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Frequently Asked Questions about Bankruptcy in Texas

bankruptcy in Texas

The process and regulations for filing bankruptcy are governed by federal law, so the basic elements of filing are similar in every state. At Daic Law, we are commonly asked about the process of filing for bankruptcy in Texas. The variety of questions as unique as the individuals asking. Here is our top list of frequently asked questions about bankruptcy in Texas to help our readers learn more.

Frequently Asked Questions about Bankruptcy in Texas

Q: What types of bankruptcy are there?

A: The different types of bankruptcy are classified by Chapter, such as:

Chapter 7

Personal bankruptcy allowing the debtor (person filing) to liquidate (sell) assets in order to pay debts. Also called “straight” bankruptcy. This is the most common type of bankruptcy for individuals or families. With Chapter 7, you can resolve debts like medical debt, credit card debt, or other unsecured debts. You can’t discharge student loans or tax debts, however.

Chapter 11

Mostly used by businesses, Chapter 11 reorganizes debts of businesses or individuals with a lot of debt. With Chapter 11, businesses develop a plan to pay back their debts while continuing to operate. The court and creditors must agree to the plan.

Chapter 12

Restricted to family farmers and fishermen. Chapter 12 helps farmers and fishermen resolve debt without having to sell their assets or foreclose on property. It is similar to Chapter 13, but has more flexibility.

Chapter 13

Allows the debtor to create a plan for repaying debts based on current income. Chapter 13 is a common type of bankruptcy for individuals who need to reorganize their debt rather than simply discharging it. With Chapter 13, you agree to pay back a certain amount of debt over a period of time. The payment amount depends on your income and other factors.

Q: Which type of bankruptcy should I choose?

A: The type of bankruptcy that is right for you will depend on your individual situation. The two most commonly filed forms of bankruptcy are Chapter 7 and Chapter 13. To decide which option is best for you, contact a bankruptcy attorney to discuss your financial situation.

Q: Where do I file bankruptcy?

A: Bankruptcies in Texas are filed in one of four U.S. bankruptcy courts in the state. Depending on where you live, you will file bankruptcy in:

  • Northern District: Including Amarillo, Dallas, Fort Worth, and Lubbock.
  • Southern District: Including Houston, Galveston, Laredo, and Corpus Christi.
  • Eastern District: Including Tyler, Plano, and Beaumont.
  • Western District: Including Austin, San Antonio, El Paso, and Waco.

Q: How much does bankruptcy cost?

Bankruptcy court gavel
Frequently Asked Questions about Bankruptcy in Texas

A: The fees for filing bankruptcy may vary depending on your attorney. There are standard fees dictated by the court, but every attorney has different fees for preparing and filing documents.

Q: Will I lose my home or car if I file bankruptcy?

A: In Texas, filing bankruptcy allows exemptions, which are items or property that cannot be included in the filing. In most cases, your home, car, and necessities will be exempt. If you are making payments on a home or car loan, you will still be liable for these debts after filing bankruptcy.

Q: Will I have to go to court during bankruptcy?

A: Yes and no. Most people filing bankruptcy only have to attend a “meeting of creditors”, which is a meeting attended by you, the bankruptcy trustee, and creditors, if applicable. You will need to answer a few simple questions, and will have time to dispute debts if you choose. Disputed or complicated cases may require resolution before a judge, in which case you would get a notice for a court appearance.

Q: Do I need an attorney?

A: The simple answer is: Yes! Because filing bankruptcy has an affect on your finances, credit, and lifestyle, you want to make sure an attorney manages the process in your best interests. Having an attorney by your side can help ensure that your rights are protected and you get the best outcome possible for a fresh start.

Contact Daic Law

If you have questions about bankruptcy, debt collection lawsuits, debt defense, or consumer protection laws, contact Daic Law. Let our debt defense lawyers help you find the best options for resolving your debt issues while protecting your legal rights. Call us at 877-893-6040, or email us at


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