Texas Bankruptcy Laws
Thinking About Filing Chapter 7 or Chapter 13 Bankruptcy in Texas?
Texas bankruptcy laws offer some of the strongest debt relief and protection in the nation.Take action if you’re struggling under the heavy load of debt.
You may not be aware of all of your debt relief options. For individuals in Texas, two main ways to eliminate debt are Chapter 7 and Chapter 13 bankruptcy.
To learn more about how these bankruptcy laws may help you retire your debt and stay in your home, keep reading. If you’re ready to start working towards a fresh financial start, complete the free case evaluation form on this page and we’ll connect you with local Texas bankruptcy lawyer.
The Differences in Chapter 7 and Chapter 13 Bankruptcy Cases
The Texas Chapter 7 bankruptcy laws offer some of the strongest property protections of any state in the country.
Chapter 7 bankruptcy is often a good option for people with lots of unsecured debt. This is the debt relating to credit cards, medical bills, personal loans and payday loans. This debt may be completely dismissed during Chapter 7 bankruptcy bankruptcy.
But what sets Texas apart, are their healthy exemptions. If your property is covered by a Chapter 7 exemption, then that property cannot be sold to cover your debts. In Texas, your home is completely exempt, as is one car and up to $60,000 worth of property for a family!
Homestead
The full value of your home. Homestead is limited to:
- 200 acres for a family outside a city or town.
- 100 acres for a single adult outside a city or town.
- 10 acres for anyone in a city or town.
Wages
- 100 percent of your wages and personal commissions.
Automobiles
- Full value of one automobile. Note: This value counts towards the $60,000 cap on personal property exemptions.
Personal Property
- Up to $60,000 worth of any personal property, including car, for a family.
- Up to $30,000 worth of any personal property, including car, for a single adult.
- 100 percent of certain health aids and religious books. This exemption doesn’t count towards the total value cap.
To fully understand how bankruptcy laws could affect you and your property, speak with a local bankruptcy attorney.
If you have more property than can be protected with Chapter 7, then Chapter 13 may be an option for you.
Chapter 13 has even more broad property protections, and may be a good fit for those who have some regular, steady income. This form of bankruptcy can provide the breathing room you need to get your financial life in order. The reorganization of Chapter 13 bankruptcy can stop collections from creditors while ordering – and sometimes reducing – your debt.
Learn More About Texas Bankruptcy Law
The information provided here is only an overview. If you need answers to specific questions about your finances, speak with a Texas bankruptcy lawyer.
You’ve gone long enough without someone on your side. A local bankruptcy lawyer may not only provide information, but help you take real action against your debt.
To speak with a Texas bankruptcy lawyer practicing near you, all you need to do is complete the free bankruptcy case evaluation form on this page or call us toll-free at 877-349-1309. We’ll connect you with a local bankruptcy lawyer right away.
Connect with one of our sponsoring Dallas bankruptcy lawyers or a sponsoring Houston bankruptcy attorney.
Note: Keep in mind all laws are complex. If you need legal advice or want to fully understand how these laws affect you, please speak with a local Texas attorney about filing bankruptcy. Laws may have changed since our last update. For the latest information on your state's bankruptcy laws, speak to a local Texas bankruptcy lawyer.