Bankruptcy Law in Texas


Bankruptcy law in Texas provides relief for individuals and businesses facing insurmountable debt. It allows debtors to eliminate or repay debts under the protection of the bankruptcy court.


1. What is bankruptcy?

   Bankruptcy is a legal process that helps individuals and businesses eliminate or repay debts under the protection of the bankruptcy court.

2. What are the different types of bankruptcy?

   The most common types are Chapter 7 (liquidation), Chapter 13 (repayment plan for individuals), and Chapter 11 (reorganization for businesses).

3. How do I file for bankruptcy in Texas?

   To file for bankruptcy, you must complete credit counseling, petition the bankruptcy court, and submit the required documentation of your financial situation.

4. What debts can be discharged in bankruptcy?

   Debts that can typically be discharged include credit card debt, medical bills, and personal loans. Some debts, like student loans and child support, are usually not dischargeable.

5. What is the means test for Chapter 7 bankruptcy?

   The means test determines eligibility for Chapter 7 bankruptcy by comparing your income to the median income in Texas. If your income is below the median, you may qualify.

6. What happens to my assets in a Chapter 7 bankruptcy?

   In Chapter 7 bankruptcy, a trustee may sell non-exempt assets to pay creditors. Texas law provides exemptions that protect certain property from being sold.

7. Can bankruptcy stop foreclosure or repossession?

   Filing for bankruptcy can temporarily halt foreclosure or repossession through an automatic stay, which prevents creditors from pursuing collection actions during the bankruptcy process.