Filing Bankruptcy in Texas: Chapter 7 and Chapter 13.
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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. If you’re struggling under the heavy load of debt, Texas bankruptcy makes it easy to take action.

You may be considering your options for debt relief. Under bankruptcy law, the two main ways for an individual to eliminate debt are Chapter 7 and Chapter 13 bankruptcy.

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 a local bankruptcy attorney in Texas.

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The Differences in Chapter 7 and Chapter 13 Bankruptcy in Texas

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 through the Chapter 7 discharge.

Both Chapter 7 and Chapter 13 bankruptcy can stop home foreclosure, repossession and lawsuits. Find a local bankruptcy lawyer to get protection today.

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!


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.


  • 100 percent of your wages and personal commissions.


  • 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 to file for bankruptcy and how state 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 or about filing bankruptcy, speak with a Texas bankruptcy lawyer.

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.

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