How To File Bankruptcy for Free in Texas

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.

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

Data on Poverty Levels for Texas

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.

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.

Texas Court Locations

Texas Judges

Texas Trustees