what identification to bring. You will need a government-issued photo ID, and the trustee later needs to verify your Social Security number.14United States Department of Justice. Section 341 Meeting of Creditors
What Happens After You File
The moment your petition is on file, an automatic stay takes effect. This federal injunction stops most collection activity immediately: lawsuits, wage garnishments, creditor calls, bank levies, and foreclosure proceedings all halt.15Office of the Law Revision Counsel. United States Code Title 11 – 362 A creditor who keeps collecting after that point is violating a court order.
The court schedules a meeting of creditors, often called a 341 meeting, roughly 21 to 40 days after you file. Attendance is mandatory. The trustee runs the meeting and asks questions about your finances, forms, and property. Creditors can attend but rarely do in routine consumer cases. At least 14 days before the meeting, you have to send the trustee a copy of your government-issued photo ID and proof of your Social Security number.14United States Department of Justice. Section 341 Meeting of Creditors
Once the meeting is done and your post-filing debtor education course is complete, the court typically grants your discharge about 60 days later.7Office of the Law Revision Counsel. United States Code Title 11 – 727 The discharge permanently wipes out qualifying debts like credit card balances, medical bills, and personal loans. Some debts survive: most student loans, recent tax obligations, child support, and alimony. Start to finish, a straightforward Chapter 7 with a fee waiver usually finishes in about three to four months.