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Bankruptcy

Bankruptcy is a court-supervised legal process that helps people who can no longer pay their debts get a fresh start by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect financially troubled businesses.

In Texas, bankruptcy is governed by both federal law and state-specific statutes. The U.S. Bankruptcy Code provides the framework for bankruptcy proceedings and is applicable in all states, including Texas. Individuals and businesses in Texas can file for bankruptcy under several chapters of the Bankruptcy Code, the most common being Chapter 7 (liquidation) and Chapter 13 (reorganization for individuals) or Chapter 11 (reorganization for businesses). Texas law complements federal law by determining property exemptions that debtors can claim. These exemptions allow debtors to keep certain assets out of the bankruptcy estate, such as a portion of the equity in their home (homestead exemption), personal property, and retirement accounts, among others. Texas has generous exemption laws compared to many other states, which can provide additional protection for a debtor's assets during bankruptcy. It's important for individuals and businesses considering bankruptcy to consult with an attorney to understand how these laws apply to their specific situation and to navigate the complex bankruptcy process.

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State Statutes

adversary proceeding assumption of contracts, leases automatic stays

Chapter 11 bankruptcy Chapter 12 bankruptcy Chapter 13 bankruptcy Chapter 13 bankruptcy — confirmation hearing Chapter 13 bankruptcy — disposable income Chapter 13 bankruptcy — eligibility Chapter 13 bankruptcy — repayment plan Chapter 7 bankruptcy Chapter 7 bankruptcy — changing trustee Chapter 7 bankruptcy — conversion to chapter 11, 12, or 13 Chapter 7 bankruptcy — discharge Chapter 7 bankruptcy — eligibility Chapter 7 bankruptcy — means test Chapter 7 bankruptcy — no assets cosignors courts creditor claims — secured, unsecured, priority

debtor in possession

estate exemptions

hardship discharges homestead exemption

involuntary bankruptcy

liquidation

nondischargeable debt nondischargeable debt — alimony nondischargeable debt — child support nondischargeable debt — fraud nondischargeable debt — student loans

petition preferential transfer priority debt proof of claim

reaffirmation of debt reorganization plan

section 341 meeting of creditors statement of financial affairs

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Understanding the Different Personal Bankruptcy Chapters

At some point in life, many of us will face financial hardships. When debt becomes overwhelming, one potential avenue of relief is filing for personal bankruptcy.

Understanding Personal Bankruptcy: Types, Eligibility, and Consequences

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Bankruptcy

Individual & Family Legal Plan

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Texas State Code

Texas State Code

Bankruptcy

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