Chapter 7
Chapter 7 discharges most unsecured debt in roughly four to six months. You must pass a means test based on your household income compared with the Texas median.
Chapter 13
Chapter 13 restructures debt into a three to five year repayment plan. It is often used to catch up on a mortgage arrearage or to keep property that would not be exempt in Chapter 7.
Texas exemptions are generous
Texas offers an unlimited homestead exemption on acreage limits (10 urban acres; 100 rural acres for a single adult or 200 rural acres for a family), plus personal property exemptions covering vehicles, tools of the trade and retirement accounts. Many Texans keep their home and car through bankruptcy.
This article is general legal information, not legal advice.
Sources & further reading
- Texas Property Code Chapter 41 (Homestead) — Texas Legislature
Lawyer Direct provides general legal information for educational purposes. This content is not legal advice and does not create an attorney-client relationship. Laws and individual circumstances vary.