Make Legal Texas Bankruptcy Forms For Free

In most respects, filing for bankruptcy in Texas isn't different from filing in another state. The bankruptcy process falls under federal law, not Texas state law, and works by unwinding the contracts between you and your creditors. That's what gives you a fresh start.

Also called "straight" or "liquidation" bankruptcy, Chapter 7 allows you to discharge most, if not all, of your debt. In order to qualify for this form of bankruptcy you must pass the means test showing that you do not have enough disposable income to repay your debts.

You will be eligible to file for Chapter 7 if your current income falls below the median income level. Should your income be above the median, you will be allowed to deduct payments and expenses from secured debts, in order to try and qualify. In Texas the median income for a single person is currently set at $39,673.

Attorney fees usually make up the biggest part of this cost. The good news is that you don't have to hire a lawyer to file bankruptcy in Texas. This guide walks you through each step of the Chapter 7 bankruptcy process and what you can expect along the way.

There is no minimum debt to file bankruptcy, so the amount does not matter. Examples of unsecured debts include credit card debt, cash advance (payday) loans, and medical bills. Secured debts: If you are behind on a house or car payment, this may be a very good time to file for bankruptcy.

Bankruptcy doesn't have a minimum debt requirement?you'll decide whether filing makes sense for you. You don't need a particular amount before filing for bankruptcy. Having a minimum requirement might encourage people to go deeper into debt, and that's not something bankruptcy courts would want to do.