Texas Bankruptcy Laws

Federal filing fee for Chapter 7 bankruptcy. Fee waivers available for qualifying low-income filers.

Federal filing fee for Chapter 13 bankruptcy.

You must complete credit counseling from an approved agency within 180 days before filing and a debtor education course before discharge.

Chapter 7 filers must pass a means test comparing their income to Texas's median income. Texas's cost of living varies significantly by region, which affects the median income calculations.

Protects your primary residence with unlimited value, as long as it sits on 10 or fewer acres in a city/town or 100 acres (200 for families) in a rural area. This is one of the most generous homestead exemptions in the country.

Protects up to $50,000 in personal property for a single person ($100,000 for a family), including home furnishings, clothing, food, farming equipment, tools of trade, one motor vehicle per licensed household member, and other specified items.

IRAs, 401(k)s, pensions, annuities, and other qualified retirement accounts are fully exempt from creditors in Texas bankruptcy, with no dollar limit.

Texas has some of the strongest wage protections in the country. Current wages cannot be garnished for most debts. Exceptions include child support, student loans, taxes, and court-ordered restitution.

Texas does not allow bankruptcy filers to choose federal exemptions. You must use the Texas state exemption system, which is generally more generous than the federal exemptions, particularly for homestead and retirement accounts.