To file for bankruptcy in Texas, you choose between Chapter 7 and Chapter 13, complete a required credit counseling course within 180 days before filing, prepare a petition with detailed schedules of your income, property, and debts, and submit everything to the federal bankruptcy court for the district where you’ve lived most of the past six months. The filing fee is $338 for Chapter 7 or $313 for Chapter 13. Texas exemptions are unusually protective, so most filers keep their home, retirement accounts, and everyday property.
Decide Between Chapter 7 and Chapter 13
The two chapters solve different problems, and picking the wrong one wastes months.
Chapter 7 wipes out most unsecured debts (credit cards, medical bills, personal loans) without a repayment plan. A court-appointed trustee reviews your assets, sells anything not protected by an exemption, and pays creditors from the proceeds. Most Chapter 7 cases in Texas are no-asset cases because state exemptions shield nearly everything. The meeting of creditors happens 20 to 40 days after filing, and discharge can arrive as soon as 60 days after that meeting.
Chapter 13 lets you keep all your property but requires a court-supervised repayment plan lasting three to five years. If your income falls below the Texas median, the plan runs three years unless a court approves longer. If your income exceeds the median, it generally runs five years.1United States Courts. Chapter 13 – Bankruptcy Basics Chapter 13 is the route for filers who earn too much for Chapter 7, who are behind on a mortgage and want to catch up, or who have non-exempt property they want to protect.
Complete Credit Counseling First
Federal law requires a credit counseling session from a government-approved agency within the 180 days before you file.2United States Bankruptcy Court. Notice to All Debtors About Prepetition Credit Counseling Requirement The session covers your finances, alternatives to bankruptcy, and a basic budget. Most agencies offer it by phone or online, and fees vary. Agencies must provide reduced fees or waivers if your household income sits below 150 percent of the poverty level.3United States Trustee Program. Frequently Asked Questions (FAQs) – Credit Counseling You get a certificate at the end that must be filed with your petition. Skip this step and the court will dismiss your case.
Check the Means Test for Chapter 7
Chapter 7 requires you to pass the means test, which compares your average monthly income over the six months before filing to the median income for a household of your size in Texas. For cases filed between November 2025 and March 2026, the Texas medians are $65,123 for one earner, $84,491 for two, $96,728 for three, and $114,938 for four, with $11,100 added for each additional person.4United States Department of Justice. Median Family Income Table
If your income falls below the median, you generally qualify. If it exceeds the median, a second calculation subtracts allowed expenses and debt payments from your income over five years. A small enough leftover still qualifies you for Chapter 7. Otherwise, the filing is presumed abusive, and you’ll need to pursue Chapter 13.5United States Courts. Chapter 7 – Bankruptcy Basics
Understand What Texas Exemptions Protect
Texas lets bankruptcy filers use state exemptions instead of federal ones, and the state list is remarkably protective. This matters two ways: in Chapter 7 the trustee can sell anything not exempt, and in Chapter 13 the value of your non-exempt property sets the floor for what unsecured creditors must be paid under your plan.
Your Home
Texas places no dollar cap on the homestead exemption. A home worth $200,000 or $2 million gets the same protection, provided it sits on 10 acres or less in an urban area, or up to 100 acres for a single person and 200 acres for a family in a rural area.6State of Texas. Texas Property Code Chapter 41 – Interests in Land One catch: if you bought the home fewer than 1,215 days (about three years and four months) before filing, federal law caps the exempt equity at $214,000 unless you rolled proceeds from a prior Texas homestead into the purchase. The homestead exemption does not stop foreclosure by your mortgage lender, property tax authorities, or holders of home equity loans.
Personal Property and Retirement Accounts
Texas caps personal property exemptions at $50,000 for a single filer and $100,000 for a family. That aggregate limit covers home furnishings, clothing, food, tools of a trade, firearms, athletic equipment, a vehicle for each licensed household member, and other listed categories.7State of Texas. Texas Property Code Chapter 42 – Personal Property Retirement accounts (401(k), IRA, pension plans) that qualify for tax exemption under the Internal Revenue Code are separately protected with no dollar cap under Texas law. Cashing them out before filing can strip that protection.
Gather Your Documents and Complete the Forms
Bankruptcy paperwork is detailed, and incomplete filings get dismissed. Pull these together before you start:
- Pay stubs or other proof of income for the last six months
- Your two most recent federal tax returns
- Recent statements for every bank, retirement, and investment account
- Deeds, vehicle titles, and other documentation of what you own and its value
- The name, address, account number, and balance for every debt
Official forms are available on the U.S. Courts website. The core documents are the Voluntary Petition for Individuals Filing for Bankruptcy (Form 101), the Statement of Financial Affairs (Form 107), and schedules covering your property, debts, income, and expenses.8United States Courts. Voluntary Petition for Individuals Filing for Bankruptcy The schedules feed the means test calculation and drive the trustee’s review, so accuracy matters more than speed.
Where and How to File
Texas has four federal bankruptcy districts: Northern, Southern, Eastern, and Western. You file in the district where you’ve lived the greater part of the 180 days before filing.9Office of the Law Revision Counsel. 28 USC 1408 – Venue of Cases Under Title 11 If you moved across district lines recently, count which district had you longer during that window.
The total Chapter 7 fee is $338 ($245 base, $78 administrative, $15 trustee surcharge). Chapter 13 costs $313 ($235 base plus $78 administrative).10Office of the Law Revision Counsel. 28 USC 1930 – Bankruptcy Fees11United States Courts. Bankruptcy Court Miscellaneous Fee Schedule Chapter 7 filers who cannot afford the fee can apply for a full waiver using an official court form.12United States Courts. Application to Have the Chapter 7 Filing Fee Waived Both chapters allow payment in installments with court approval.
Filing With or Without an Attorney
Attorneys file electronically. If you represent yourself, you file in person at the clerk’s office or through a pro se upload portal if your district offers one. Filing without a lawyer is legal, but the forms, exemption strategy, and means test trip up most self-represented filers. Chapter 13 cases filed without an attorney have especially poor outcomes because the repayment plan is a legally binding proposal that must satisfy the bankruptcy code, and courts dismiss plans that don’t comply. If cost is the barrier, many Texas legal aid organizations offer free bankruptcy assistance to low-income filers.
What Happens After You File
The Automatic Stay
The moment your petition hits the docket, an automatic stay takes effect. This federal injunction stops most collection activity: no creditor calls, no wage garnishment, and no foreclosure or repossession proceedings while the stay is active.13Office of the Law Revision Counsel. 11 USC 362 – Automatic Stay
The stay has limits. It does not stop criminal prosecutions, actions to establish or modify child support or alimony, child custody proceedings, most tax audits and assessments, or evictions where the landlord already had a judgment for possession before you filed. Secured creditors (a car lender, for example) can also ask the court to lift the stay if you stop making payments or lack equity in the property.
The 341 Meeting
The U.S. Trustee appoints a private case trustee to oversee your case.14United States Department of Justice. Section 341 Meeting of Creditors In Chapter 7, the trustee identifies non-exempt assets, sells them, and distributes proceeds to creditors. In Chapter 13, the trustee collects your plan payments and distributes them.
About 20 to 40 days after filing, you attend the 341 Meeting of Creditors. Despite the name, creditors rarely show up. The trustee questions you under oath about your petition, assets, and financial situation. The meeting is usually under 10 minutes, but you must attend in person or by phone, and missing it can derail your case.15Office of the Law Revision Counsel. 11 USC 341 – Meetings of Creditors and Equity Security Holders
Finish the Debtor Education Course
Separate from the pre-filing credit counseling, federal law requires a second course (debtor education, sometimes called a financial management course) after your case is filed but before discharge.16United States Department of Justice. Credit Counseling and Debtor Education Information It covers budgeting, money management, and using credit responsibly. Like the pre-filing course, it must come from a government-approved provider, and you receive a certificate to file with the court. In Chapter 7 cases, the deadline is 60 days after the first date set for the 341 meeting. Without the certificate, the court closes your case without granting a discharge, and the entire filing was for nothing.
Debts Bankruptcy Will Not Erase
Bankruptcy does not clear every debt. Federal law carves out categories that survive a Chapter 7 discharge and, in most cases, a Chapter 13 discharge as well:17Office of the Law Revision Counsel. 11 USC 523 – Exceptions to Discharge
- Child support and alimony are never dischargeable.
- Most student loans survive unless you prove “undue hardship” in a separate court proceeding, which is a high bar.
- Income taxes from recent years, and taxes tied to a late or fraudulent return, generally survive.
- Debts obtained through fraud or misrepresentation cannot be discharged.
- Debts for death or personal injury caused by driving while intoxicated are not dischargeable.
- Criminal fines, restitution, and most government penalties survive.
- Debts you leave off your schedules survive if the creditor didn’t learn about the case in time.
Chapter 13 can discharge a few debts that Chapter 7 cannot, including certain property settlement obligations from a divorce and certain debts from willful property damage. If your debt profile is heavy in non-dischargeable categories, review the specific exceptions with an attorney before filing.
Credit Impact and Waiting Periods for Future Filings
A bankruptcy stays on your credit report for up to 10 years from the filing date.18Consumer Financial Protection Bureau. How Long Does a Bankruptcy Appear on Credit Reports? The practical impact fades sooner. Many filers see credit score improvements within a year or two as discharged debts stop dragging down utilization and payment history, though the record itself remains visible to lenders.
If you need to file again, federal law imposes waiting periods between discharges. After a Chapter 7 discharge, you must wait eight years for another Chapter 7 discharge and four years for a Chapter 13 discharge. After a Chapter 13 discharge, you must wait two years for another Chapter 13 discharge and six years for a Chapter 7 discharge, unless you paid at least 70 percent of unsecured claims under a good-faith plan.19United States Bankruptcy Court. Prior Bankruptcy – How Soon Can I Get Another Discharge