How To File Bankruptcy for Free in Texas
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Filing for bankruptcy doesn’t have to be scary and confusing. We provide helpful tips and resources to help you file Chapter 7 bankruptcy in your state without a lawyer.
Written by Attorney Andrea Wimmer.
Updated August 20, 2024
Everything’s bigger in Texas: the sunsets, the smiles, the stadiums, the… debts? On average, Texans have among the highest credit card debts in the nation, as well as some of the highest percentages of past-due accounts. Unfortunately, many hard-working Texans are struggling to make ends meet.
Fees and interest can stack up, and even a small balance can spiral out of control quickly. Trying to keep up with the payments can leave you living paycheck to paycheck, which is extremely stressful. Any unplanned expense or unexpected loss of income could force you to take on even more debt. The situation can feel hopeless.
Bankruptcy can give you a way out of the debt spiral. A Chapter 7 case can eliminate most of your debt in a matter of months. A debt-free fresh start can improve not only your financial outlook but also your peace of mind and quality of life. By researching your options, you’re already taking a smart first step to freedom from debt. Even if you can’t afford to hire a lawyer, you can still file your own Texas bankruptcy for free.
How To File Bankruptcy for Free in Texas
When you’re comparing debt-relief alternatives, the cost of filing bankruptcy can be a concern. 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.
Collect Your Texas Bankruptcy Documents
Whether you hire a bankruptcy lawyer, use Upsolve’s free filing tool, or handle your bankruptcy on your own, your first step is gathering all the documents necessary to prepare your case. The bankruptcy forms you’ll file with the court tell the judge your financial story. In these forms, you must provide information about your income and living expenses. You must also list all your debts, including the balance and the creditor’s name and mailing address. You can get most of the information you’ll need from the following documents:
A recent credit report from one or more of the major credit bureaus (TransUnion, Experian, or Equifax). If you’re using the Upsolve app, Upsolve will get a credit report for you.
Bills, collection letters, account statements, and documents from debt-collection lawsuits.
Bank statements for all your checking and savings accounts for the past six months or more.
Tax returns for the past two years.
Pay stubs or a printout from your employer showing your gross pay, all deductions (such as taxes or insurance), and your take-home pay. If possible, try to gather this pay information for the past six months.
It’s OK if you’re missing a few of these. But, at a minimum, you must have pay information for the past 60 days, your last two tax returns, and your most recent bank statement. These documents are required by the Bankruptcy Code and the Texas bankruptcy courts.
Take a Credit Counseling Course
Before you can file bankruptcy in any state, you must complete a credit counseling course from a state-approved provider. This course covers the different types of debt relief available and explains the differences between Chapter 7 and Chapter 13 bankruptcy. The course is required for everyone, even if you’re filing with an attorney.
Most providers offer the course online, by phone, or both. One provider, Money Management International, provides in-person credit counseling courses at its Dallas and San Antonio locations. For now, though, the in-person option is suspended due to COVID-19. The cost of the course usually ranges from $10 to $50. Many providers will waive the course fee if you qualify based on your income.
The course provider will send you a certificate when you complete the course. Keep it in a safe place since you must file the certificate with the court when you submit the rest of your bankruptcy forms. The course certificate expires 180 days after it’s issued. If you don’t file bankruptcy within 180 days after you complete the credit counseling course, you must take it — and pay for it — again before you can file bankruptcy.
Complete the Bankruptcy Forms
For a Chapter 7 bankruptcy, you’ll primarily use the official bankruptcy forms provided by the U.S. Courts. These forms are federal forms, which means they’re the same in every state. You can download these forms as fillable PDFs at no charge. There’s also an official instruction guide that may be helpful. You must download and complete each form individually. Be aware that there are a lot of federal forms available, and not all of them apply to Chapter 7 cases. Only download the forms you need so you don’t waste time with unnecessary paperwork.
If you’re using Upsolve’s app, you don’t need to find and download any forms. Instead, you’ll answer a series of online questions. Upsolve will use the information in your answers to prepare the necessary forms for you. If you’re working with a bankruptcy attorney, you’ll usually fill out a detailed questionnaire. Your lawyer’s office will use the information and documents you provide to complete your bankruptcy forms.
Get Your Filing Fee
The filing fee for a Chapter 7 bankruptcy is $338. In most cases, you’ll pay the filing fee to the court clerk at the same time you file your bankruptcy petition, which is the complete set of forms you fill out. You may need to wait to file your case until you’re able to save up the full filing fee.
Sometimes, you need to file bankruptcy right away, even if you don’t have the full filing fee. For example, if a creditor is garnishing your paycheck, you need the Bankruptcy Code’s automatic stay protection to take effect immediately and stop the garnishment. In these situations, you can apply to pay the filing fee in installments. Installment payments can be risky, though, so use this as a last resort. If you miss one of your payments, the court can dismiss your bankruptcy case. Try to have the whole filing fee when you file your forms if possible.
If your family’s income is less than 150% of the Texas poverty guidelines, you can file an application asking the court to waive your filing fee. Check the Texas Fee Waiver Eligibility table below to see if you qualify.
Print Your Bankruptcy Forms
When you’re ready to file your case, print your completed bankruptcy forms on regular, letter-size (8.5 x 11 inches) white paper. Don’t print double-sided, use colored ink, or staple any of your forms together.
If you downloaded the federal forms individually, you’ll have to print each form as a separate document. This can get a bit confusing, so keep this checklist handy to make sure you have all the right forms in the correct order. Sign your forms using blue or black ink, in every place where a signature is required. If you’re using Upsolve’s filing app, Upsolve will send you all your completed forms, in order, in a single document, including dividers to flag each signature page.
File Your Forms With the Texas Bankruptcy Court
In Texas, the most challenging part of filing your bankruptcy forms might be figuring out where to file them. The Lone Star state is divided into four federal judicial districts. The county you live in determines which district you’ll file in. Each district is divided into separate divisions with separate court locations. You can read about these divisions in more detail a little later in this guide.
After you’ve determined which court location will handle your case, check to see what filing options are available for that location. In general terms, the four districts allow these filing methods:
Eastern District: Only lawyers may access the court’s official electronic filing system, but the Eastern District has introduced a simplified electronic filing option for debtors filing pro se (without an attorney). The court also allows filing in person, by drop box, and by mail.
Northern District: The court allows filing in person, by drop box, and by mail.
Western District: The court allows filing in person and by mail.
Southern District: The court allows filing in person and by mail.
In all districts, if you’re filing by mail or drop box, be sure to include your filing fee payment (or your application for a waiver or installments) with your forms. All districts may have temporary measures in place during the COVID-19 pandemic.
Mail Documents to Your Trustee
When any new Chapter 7 bankruptcy case is filed, the bankruptcy court automatically assigns it to a bankruptcy trustee. If you file your case in person, the court clerk will give you a notice telling you your trustee’s name and contact information when you file your forms. Otherwise, the court will mail you this notice within a day or two after your case is filed.
The trustee’s job is to review your bankruptcy forms to be sure they’re complete and to verify that the information in the forms is accurate. In particular, the trustee must verify that your income and expense information is correct. The Bankruptcy Code requires you to send the trustee the following documents to help them verify your information:
A bank statement that includes the date you filed your bankruptcy case.
Pay information or pay stubs (sometimes called “pay advices”) for the 60 days before the date you filed your case.
Your two most recently filed federal income tax returns.
You must send these documents to your case trustee at least seven days before your 341 meeting (more about that a little later in this guide). Your trustee may also request additional documents. Shortly after you file your case your trustee will usually send you a letter with a list of everything you should send and instructions for where to send it. Don’t file any of these documents with the court since they contain sensitive information.
Take Bankruptcy Course 2
Everyone who files bankruptcy must pass a debtor education course before the court will grant them a bankruptcy discharge. This course, which is sometimes called a financial management course, is designed to help you make the most of your fresh start after bankruptcy. It covers smart money management strategies, common financial pitfalls to avoid, and tips for saving money and improving your credit rating.
You must take the course from a state-approved provider. Most providers offer the course by phone, online, or both. You’ll get a certificate when you finish the course. Use the information on the certificate to complete Form 423, then file the form with the court. Some course providers will file the form and certificate for you.
You can take this course at any time after you file your bankruptcy case, but no later than 60 days after your 341 meeting. If your Form 423 isn’t filed within 60 days after your 341 meeting, the court may close your case without a discharge. Without a discharge, you’ll still owe all your debts.
Attend Your 341 Meeting
Either when you file your bankruptcy forms or a few days later, you’ll receive a notice from the court with the date, time, and location for your 341 meeting. It’s usually on the same notice with your trustee’s information. This meeting typically takes place 21-45 days after you file your bankruptcy case. Usually, most 341 meetings are held in the bankruptcy courthouse, but they aren’t official hearings, and there’s not a judge. Currently, all meetings are being held remotely due to COVID-19. This may change, though.
At your 341 meeting, you’ll meet with your trustee, confirm your identity, and take an oath that the information in your bankruptcy forms is true and correct to the best of your knowledge. The meeting is also a chance for the trustee to clear up any questions they might have about your case. It’s called the 341 meeting because it’s required by Section 341(a) of the Bankruptcy Code. It’s sometimes also called the meeting of creditors. The court will send your creditors a notice about the meeting, but creditors rarely attend.
You must show up to your meeting on time. Federal law requires you to bring a valid government-issued photo ID, like a driver’s license, and proof of your Social Security number with you to the meeting. It may also help to bring a copy of your bankruptcy forms with you in case the trustee has any questions. 341 meetings in Chapter 7 cases usually take less than 10 minutes, although you may have to wait for your case to be called. After the meeting, the court will usually grant your discharge within 60-90 days.
Dealing with Your Car
What happens to your car in Chapter 7 depends on whether you own or lease it, whether it’s paid for, and how much it’s worth. If you’re in a lease, you can keep your car and continue with your regular lease payments. This is called assuming the lease. You must be current on the payments to assume your lease. If your payments aren’t current or you want out of your lease, you can reject the lease. You’ll return the car, and you won’t owe any more fees or payments.
If you’re financing your vehicle and you’re current on your loan payments, you can keep the car and continue to make the usual car loan payments. Your lender may ask you to sign a reaffirmation agreement promising to keep paying. If you’re not current, can’t afford your car note, or owe more than your car is worth, you can choose to surrender the car to the lender. You won’t owe any more payments. After bankruptcy, you can find a car that works with your budget.
If your car is paid for, whether you can keep it depends on what it’s worth and your choice of exemptions (more about exemptions later in this guide). If your car’s value, in its current condition, is higher than the available exemption limits, the trustee can sell the vehicle to pay some of your debts. If you choose federal exemptions, you can apply a maximum of $17,900 to your car (or cars). If you choose state exemptions, the exemption value is unlimited, but there are limits on how many vehicles you can protect.
Texas Bankruptcy Means Test
Bankruptcy courts use the means test to determine whether you have the “means” to pay some or all of your debts. If you do have the means, you don’t qualify to file a Chapter 7 bankruptcy. The first part of the test compares your household’s monthly income to the state median income. If your income is below this threshold, you automatically qualify for Chapter 7. If your income is higher, it doesn’t mean you don’t qualify, just that you’ll need to complete the next part of the test.
The second part of the test calculates how much money you have left each month after subtracting:
Priority debt payments, like child support, alimony, or tax debt;
Secured debt payments, like a car note; and
Living expenses, based on national standards.
If the amount left over is enough to pay at least 25% of your unsecured debt within five years, then you aren’t eligible to file Chapter 7. Instead, the court will convert your case to a Chapter 13 bankruptcy so you can pay some of your debts through a Chapter 13 repayment plan.
Data on Median Income Levels for Texas
Texas Median Income Standards for Means Test for Cases Filed In 2024 | ||
|---|---|---|
| Household Size | Monthly Income | Annual Income |
| 1 | $5,121.67 | $61,460.00 |
| 2 | $6,655.83 | $79,870.00 |
| 3 | $7,486.83 | $89,842.00 |
| 4 | $9,072.17 | $108,866.00 |
| 5 | $9,897.17 | $118,766.00 |
| 6 | $10,722.17 | $128,666.00 |
| 7 | $11,547.17 | $138,566.00 |
| 8 | $12,372.17 | $148,466.00 |
| 9 | $13,197.17 | $158,366.00 |
| 10 | $14,022.17 | $168,266.00 |
Data on Poverty Levels for Texas
Texas Fee Waiver Eligibility for Cases Filed In 2024Eligible for fee waiver when under 150% the poverty level. | ||
|---|---|---|
| Household Size | State Poverty Level | Fee Waiver Limit (150% PL) |
| 1 | $1,255.00 | $1,882.50 |
| 2 | $1,703.33 | $2,555.00 |
| 3 | $2,151.67 | $3,227.50 |
| 4 | $2,600.00 | $3,900.00 |
| 5 | $3,048.33 | $4,572.50 |
| 6 | $3,496.67 | $5,245.00 |
| 7 | $3,945.00 | $5,917.50 |
| 8 | $4,393.33 | $6,590.00 |
| 9 | $4,841.67 | $7,262.50 |
| 10 | $5,290.00 | $7,935.00 |
Texas Bankruptcy Forms
No matter which of Texas’s four bankruptcy districts you’re filing in, most of the forms you’ll use for your Chapter 7 bankruptcy will be federal forms. These forms are the same across every district and every state. That said, each of the four Texas districts has a few local forms and rules that are unique to the district. You can find more information about the forms and requirements for each district in the next section of this guide.
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Texas Districts & Filing Requirements
Texas is home to four federal judicial districts, each with its own separate bankruptcy court system. The county you live in determines which of these districts will handle your bankruptcy case. Each district has its own local rules, forms, and requirements for filers.
Eastern District of Texas Requirements
The Eastern District of Texas Bankruptcy Court serves 43 counties in the eastern part of the state. The district is further divided into six divisions: Beaumont, Lufkin, Marshall, Sherman, Tyler, and Texarkana. The Bankruptcy Court has three primary locations:
Beaumont, which serves the Beaumont and Lufkin divisions.
Plano, which serves the Sherman and Texarkana divisions.
Tyler, which serves the Marshall and Tyler divisions.
The court occasionally holds hearings in secondary locations, but there is no bankruptcy court staff at these locations.
Some noteworthy requirements from the Eastern District’s Local Rules include:
On the bankruptcy forms where you list creditors (Schedules D and E/F), your creditors must be listed in alphabetical order.
You must send a copy of your valid, government-issued photo ID, enlarged to 150% of actual size, to your case trustee along with your other documents, at least seven days before your 341 meeting.
You must create a creditor matrix and file it along with your other bankruptcy forms. A creditor matrix is a list of all your creditors’ names, in alphabetical order, and their mailing addresses. You must use the court’s specific formatting requirements. You must complete and sign a Verification of Matrix form and attach it as the last page of your creditor matrix.
The Eastern District has the following additional local requirements:
Filing methods: The preferred filing method in this district is through its unique Electronic Self-Representation (eSR) portal. The court’s site provides detailed information about how to use eSR. You may also file your forms in person or by mail.
Installment payments: If you’re paying your filing fee in installments, you must submit an initial payment of at least $75 when you file your bankruptcy forms.
Payment methods: The court accepts cashier’s checks or money orders made payable to “Clerk, U.S. Bankruptcy Court.” The court also accepts cash payments.
The court’s website has a section to help debtors who are filing pro se (without a lawyer).
Northern District of Texas Requirements
The Northern District of Texas Bankruptcy Court serves 100 counties in northern and central Texas. The district is further divided into seven divisions: Abilene, Amarillo, Dallas, Fort Worth, Lubbock, San Angelo, and Wichita Falls.
The Bankruptcy Court has four primary locations:
Amarillo, which serves the Amarillo Division.
Dallas, which serves the Dallas and Wichita Falls Divisions.
Fort Worth, which serves the Fort Worth Division.
Lubbock, which serves the Abilene, Lubbock, and San Angelo Divisions.
The court occasionally holds hearings in secondary locations, but there is no bankruptcy court staff at these locations.
Some noteworthy requirements from the Northern District’s Local Rules include:
You must bring a copy of your Social Security card and a valid photo ID issued by the state of Texas with you and present it to the clerk when you file your bankruptcy forms. If you’re filing by mail, include copies of these documents with your forms.
You must create a creditor matrix and file it along with your other bankruptcy forms. A creditor matrix is a list of all your creditors’ names and mailing addresses, in alphabetical order. You must use the court’s specific formatting requirements. You must complete and sign a Verification of Matrix form and attach it as the last page of your creditor matrix.
The Northern District has the following additional local requirements:
Filing methods: You may file your forms in person or by mail.
Installment payments: If you’re paying your filing fee in installments, you must submit an initial payment of at least $50 when you file your bankruptcy forms. You must complete all payments within three months after you file your case.
Payment methods: The court accepts cashier’s checks or money orders made payable to “Clerk, U.S. Bankruptcy Court.” The court also accepts cash.
The court's website has a section to help debtors who are filing without a lawyer
Southern District of Texas Requirements
The Southern District of Texas Bankruptcy Court serves 43 counties in central and western Texas. The district is further divided into seven divisions, with court locations in each division: Brownsville, Corpus Christi, Galveston, Houston, Laredo, McAllen, and Victoria. The bankruptcy court shares these locations with the civil District Court for the Southern District of Texas.
Some noteworthy requirements from the Southern District’s Local Rules include:
On the bankruptcy forms where you list creditors (Schedules D and E/F), your creditors must be listed in alphabetical order.
You must bring a copy of your valid, government-issued photo ID with you and present it to the clerk when you file your bankruptcy forms. If you're filing by mail, include a copy with your forms.
You must send bank statements for the 60 days before you filed your case, as well as the statement that covers the date of filing, to your trustee. You must send your documents to your trustee at least 10 days before your 341 meeting (instead of seven days before). If you don’t get pay stubs, you must complete a declaration form and send it to your trustee along with your other documents.
You must create a creditor matrix and file it along with your other bankruptcy forms. A creditor matrix is a list of all your creditors’ names and mailing addresses, in alphabetical order. You must use the court’s specific formatting requirements.
The Southern District has the following local requirements:
Filing methods: You may file your forms in person or by mail.
Installment payments: This district’s local rules don’t specify any minimum payment amount at the time you file your bankruptcy forms.
Payment methods: The court accepts cashier’s checks or money orders made payable to “Clerk, U.S. Bankruptcy Court.” The court also accepts cash.
The court's website has a section to help pro se debtors.
Western District of Texas Requirements
The Western District of Texas Bankruptcy Court serves 68 counties in central and western Texas. The district is divided into five divisions: Austin, El Paso, Midland, San Antonio, and Waco. The court has staffed locations in each division except Midland. Midland cases are handled at the Austin office.
Some noteworthy requirements from the Western District’s Local Rules include:
You must bring (or mail) one original and one copy of the bankruptcy forms you file with the court. The court has detailed filing requirements for your forms.
You must complete a Pro Se Questionnaire and file it along with your other forms.
You must create a creditor matrix and file it along with your other bankruptcy forms. A creditor matrix is a list of all your creditors’ names and mailing addresses, in alphabetical order. You must use the court’s specific formatting requirements. You must complete and sign a Verification of Matrix form and attach it as the last page of your creditor matrix.
The Western District has the following local requirements:
Filing methods: You may file your forms in person or by mail.
Installment payments: If you’re paying your filing fee in installments, you must pay at least 50% of the filing fee ($169) within seven days after the date you file your bankruptcy forms.
Payment methods: The court accepts cashier’s checks or money orders made payable to “Clerk, U.S. Bankruptcy Court.” The clerk’s office in the San Antonio division accepts cash, but you must have exact change. Cash isn’t accepted at the Austin, El Paso, or Waco offices.
The court provides information for debtors filing without a lawyer.
Texas Bankruptcy Exemptions
In bankruptcy, you can use exemptions to protect all or some of your property from liquidation. If property is exempt, the trustee can’t sell it to pay your debts. If you’ve lived in Texas for less than two years before you file your bankruptcy, you must use the federal exemptions. If you’ve lived in Texas for at least the past two years, you may use either the federal exemptions or the Texas state exemptions. You must choose one set of exemptions or the other, though — you can’t mix and match.
Which set of exemptions is best for you depends on what property you want to protect. For example, under the federal exemptions, you can combine the $4,000 motor vehicle exemption and the $13,900 wildcard exemption to protect up to $17,900 worth of equity in your car or across multiple cars. Under the state exemptions, there’s no dollar limit on vehicle exemptions, but you’re limited to protecting one motor vehicle for each driving-age family member.
Texas Bankruptcy Lawyer Cost
If you decide to hire a bankruptcy attorney to handle your case, you’ll probably be charged a flat rate for the representation. The average rate for a Chapter 7 bankruptcy lawyer in Texas ranges from $975 to $2,000. The fee will depend on the lawyer’s expertise and the complexity of the case. A lawyer’s fee is an important consideration, especially in a Chapter 7 case, but it shouldn’t be the only factor when choosing a lawyer for your case. Most bankruptcy attorneys offer free consultations where you can get some legal advice and see if you’d work well with the attorney.
Texas Legal Aid Organizations
If you don’t feel confident about navigating the Texas bankruptcy process on your own, but you also can’t afford to hire an experienced bankruptcy attorney, a Texas legal aid program could be a good fit. These organizations are located throughout Texas. They typically provide low-cost or free legal services to qualified Texans.
Legal Aid of NorthWest Texas
(817) 649-4740
600 East Weatherford Street, Fort Worth, TX 76102
Lone Star Legal Aid
(713) 652-0077
1415 Fannin Street, Houston, TX 77002
Texas RioGrande Legal Aid, Inc.
(512) 374-2725
301 South Texas Avenue, Mercedes, TX 78570
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Texas Court Locations
Jack Brooks Federal Building and United States Courthouse
409-839-2617
300 Willow Street Beaumont, TX 77701
Wells Fargo Bank Building
972-509-1240
660 North Central Expressway Plano, TX 75074
George H. Mahon Federal Building and United States Courthouse
806-472-5000
1205 Texas Avenue Lubbock, TX 79401
Bentsen Tower
956-618-8065
1701 West Business Highway 83 McAllen, TX 78501
Eldon B. Mahon United States Courthouse
817-333-6000
501 West Tenth Street Fort Worth, TX 76102
Homer Thornberry Judicial Building
512-916-5237
903 San Jacinto Boulevard Austin, TX 78701
J. Marvin Jones Federal Building
806-324-2302
205 East Fifth Avenue Amarillo, TX 79101
Hipolito F. Garcia Federal Building and United States Courthouse
210-472-6720
615 East Houston Street San Antonio, TX 78205
Bob Casey United States Courthouse
713-250-5500
515 Rusk Street Houston, TX 77002
Earle Cabell Federal Building and United States Courthouse
214-753-2000
1100 Commerce Street Dallas, TX 75242
Plaza Tower
903-590-3200
110 North College Avenue Tyler, TX 75702
Texas Judges
Texas Bankruptcy Judges | |
|---|---|
| District | Judge Name |
| Eastern District of Texas | Hon. Judge Bill Parker |
| Eastern District of Texas | Hon. Brenda Rhoades |
| Northern District of Texas | Hon. Barbara J. Houser |
| Northern District of Texas | Hon. Robert L. Jones |
| Northern District of Texas | Hon. Harlin D. Hale |
| Northern District of Texas | Hon. Stacey G. C. Jernigan |
| Northern District of Texas | Hon. Mark X. Mullin |
| Northern District of Texas | Hon. Edward L. Morris |
| Southern District of Texas | Hon. David R. Jones |
| Southern District of Texas | Hon. Jeff Bohm |
| Southern District of Texas | Hon. Marvin Isgur |
| Southern District of Texas | Hon. Jeffrey P. Norman |
| Southern District of Texas | Hon. Eduardo V. Rodriguez |
| Western District of Texas | Hon. Ronald B. King |
| Western District of Texas | Hon. Craig A. Gargotta |
| Western District of Texas | Hon. Christopher Mott |
| Western District of Texas | Hon. Tony M. Davis |
