Find Bankruptcy Lawyers Near You in Georgetown, TX

Typical costs for a bankruptcy lawyer in Georgetown, Texas, include attorney fees and court filing fees. For a straightforward Chapter 7 case, attorney fees generally range from $1,200 to $2,500, with the $338 court filing fee paid separately. Chapter 13 cases involve higher attorney fees, typically between $3,000 and $5,000, due to the longer duration and more complex paperwork, and the filing fee is $313. Many lawyers offer flat-fee arrangements for Chapter 7 and may allow installment payments before filing, while Chapter 13 fees can sometimes be included in the repayment plan approved by the court.

Payment plan options vary by firm, but most require full payment of attorney fees before a Chapter 7 case is filed. For Chapter 13, fees are often paid through the plan over three to five years. Low-income residents may access pro bono services through Texas RioGrande Legal Aid, which serves Williamson County. This information is general and does not constitute legal advice; individuals should consult a licensed attorney for specific cost estimates and payment options.

Bankruptcy law in Georgetown, Texas, offers individuals and businesses a legal pathway to address overwhelming debt through federal court proceedings. The two most common chapters for individuals are Chapter 7, known as liquidation bankruptcy, and Chapter 13, a reorganization plan for those with regular income. Chapter 7 allows debtors to discharge most unsecured debts, such as credit cards and medical bills, by selling non-exempt assets to pay creditors. Chapter 13, on the other hand, requires a three-to-five-year repayment plan based on disposable income, allowing debtors to keep their property while catching up on missed mortgage or car payments. For businesses, Chapter 11 provides a more complex reorganization process, often used by corporations or high-income individuals who exceed Chapter 13 debt limits. Determining which chapter is right depends on factors like income level, asset value, debt type, and long-term financial goals, making professional legal guidance essential.

Texas law provides specific exemptions that significantly impact what property a debtor can keep in bankruptcy. Unlike many states, Texas does not allow debtors to choose between state and federal exemptions; instead, Texas law mandates the use of its own exemption system. The Texas homestead exemption is among the most generous in the nation, protecting an unlimited amount of equity in a primary residence, provided the property is on one acre in an urban area like Georgetown or up to 100 acres in a rural setting. For vehicles, Texas exempts up to $15,000 of equity in one motor vehicle per licensed household member. The Texas wildcard exemption, codified in Section 42.002 of the Texas Property Code, allows debtors to protect up to $60,000 of any personal property, including cash or bank accounts, for a family or $30,000 for a single adult. Other exemptions include household furnishings, clothing, and tools of the trade, all subject to specific statutory limits. These exemptions are critical for Georgetown residents to understand, as they determine what assets remain after a Chapter 7 liquidation or how much must be paid to unsecured creditors in a Chapter 13 plan.

The means test is a mandatory calculation that determines eligibility for Chapter 7 bankruptcy. This test compares the debtors household income over the six months before filing to the median income for a household of the same size in Texas. As of 2025, the median income for a single-person household in Texas is approximately $62,000, for a two-person household about $76,000, for a three-person household around $86,000, and for a four-person household roughly $100,000. If the debtors income falls below the median, they automatically qualify for Chapter 7. If income exceeds the median, the means test deducts allowed expenses, such as housing, transportation, and food, based on IRS standards. If disposable income remains after these deductions, the debtor may be presumed to have the ability to repay creditors and may be required to file Chapter 13 instead. The calculation is detailed and unforgiving, often requiring careful documentation of income sources and expenses. Georgetown residents with irregular income, such as self-employed individuals or seasonal workers, should work closely with a lawyer to ensure accurate computation.

When a bankruptcy case is filed, an automatic stay immediately goes into effect, stopping all collection activities, including phone calls from creditors, wage garnishments, foreclosure proceedings, and lawsuits. This protection provides immediate relief and breathing room for debtors to reorganize their finances. The timeline from filing to discharge varies by chapter. In a Chapter 7 case, the process typically takes three to six months, beginning with the filing, followed by a meeting of creditors (also called a 341 meeting) about 30 days later, and ending with a discharge order. Chapter 13 cases last three to five years, during which the debtor makes monthly payments to a court-appointed trustee. Mandatory credit counseling must be completed within 180 days before filing, and a debtor education course must be taken after filing but before discharge. Both courses are offered by approved providers and typically cost between $10 and $50 each. Failure to complete either course can result in case dismissal, so Georgetown residents should schedule these early.

The costs of filing bankruptcy in Georgetown include court filing fees and attorney fees. As of 2025, the filing fee for Chapter 7 is $338, and for Chapter 13 it is $313, payable to the U.S. Bankruptcy Court for the Western District of Texas. Attorney fees for Chapter 7 cases in the Georgetown area typically range from $1,200 to $2,500, depending on case complexity, while Chapter 13 attorney fees are higher, often between $3,000 and $5,000, because of the extended duration and additional paperwork. Many bankruptcy lawyers offer payment plans, allowing clients to pay fees in installments before filing. For those with very low income, pro bono resources are available through organizations such as Texas RioGrande Legal Aid, which serves low-income residents in Williamson County. Additionally, the U.S. Bankruptcy Court provides a list of approved credit counseling agencies that offer reduced-fee services. It is important to note that attorney fees must be paid in full before the case is filed in Chapter 7, though Chapter 13 fees can sometimes be included in the repayment plan.

Life after bankruptcy requires strategic planning to rebuild credit and financial stability. A Chapter 7 discharge remains on a credit report for 10 years from the filing date, while a Chapter 13 case stays for 7 years. During this time, debtors can begin rebuilding credit by obtaining secured credit cards, making on-time payments on any reaffirmed debts, and keeping credit utilization low. Many individuals see their credit scores improve within two to three years after discharge by adopting responsible habits. However, not all debts are dischargeable. Student loans are presumptively non-dischargeable unless the debtor can prove undue hardship in an adversary proceeding, which is difficult to win. Most tax debts are also non-dischargeable, especially income taxes less than three years old or those where the debtor filed a fraudulent return. Child support and alimony obligations survive bankruptcy entirely, as do debts for personal injury caused by drunk driving. Georgetown residents should also be aware that reaffirming a debt, such as a car loan, means they remain personally liable even after discharge, so careful consideration is needed.