Texas Bankruptcy Guide

Complete guide to filing bankruptcy in Texas, including current median income requirements, the state's generous homestead exemption, bankruptcy court information, and how to find qualified bankruptcy attorneys in Texas.

Texas Median Income for Bankruptcy (2026)

To qualify for Chapter 7 bankruptcy in Texas, your household income must be below these median income levels. If your income exceeds these amounts, you may still qualify through the means test or need to file Chapter 13 instead.

Household Size	Annual Median Income	Monthly Median Income
1 person	$58,613	$4,884
2 people	$75,782	$6,315
3 people	$83,740	$6,978
4 people	$96,662	$8,055
5 people	$105,662	$8,805
6 people	$114,662	$9,555

Note: For households larger than 4, add $9,000 per additional person. These figures are updated annually by the U.S. Trustee Program.

Calculate Your Texas Eligibility

Texas Bankruptcy Exemptions

Texas has some of the most generous bankruptcy exemptions in the United States, particularly for homestead property. Texas filers must use state exemptions and cannot choose federal exemptions.

Texas Homestead Exemption

Unlimited value on up to 10 acres in urban areas or 200 acres in rural areas (100 acres for single filers in rural areas).

Texas offers one of the strongest homestead protections in the nation. There is no dollar limit on the value of your home, but there are acreage limits. This means you can protect a multi-million dollar home as long as it's on 10 acres or less in a city or town, or 200 acres or less in a rural area. The property must be your primary residence and you must have owned it for at least 1,215 days (approximately 40 months) before filing bankruptcy.

Texas Vehicle Exemption

One vehicle per licensed household member, unlimited value.

Texas allows you to protect one vehicle per person with a valid driver's license in your household, with no dollar limit on the vehicle's value. This is another extremely generous exemption compared to most other states.

Other Key Texas Exemptions

• Personal Property: Up to $50,000 for a family or $25,000 for a single person for furniture, clothing, athletic equipment, jewelry (limited to 25% of total), and two firearms
• Tools of Trade: Farming or ranching vehicles and equipment, tools, equipment, books, and apparatus for trade or profession
• Retirement Accounts: Fully protected including 401(k), IRA, pension plans, and government retirement benefits
• Insurance: Life insurance proceeds, cash value, and annuities are exempt
• Wages: Current wages for personal services, except for child support enforcement
• Public Benefits: Unemployment, workers' compensation, crime victims' compensation, and public assistance

Filing Bankruptcy in Texas

Chapter 7 Bankruptcy in Texas

Chapter 7 bankruptcy is the most common type filed in Texas. It typically takes 3-4 months from filing to discharge and eliminates most unsecured debts like credit cards, medical bills, and personal loans. Thanks to Texas's generous exemptions, many filers can keep their home, vehicles, and personal property.

To qualify for Chapter 7 in Texas, you must pass the means test by having income below the state median or by showing you don't have enough disposable income to fund a Chapter 13 repayment plan. You must also complete credit counseling from an approved agency within 180 days before filing.

Learn more about Chapter 7 bankruptcy →

Chapter 13 Bankruptcy in Texas

Chapter 13 bankruptcy allows Texas residents to keep property while repaying some or all of their debts through a 3-5 year payment plan. This chapter is particularly useful if you're behind on mortgage or car payments and want to catch up while stopping foreclosure or repossession.

Chapter 13 is also beneficial if your income is too high to qualify for Chapter 7, if you have non-exempt assets you want to protect, or if you have debts that can't be discharged in Chapter 7 (like recent tax debts). Your monthly payment is based on your disposable income after subtracting allowable expenses.

Learn more about Chapter 13 bankruptcy →

Bankruptcy Courts in Texas

Texas is divided into four federal bankruptcy court districts, each with multiple court locations:

Eastern District of Texas

Main Courthouse: Dallas (also serves Sherman, Tyler, Plano)

Covers the eastern portion of Texas including Dallas, Tyler, Sherman, Texarkana, Marshall, Beaumont, and Lufkin areas.

Northern District of Texas

Main Courthouses: Fort Worth, Dallas, Amarillo, Lubbock

Covers the northern portion of Texas including Fort Worth, Amarillo, Lubbock, Wichita Falls, Abilene, and San Angelo areas.

Southern District of Texas

Main Courthouses: Houston, Corpus Christi, Brownsville, McAllen, Galveston, Laredo, Victoria

Covers the southern portion of Texas including the Houston metro area, Galveston, Corpus Christi, Brownsville, McAllen, and Laredo areas.

Western District of Texas

Main Courthouses: San Antonio, Austin, El Paso, Waco, Midland

Covers the western portion of Texas including San Antonio, Austin, El Paso, Waco, Midland, Odessa, and Del Rio areas.

You must file in the district where you have lived for the greater part of the 180 days before filing. Visit the U.S. Courts website for specific court locations, filing procedures, and local rules.

Texas Residency Requirements

To use Texas bankruptcy exemptions, you must have been domiciled (legally residing) in Texas for at least 730 days (2 years) before filing. If you've lived in Texas for less than 2 years, you may need to use the exemptions from the state where you lived for the 180 days immediately before the 2-year period.

Additionally, to claim the full homestead exemption, you must have owned your Texas homestead for at least 1,215 days (approximately 40 months) before filing bankruptcy.

Find a Texas Bankruptcy Attorney

Most Texas bankruptcy attorneys offer free consultations. Given Texas's unique exemption laws and generous homestead protections, consulting with a Texas bankruptcy attorney is highly recommended to maximize the benefits available to you.

What a Texas Bankruptcy Attorney Can Do

• Determine which bankruptcy chapter is right for your situation
• Help you maximize Texas's generous exemptions to protect your assets
• Ensure you meet all Texas-specific residency and homestead requirements
• Complete and file all required paperwork correctly
• Represent you at the 341 meeting of creditors
• Handle any objections from creditors or the trustee
• Guide you through the entire bankruptcy process from filing to discharge

Cost of Filing Bankruptcy in Texas

Chapter 7 bankruptcy attorney fees in Texas typically range from $1,200 to $2,000, plus a $338 court filing fee. Chapter 13 fees are usually $3,000 to $4,000, plus a $313 filing fee, though attorney fees in Chapter 13 are often paid through your repayment plan.

Many Texas attorneys offer payment plans to make bankruptcy more affordable.

Texas-Specific Bankruptcy FAQs

Can I keep my house in a Texas bankruptcy?

Yes, in most cases. Texas has one of the most protective homestead exemptions in the country. You can keep a home of unlimited value as long as it's on 10 acres or less in an urban area or 200 acres or less in a rural area (100 acres for single filers). You must have owned the property for at least 1,215 days before filing.

Can I keep my car in a Texas bankruptcy?

Yes. Texas allows you to exempt one vehicle per licensed driver in your household with no dollar limit. This means you can keep even expensive vehicles as long as each licensed driver in your home has only one vehicle.

Do I have to use Texas exemptions?

Yes. Unlike some states, Texas does not allow filers to choose federal bankruptcy exemptions. You must use Texas state exemptions, though these are generally more generous than federal exemptions for most assets.

How long does bankruptcy stay on my credit in Texas?

Chapter 7 bankruptcy remains on your credit report for 10 years from the filing date. Chapter 13 remains for 7 years. However, many Texas residents see their credit scores begin to improve within 1-2 years after filing as they rebuild their credit history.

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