Texas Bankruptcy

Bankruptcy is a federally governed approach for debt relief, allowing for either repayment or discharge under judicial supervision. The federal law governs bankruptcy, but Texas offers certain advantages through its exemption lists. When filing for bankruptcy, you must choose either the Texas exemption or the federal exemption list. The exemptions determine what assets you can retain, especially houses, vehicles, and personal property.

How to File Bankruptcy in Texas

In Texas, individuals filing for bankruptcy may follow through several applicable steps until their case is resolved. To begin the process, you are required to register and complete credit counseling with a court-approved provider. This is typically concluded within 180 days before filing. A debtor education course is mandatory upon filing a bankruptcy case in Texas.

The court typically requests key financial documents from the filer, such as tax returns (last 2 years), 6 months of pay stubs or income verification, including bank statements. Other records required are the lists of assets and debts, real estate deeds, vehicle titles, and lawsuits or garnishments. The exemption system in Texas allows you to select either the state’s or the federal exemption laws for bankruptcy. You may decide to choose chapter 7, which involves liquidation of non-exempt assets.

Also, chapter 11 involves reorganization, while chapter 13 helps you structure a repayment plan. You must submit all required forms, including the petition and schedules to your Texas bankruptcy district. Attorneys may file for bankruptcy electronically, while self-represented litigants may contact the clerk of court for instructions regarding the filing process.

Certain fees are charged before your case may be successfully filed. You may either request an installment or a waiver if you are eligible to reduce court costs. You must attend the §341 meeting of creditors with a valid ID. Trustees may ask you certain questions (informal meeting) regarding your financial situation. You are required to respond to trustee requests and court notices until you receive discharge (Ch. 7) or after the trustee review or complete repayment obligations or plan confirmation/completion (Ch. 11).

Texas Bankruptcy Types: Chapter 7, Chapter 13 & Chapter 11

Texas residents may file under certain bankruptcy types depending on their financial situation and eligibility:

Chapter 7 liquidation

This allows trustees to sell non-exempt assets to pay creditors. Texas exemptions often protect certain assets, including homes and vehicles. Personal property exemptions are capped, as any assets exceeding the exemption limits may be seized and sold by the bankruptcy trustee to repay creditors.

Chapter 13 (repayment)

It allows debts to be reorganized into a 3–5 year repayment plan. It allows debtors to catch up on mortgage or vehicle arrears. Payment plans typically cover the value of non-exempt equity under the selected exemption system.

Chapter 11 (reorganization)

Debtors are allowed to continue operation while planning a payment structure. This is often selected by businesses and individuals who have high debts. Although it offers more flexibility, it involves more complex procedures and higher costs.

Step-by-Step Checklist for Texas Filers

The following is a structured overview of the steps to take when filing for bankruptcy in Texas:

• Complete the required credit counseling course
• Gather financial and asset records
• Choose Chapter 7, 13, or 11 and select Texas or federal exemptions
• File petition and schedules in the proper district
• Pay the standard filing fee or request relief
• Attend the 341 meeting of creditors
• Complete debtor education course
• Respond to trustee or court requests until discharge or payment plan is completed

Texas Bankruptcy Courts & Record Access

Texas is divided into four federal bankruptcy districts. Individuals are required to file their case in the district where venue requirements are met. Each district in Texas maintains official resources for working hours, locations, and access to dockets.

Court Location

• The Northern District of Texas—The clerk’s office in the Dallas division is located at:

Business hours are from Monday through Friday from 8:30 to 4:30. Other divisions in Amarillo, Fort Worth, Lubbock, Abilene, et al., have contact details on their official website.

• The Southern District of Texas has divisions in Houston, Brownsville, Corpus Christi, Galveston, Laredo, and McAllen. Residents may visit the county’s website to find the clerk's contact number and the operation hours. Typically the courthouse is open from 8:00 to 5:00 on Monday to Friday.
• The Eastern District of Texas serves counties across East Texas. The official website provides access to local rules, forms, and contact information for each divisional office serving East Texas counties.
• The Western District of Texas has divisional offices in Austin, San Antonio, El Paso, and Waco. The El Paso division is open from 8:00 a.m. to 12:00 p.m. and 1:00 p.m. to 4:00 p.m. Mountain Standard Time (MST).

Record Access

Individuals may access federal case records online through PACER and the PACER Case Locator. These platforms offer detailed docket information, although for basic case information, bankruptcy district courts have a voice-activated system that enables the public to obtain access.

Records are accessible via the Voice Case Information System (VCIS) or the Multi-Court Voice Case Information System (McVCIS). A phone number is available in which the public may obtain information based on the prompts requested.