In short: Machi Wright & Associates answers common Texas bankruptcy questions for Arlington, Fort Worth, and Dallas residents. Chapter 7 discharges qualifying unsecured debt; Chapter 13 reorganizes debt over 3–5 years. Free consultations: 817-335-8880.
What is Chapter 7 bankruptcy in Texas?
Chapter 7 is a federal liquidation bankruptcy that can discharge most unsecured debt — credit cards, medical bills, and personal loans — if you pass the Texas means test. Most cases finish in 4–6 months after filing.
What is Chapter 13 bankruptcy in Texas?
Chapter 13 is a reorganization bankruptcy. You pay into a 3–5 year plan administered by your division’s Chapter 13 trustee. It is often used to stop foreclosure and cure mortgage arrears while keeping your home.
What is the difference between Chapter 7 and Chapter 13?
Chapter 7 focuses on discharging unsecured debt quickly if you qualify. Chapter 13 reorganizes debt into an affordable monthly plan and protects secured property like your home and car from foreclosure or repossession.
What is a bankruptcy discharge?
A discharge is a court order that releases you from personal liability on qualifying debts. After discharge, creditors covered by the order cannot collect those debts.
What is the means test in Texas?
The means test compares your household income to the Texas median for your household size. If your income is below the median, you may qualify for Chapter 7. If above, Chapter 13 may still be available.
Will bankruptcy stop foreclosure in Texas?
Filing triggers an automatic stay that halts most collection actions, including a scheduled foreclosure sale. Chapter 13 lets many homeowners cure mortgage arrears over 3–5 years.
Will bankruptcy stop wage garnishment?
Yes — the automatic stay stops most garnishments when you file. Chapter 7 may discharge the underlying debt; Chapter 13 can reorganize it.
Can I keep my house and car in bankruptcy?
Texas exemptions protect significant home equity and personal property. Many filers keep their home and car in Chapter 13; Chapter 7 filers may keep them if they are current and within exemption limits.
Where do I file bankruptcy in Arlington or Fort Worth?
Tarrant County residents file in the Fort Worth Division at the Eldon B. Mahon U.S. Courthouse, 501 W. 10th St., Fort Worth 76102. Chapter 13 trustee: Pam Bassel.
Where do I file bankruptcy in Dallas?
Dallas County residents file in the Dallas Division at the Earle Cabell Federal Building, 1100 Commerce St., Dallas 75242. Chapter 13 trustee: Thomas D. (Tom) Powers.
How do I get started?
Call 817-335-8880 or visit our contact page.
Related: Arlington bankruptcy · Fort Worth bankruptcy · Dallas bankruptcy · Chapter 7 · Chapter 13 · Bankruptcy overview