You may have experienced a financial hardship and now are deciding whether to file bankruptcy in Texas. We are sorry to hear that you are needing to read this article right now, but our goal is to explain how everything works, so you can decide whether bankruptcy is right for you. Here’s what we’ll cover:
- Filing Bankruptcy in Texas
- Chapter 7 vs Chapter 13 in Texas
- Chapter 7 Bankruptcy Texas
- Chapter 13 Bankruptcy Texas
- Cost of Chapter 7 and Chapter 13 in Texas
- Texas Bankruptcy Assistance
- Texas District, Court, And Trustee Information
- Alternatives to Bankruptcy in Texas
Filing Bankruptcy in Texas
You’ll notice from the table of the contents that we focus specifically on Chapter 7 and Chapter 13 bankruptcy. Why? Because these two types of bankruptcy are the most common bankruptcy in America (source). There are other types such as the Chapter 11 and Chapter 11 subchapter 5 bankruptcies, but these are far less common for consumers (source).
Chapter 7 bankruptcy is also known as the liquidation bankruptcy. Chapter 13 bankruptcy is also known as wage earner’s plan. We will cover these in greater detail
Texas Bankruptcy Filing Process
The bankruptcy filing process in Texas is similar to other states. Generally, the process is as follows for Chapter 7 bankruptcy:
- Understand bankruptcy qualification
- Decide whether to file Chapter 7 or Chapter 13
- Decide whether to hire an attorney
- Take the Credit Counseling Course
- File Bankruptcy Petition and Other Forms
- Texas trustee is assigned to the case
- Attend 341 Meeting of Creditors (Texas court locations below)
- Take Second Mandatory Debt Education Course
- Receive Bankruptcy Discharge
Chapter 7 vs Chapter 13 in Texas
Chapter 7 bankruptcy: In Chapter 7, you are at risk of your nonexempt property being sold and used to pay off debts. It’s generally meant for those who cannot afford to pay little to any of your debt. It’s often less expensive than a Chapter 13 bankruptcy, and you can receive a discharge within 120 days. It stays on your credit report for 10 years.
Chapter 13: In Chapter 13, you reorganize your debts similar to a debt settlement program. Your property above the exemption is often not sold as you may be able to protect your assets. It’s often more expensive than a Chapter 7 bankruptcy, and you generally will receive a discharge in 3 or 5 years. It stays on your credit report for 7 years.
When your debt is discharged, this means that you are not required to pay that debt back.
Chapter 7 bankruptcy Texas
As Chapter 7 is the most common consumer bankruptcy filing, we will cover this bankruptcy first. In order to file Chapter 7 bankruptcy, you have to go through means-testing. The means test was added to the Bankruptcy Code in 2005 to prevent bankruptcy fraud. The income requirement for Texas helps ensure that a person with a sufficient income to pay back some of the debts may file a Chapter 13 instead of Chapter 7.
Texas bankruptcy means test
The first part of the means test is to calculate your current monthly income. A Texas bankruptcy means test calculator can help you estimate whether you qualify for a Chapter 7 below or above the median, which is to say that you may qualify for a Chapter 7 even if your income exceeds the median in Texas, which is why a means test calculator may help.
If you want to do a ballpark estimate, you can estimate your current monthly income by taking the last 6 months of your income and dividing by 6. You will then be able to compare that figure to the Texas means testing data for cases filed on or after May 1, 2020. You would add $9,000 to the annual income for any individuals in the household greater than 9 people.
Means testing for Texas
| # of People | Annual Income |
|---|---|
| 1 | $52,308 |
| 2 | $70,418 |
| 3 | $76,170 |
| 4 | $88,109 |
| 5 | $97,109 |
| 6 | $106,109 |
| 7 | $115,109 |
| 8 | $124,109 |
| 9 | $133,109 |
Texas bankruptcy exemptions
We will cover Texas bankruptcy exemptions next because you may qualify for a Chapter 7 bankruptcy, but wonder whether they are going to come over and try to sell all your assets.
Firstly, in Chapter 7, you may be worried about losing your vehicle (non-luxury). Often a vehicle can be reinstated with a car payment in Chapter 7 bankruptcy in Texas. Here’s a link to the Texas bankruptcy exemptions.
It’s important to note that Texas does also utilize the federal exemptions.
Please also note that you may want to check the Texas government website for a complete list of Texas bankruptcy exemptions and up to date information.
Chapter 13 bankruptcy Texas
Chapter 13 bankruptcy Texas is a payment plan bankruptcy where your debts are reorganized via the bankruptcy court, often in a 3 or 5-year payment plan. One of the most important questions is determining your monthly plan payment. Once you have a sense of your plan payment, you compare that payment to your current monthly obligations to see whether you may afford Chapter 13 bankruptcy. Debt settlement is often an alternative to a Chapter 13 bankruptcy. For a deep dive on Chapter 13 bankruptcy, you may want to check out the article titled Chapter 13 Texas
Chapter 13 Payment
One of the most important things for a Chapter 13 bankruptcy is determining whether you can afford the Chapter 13 plan payment and comparing it to your current monthly obligations. There are various bankruptcy forms that can be used to estimate your Chapter 13 plan payment, but we found the easiest way is to use the Texas Chapter 13 Calculator which uses bankruptcy forms to help estimate plan payment.
Texas Bankruptcy Assistance
You may be wondering what sort of bankruptcy assistance is available in Texas. Let’s go through some of the options.
Texas Legal Assistance:
You may be considering filing bankruptcy in Texas and wondering what sort of legal assistance is available. You may want to check out any of the following options:
Cost of Chapter 7 and Chapter 13 in Texas
Any important question that you are probably asking yourself is what is the cost of attorney fees, filing fees and whatever other costs are associated with bankruptcy.
- Attorney Fee: Often different cities and counties in Texas will have different attorney costs, including variability of cost based on experience. You may want to check out a Texas bankruptcy cost calculator to estimate the cost for your zip code.
- Filing, Admin and/or trustee surcharge fee: The fee for Chapter 7 is $335 and the fee for Chapter 13 is $310 (source).
Texas Districts and Courts
Northern District
- 341 Pine Street, Room 2008
Abilene, TX 79601 - 205 SE 5th Avenue, Room 133
Amarillo, TX 79101-1559 - 1100 Commerce Street, Room 1452
Dallas, TX 75242 - 501 West 10th Street, Room 310
Fort Worth, TX 76102-3673 - 1205 Texas Avenue, Room 209
Lubbock, TX 79401-4091 - 33 E. Twohig Avenue, Room 202
San Angelo, TX 76903-6451 - 1000 Lamar Street, Room 203
Wichita Falls, TX 76301
Southern
- 600 E. Harrison St.
Brownsville, TX 78520 - 1133 N. Shoreline Blvd.
Corpus Christi, TX 78401 - 601 Rosenberg
Galveston, TX 77550 - 515 Rusk Street
Houston, TX 77002 - 1300 Victoria St.
Laredo, TX 78040 - 1701 W. Business Hwy 83
McAllen, TX 78501 - 312 S. Main, Room 406
Victoria, TX 77901
Eastern
- 300 Willow Street Suite 104
Beaumont, Texas 77701 - 104 North Third Street
Lufkin, Texas 75901 - 100 East Houston Street Room 125
Marshall, Texas 75670 - 500 North State Line Avenue
Texarkana, Texas 75501 - 211 West Ferguson Street Room 106
Tyler, Texas 75702
Western
- 2450 State Hwy. 118
Alpine, Texas 79830 - 501 West Fifth Street, Suite 1100
Austin, Texas 78701 - 111 East Broadway, Room L100
Del Rio, Texas 78840 - 525 Magoffin Avenue, Suite 105
El Paso, Texas 79901 - MG Williams Justice Center
Bldg. 5794, Tank Destroyer Blvd. - 200 East Wall, Room 222
Midland, Texas 79701 - 410 South Cedar
Pecos, Texas 79772 - 655 E. Cesar E. Chavez Blvd., Room G65
San Antonio, Texas 78206
Texas Bankruptcy Trustees
Here are the Chapter 7 Bankruptcy Trustees in Texas and the Chapter 13 Bankruptcy trustees in Texas.
Chapter 7 Trustee(s) in Texas
| District | Name | Phone |
|---|---|---|
| Eastern | Diane S. Carter | (972) 422-8377 |
| Eastern | Michelle H. Chow | (214) 521-6627 |
| Eastern | Michael J. McNally | (903) 597-6301 |
| Eastern | Christopher J. Moser | (214) 880-1805 |
| Eastern | Linda S. Payne | (972) 628-4904 |
| Eastern | Joshua P. Searcy | (903) 757-3399 |
| Eastern | Mark A. Weisbart | (972) 628-4903 |
| Eastern | Stephen Joseph Zayler | (936) 634-1020 |
| Northern | Shawn K. Brown | (817) 348-0777 |
| Northern | Anne E. Burns | (214) 573-7343 |
| Northern | James W. Cunningham | (214) 827-9112 |
| Northern | Marilyn D. Garner | (817) 505-1499 |
| Northern | Areya Holder Aurzada | (972) 438-8800 |
| Northern | Myrtle L. McDonald | (806) 792-0056 |
| Northern | Jeffrey H. Mims | (214) 210-2913 |
| Northern | Harvey L. Morton | (806) 762-0570 |
| Northern | Roddrick Newhouse | (469) 777-8560 |
| Northern | Laurie Dahl Rea | (817) 877-4224 |
| Northern | Diane G. Reed | (972) 938-7334 |
| Northern | Kent D. Ries | (806) 242-7437 |
| Northern | Scott M. Seidel | (214) 234-2503 |
| Northern | Daniel J. Sherman | (214) 942-5502 |
| Northern | John D. Spicer | (214) 573-7331 |
| Northern | Behrooz P. Vida | (817) 358-9977 |
| Northern | Robert Yaquinto, Jr. | (214) 942-5502 |
| Southern | Allison Davison Byman | (281) 884-9269 |
| Southern | Catherine S. Curtis | (956) 467-1000 |
| Southern | Eva S. Engelhart | (713) 626-1200 |
| Southern | Christopher R. Murray | (832) 529-3027 |
| Southern | Janet S. Northrup | (713) 328-8233 |
| Southern | Ronald J. Sommers | (713) 960-0303 |
| Southern | Rodney D. Tow | (281) 429-8300 |
| Southern | Randy W. Williams | (281) 884-9262 |
| Western | Ronald E. Ingalls | (830) 321-0878 |
| Western | J. Patrick Lowe | (830) 278-6271 |
| Western | Randolph N. Osherow | (210) 738-3001 |
| Western | Jose C. Rodriguez | (210) 738-8881 |
| Western | Ron Satija | (512) 900-8223 |
| Western | James E. Studensky | (254) 776-9630 |
| Western | Johnny W. Thomas, Jr. | (210) 226-5888 |
Chapter 13 Trustee(s) in Texas
| District | Name | Phone |
|---|---|---|
| Eastern | Carey Ebert | (972) 943-2580 |
| Eastern | Lloyd T Kraus | (903) 593-7777 |
| Eastern | Chapter 13 Standing Trustee | (903) 594-7115 |
| Northern | Pamela A. Bassel | (817) 916-4710 |
| Northern | Lloyd T Kraus | (903) 593-7777 |
| Northern | Thomas D. Powers | (214) 855-9200 |
| Northern | Tim Truman | (817) 770-8500 |
| Northern | Robert B. Wilson | (806) 740-0114 |
| Southern | Cindy Boudloche | (361) 883-5786 |
| Southern | William Heitkamp | (713) 722-1200 |
| Southern | David G. Peake | (713) 283-5400 |
| Western | Stuart C. Cox | (915) 598-7674 |
| Western | G. Ray Hendren, Jr. | (512) 474-6309 |
| Western | Deborah B. Langehennig | (512) 912-0305 |
| Western | Gary W. Norwood | (432) 686-9452 |
| Western | Mary Kathryn Viegelahn | (210) 824-1460 |
Alternatives to Bankruptcy in Texas
You may be reading through this and wondering what are the alternatives to Chapter 7 or Chapter 13 bankruptcy. The most common alternatives are debt management, debt settlement, and debt payoff planning. Each of these options have pros and cons, so doing your due diligence is important. You can also feel free to reach out to us if you have any questions whatsoever.