September 29, 2025 By:
Personal bankruptcy is a legal process under the U.S. Bankruptcy Code that allows individuals to eliminate or restructure overwhelming debt.
In a Chapter 7 bankruptcy proceeding, you have the right to permanently discharge certain debts in exchange for relinquishing non-exempt property to the bankruptcy court. That property is typically sold, with the proceeds going to your creditors. As a practical matter in Texas, because of the state’s generous bankruptcy exemptions, many people who file for protection through Chapter 7 are able to keep all or most of their personal property.
With a Chapter 13 bankruptcy, you have the opportunity to work out new payment arrangements with your creditors, typically paid off over a 3-to-5-year period. Because you’ve worked out new payment arrangements, you’re allowed to keep all your property.
You might benefit from bankruptcy protection if you’re experiencing constant creditor harassment, wage garnishment, threats of vehicle repossession, or risk of foreclosure. Missed mortgage or credit card payments, mounting medical bills, or lawsuits from creditors are also red flags.
Consulting a wage garnishment lawyer early helps you preserve assets and avoid irreversible damage.
Hiring a knowledgeable bankruptcy lawyer in Texas can make the process smoother and far less stressful. Your attorney will start by reviewing your full financial picture, compiling an inventory of income, debts, and assets to help you determine if Chapter 7 or Chapter 13 bankruptcy is the right path. Under current bankruptcy laws, you must qualify to seek protection through Chapter 7 by submitting to a “means test,” whereby you demonstrate whether or not you have the means to repay your creditors over a three-to-five year period. If you do, you cannot file under Chapter 7, but must seek to reorganize your debt through Chapter 13.
Here’s why filing bankruptcy in Texas may work in your favor:
Read Also: Should You Choose Chapter 13 Over Chapter 7 Bankruptcy?
At the Law Office of Carrie L. Weir, we’re here to help you take the right steps and make informed decisions when filing for personal bankruptcy protection. Every potential client receives a free initial consultation, where we evaluate your financial situation and explain your legal options under Texas law.
To schedule an appointment, call 972-772-3083 or contact our office. We proudly serve clients in Rockwall County, Kaufman County, Collin County, Dallas County, Hunt County, and the surrounding areas.
Yes, but it’s not recommended. Bankruptcy laws are complex, and filing incorrectly may result in dismissal or loss of protected assets.
Not necessarily. Texas has liberal homestead exemptions that often allow you to keep your home.
A Chapter 7 bankruptcy remains on your credit record for 10 years; a Chapter 13 filing will appear for 7 years. Many creditors, though, will focus on what you’ve done after the bankruptcy filing. Accordingly, you may be able to start rebuilding your credit within a short period of time, provided you stay current with all your debt.
Yes. Once your bankruptcy case is filed, the court issues an automatic stay, a legal order that temporarily blocks most collection efforts, including wage garnishments and ongoing lawsuits.
Child support arrearages may never be discharged in bankruptcy. Most tax and student loan debt is extremely difficult to discharge.