Find Bankruptcy Lawyers Near You in McKinney, TX

The typical cost for a bankruptcy lawyer in McKinney, Texas includes both attorney fees and court filing fees. For a Chapter 7 case, attorney fees generally range from $1,200 to $2,500, while Chapter 13 cases cost between $3,000 and $5,000 due to the complexity of repayment plan preparation and ongoing court oversight. The court filing fee is $338 for Chapter 7 and $313 for Chapter 13, and these fees must be paid at the time of filing or through an installment plan approved by the court. Many lawyers offer payment plans that allow you to pay attorney fees over several months before filing, and some provide reduced fees for veterans, seniors, or low-income clients. Pro bono assistance is available through Legal Aid of NorthWest Texas for those who qualify based on income and assets.

This information is for general educational purposes only and does not constitute legal advice. Bankruptcy laws and fees are subject to change, and individual circumstances vary significantly. You should consult with a qualified bankruptcy lawyer in McKinney to obtain advice tailored to your specific financial situation.

Bankruptcy law provides individuals and businesses in McKinney, Texas with a legal pathway to address overwhelming debt and obtain a financial fresh start. The two most common chapters for individuals are Chapter 7 and Chapter 13, while Chapter 11 serves businesses and some high-income individuals. Chapter 7, often called liquidation bankruptcy, allows you to discharge most unsecured debts like credit cards and medical bills in exchange for non-exempt assets being sold by a trustee. Chapter 13, known as reorganization bankruptcy, requires you to propose a three-to-five-year repayment plan to pay back some or all of your debts, making it suitable for those with regular income who want to keep their property. Chapter 11 is typically used by businesses to restructure debts and continue operations, though it is also available for individuals with debts exceeding Chapter 13 limits. Choosing the right chapter depends on your income, assets, debt amount, and financial goals, and a bankruptcy lawyer in McKinney can help evaluate your specific situation.

Texas law offers unique protections that significantly impact bankruptcy filings in McKinney. Unlike many states, Texas does not allow you to use federal exemptions; you must use the Texas state exemption system. The Texas homestead exemption is one of the most generous in the nation, protecting an unlimited amount of equity in your primary residence as long as the property is on 10 acres or less in an urban area like McKinney. For vehicles, Texas allows you to exempt up to $15,000 of equity in one motor vehicle per licensed household member. The Texas wildcard exemption, found in Section 42.002 of the Texas Property Code, allows you to exempt up to $50,000 of personal property for a family or $25,000 for a single adult, which can be applied to cash, bank accounts, or other assets not covered by specific exemptions. These state-specific statutes mean that many McKinney residents can protect significant assets while still discharging debts, making bankruptcy a viable option even for those with home equity or valuable personal property.

The means test is a critical calculation that determines whether you qualify for Chapter 7 bankruptcy in McKinney. This test compares your household income over the past six months to the median income for a household of your size in Texas. As of 2025, the median income for a single earner in Texas is approximately $65,000, while a family of four has a median around $95,000. If your income falls below these thresholds, you automatically qualify for Chapter 7. If your income exceeds the median, you must complete a detailed calculation of your disposable income after subtracting allowed expenses under IRS standards. If your disposable income is low enough, you may still qualify for Chapter 7; otherwise, you will be required to file under Chapter 13. The means test involves complex forms and strict deadlines, so a bankruptcy lawyer in McKinney can ensure accurate calculation and proper documentation to avoid dismissal or conversion to a different chapter.

Filing bankruptcy triggers an automatic stay, which is one of the most immediate and powerful protections available. The automatic stay goes into effect the moment your case is filed with the bankruptcy court in the Eastern District of Texas, which serves McKinney. This stay stops all collection activities, including phone calls from creditors, wage garnishments, foreclosure proceedings, repossession efforts, and lawsuits. The timeline from filing to discharge varies by chapter. For a straightforward Chapter 7 case, you can expect your discharge approximately 90 to 120 days after filing, following the 341 meeting of creditors and any objections. For Chapter 13, the discharge occurs after you complete your repayment plan, which lasts three to five years. Before filing, you must complete a mandatory credit counseling course from an approved agency, and after filing, you must complete a debtor education course before receiving your discharge. These courses are typically available online or by phone and cost between $10 and $50 each.

The costs associated with bankruptcy in McKinney include court filing fees and attorney fees. The filing fee for Chapter 7 is $338, and for Chapter 13 it is $313, as of 2025. Attorney fees in the McKinney area typically range from $1,200 to $2,500 for a standard Chapter 7 case, while Chapter 13 cases often cost between $3,000 and $5,000 due to the additional work required for plan preparation and court oversight. Many bankruptcy lawyers offer payment plans that allow you to pay attorney fees in installments before filing, though the court filing fee must be paid in full at the time of filing or through an approved installment plan. For those with very low income, pro bono resources are available through organizations such as Legal Aid of NorthWest Texas, which provides free legal assistance to qualifying residents of Collin County. Additionally, some lawyers offer reduced-fee services for veterans, active-duty military, or seniors. It is important to note that these costs are general estimates and can vary based on case complexity.

Life after bankruptcy involves both challenges and opportunities for rebuilding your financial life. A Chapter 7 discharge stays on your credit report for 10 years from the filing date, while a Chapter 13 discharge remains for 7 years. During this time, you can begin rebuilding credit by obtaining a secured credit card, making on-time payments, and keeping credit utilization low. Many lenders are willing to extend credit to individuals who have completed bankruptcy, though interest rates may be higher initially. It is important to understand that not all debts are discharged in bankruptcy. Student loans are generally not dischargeable unless you can prove undue hardship through a separate adversary proceeding, which is difficult to win. Most tax debts are also not dischargeable, particularly income taxes less than three years old or those where you filed a fraudulent return. Child support, alimony, and certain fines or penalties also survive bankruptcy. A bankruptcy lawyer in McKinney can provide guidance on which debts may be eliminated and which will remain, helping you plan your post-bankruptcy financial strategy effectively.