Find Bankruptcy Lawyers Near You in Houston, TX

Typical costs for a bankruptcy lawyer in Houston vary by chapter and case complexity. For a straightforward Chapter 7 case, attorney fees generally range from $1,200 to $2,500, with the $338 court filing fee added. Many attorneys charge a flat fee for Chapter 7, paid in installments before filing. For Chapter 13, fees are higher, typically $3,000 to $5,000, because the attorney must prepare a repayment plan and attend multiple court hearings. Chapter 13 fees are often paid through the plan over 3 to 5 years, with no upfront payment required beyond the $313 filing fee.

These figures are general estimates and may not reflect your specific situation. Costs can increase if you have complex assets, business debts, or need to litigate issues like tax debts or student loan discharge. Some Houston attorneys offer free initial consultations to discuss fees and payment options. Pro bono services are available through the Houston Volunteer Lawyers program for qualifying low-income residents. This information is for educational purposes only and does not constitute legal advice. You should consult with a qualified bankruptcy attorney to discuss your specific financial circumstances and costs.

Bankruptcy law in Houston, Texas, provides individuals and businesses a legal pathway to address overwhelming debt. The two primary consumer chapters are Chapter 7 and Chapter 13, while Chapter 11 serves businesses and some high-income individuals. Chapter 7, often called liquidation, discharges most unsecured debts like credit cards and medical bills in exchange for non-exempt assets sold by a trustee. Chapter 13, or reorganization, allows debtors with regular income to propose a 3-to-5-year repayment plan to catch up on secured debts like mortgages or car loans and pay a portion of unsecured debts. Chapter 11 is more complex and costly, typically used by businesses or individuals with debt exceeding Chapter 13 limits (currently $2.75 million in secured and unsecured debt as of 2024). Choosing the right chapter depends on your income, assets, and debt type: Chapter 7 suits those below median income with few assets, while Chapter 13 helps those with steady income who want to keep property or catch up on missed payments.

Texas law offers distinct advantages for bankruptcy filers through generous state-specific exemptions. Unlike many states, Texas does not allow use of the federal exemption system; filers must use Texas exemptions under the Texas Property Code. The Texas homestead exemption is among the most protective in the nation, covering unlimited equity in a homestead (subject to acreage limits: 10 acres in a city or 100 acres in rural areas) as long as the property is designated as your primary residence. For vehicles, Texas exempts up to $15,000 of equity in one motor vehicle per individual, or $30,000 for a married couple filing jointly. Texas also provides a wildcard exemption of up to $60,000 for any personal property (including cash or investments) for a family, or $30,000 for a single adult, under Section 42.001 of the Texas Property Code. Other exemptions include life insurance policies, retirement accounts (ERISA-qualified plans), and up to $30,000 in personal property like household furnishings and clothing. These exemptions mean many Houston residents can file Chapter 7 without losing their home or car.

The means test determines eligibility for Chapter 7 bankruptcy. If your household income is below the Texas median for your family size, you automatically qualify. As of 2024, the median annual income for a single earner in Texas is approximately $63,000; for a family of four, it is about $90,000. If your income exceeds the median, you must complete a detailed calculation of your disposable income over the past six months, subtracting allowed expenses (IRS standard living allowances plus actual housing and transportation costs). If your disposable income is less than $100 per month, you qualify for Chapter 7. If it exceeds $200 per month, you must file Chapter 13. Between $100 and $200, the amount is compared to your total non-priority unsecured debt. This test prevents higher-income filers from abusing Chapter 7. Houston bankruptcy lawyers use local IRS standards for housing and utilities, which vary by county (Harris County has specific allowances for rent and mortgage).

When you file bankruptcy in Houston, an automatic stay immediately goes into effect, stopping all collection actions: creditor calls, wage garnishments, lawsuits, foreclosure sales, and repossessions. This stay remains until the case is closed or the court lifts it. For Chapter 7, the process typically takes 4 to 6 months from filing to discharge. You must complete two mandatory courses: a pre-filing credit counseling session (within 180 days before filing) and a post-filing debtor education course (within 60 days after the first meeting of creditors, also called the 341 meeting). The 341 meeting occurs about 30 days after filing, where the trustee reviews your paperwork and creditors may ask questions. After discharge, the court permanently prohibits creditors from attempting to collect discharged debts. For Chapter 13, the process lasts 3 to 5 years, with monthly payments made to a trustee who distributes funds to creditors. Failure to complete the courses or make plan payments can result in case dismissal.

Costs for bankruptcy in Houston include court filing fees and attorney fees. The federal filing fee for Chapter 7 is $338, and for Chapter 13 it is $313, as of 2024. Attorney fees vary widely: Chapter 7 typically costs between $1,200 and $2,500 for a straightforward case, while Chapter 13 fees range from $3,000 to $5,000 due to the longer process and more paperwork. Many Houston attorneys offer payment plans, allowing you to pay fees in installments before filing. For Chapter 13, attorney fees are often included in the repayment plan and paid through the trustee. Pro bono resources are available through organizations like the Houston Volunteer Lawyers and the State Bar of Texas, which offer free legal clinics for low-income individuals. The U.S. Bankruptcy Court for the Southern District of Texas also provides self-help resources and fee waiver applications for those who cannot afford the filing fee.

Life after bankruptcy requires strategic credit rebuilding. A Chapter 7 discharge stays on your credit report for 10 years from the filing date; a Chapter 13 discharge stays for 7 years. However, you can begin rebuilding immediately after discharge. Secured credit cards, where you deposit cash as collateral, are the most accessible first step. After 12 to 18 months of on-time payments, you may qualify for unsecured cards with higher limits. Some debts survive bankruptcy: most student loans (unless you prove undue hardship in an adversary proceeding), recent tax debts (income taxes less than 3 years old or assessed within 240 days), child support, alimony, and debts from fraud or intentional harm. In Texas, property taxes and HOA fees may also survive in certain circumstances. Bankruptcy does not stop criminal proceedings or DWI fines. With disciplined budgeting and credit monitoring, many Houston residents see credit scores improve within 2 to 3 years post-discharge, often qualifying for mortgages or auto loans after 2 years (FHA loans require 2 years post-discharge).