Find Bankruptcy Lawyers Near You in Round Rock, TX

The cost of hiring a bankruptcy lawyer in Round Rock, Texas varies by case complexity and chapter filed. For a straightforward Chapter 7 case, attorney fees typically fall between $1,200 and $2,500, with the court filing fee of $338 paid separately. Chapter 13 cases involve higher fees, usually ranging from $3,000 to $5,000, because they require drafting a repayment plan and ongoing court oversight over three to five years. Many lawyers offer payment plans that allow you to pay attorney fees in installments before filing, and some may accept credit cards or offer reduced rates for those with limited income.

For individuals with very low income, pro bono resources are available through Texas Legal Services Center and Volunteer Legal Services of Central Texas, which may provide free representation or reduced-fee assistance. The Western District of Texas Bankruptcy Court also offers a pro se clinic for those filing without a lawyer. This information is general in nature and does not constitute legal advice; you should consult with a qualified bankruptcy attorney in Round Rock to discuss your specific financial situation and obtain accurate cost estimates.

Bankruptcy law provides individuals and businesses in Round Rock, Texas with a legal pathway to address overwhelming debt and obtain a fresh financial start. The most common chapters for individuals are Chapter 7 and Chapter 13, while businesses often consider Chapter 11. Chapter 7, often called liquidation bankruptcy, involves the sale of non-exempt assets by a court-appointed trustee to pay creditors, and most remaining unsecured debts are discharged. This chapter is typically suitable for individuals with limited income and few assets who cannot repay their debts over time. Chapter 13, known as reorganization bankruptcy, allows debtors with regular income to propose a repayment plan lasting three to five years to pay back some or all of their debts. It is often chosen by those who have a steady income but are behind on mortgage or car payments, or who have assets they wish to keep that exceed exemption limits. Chapter 11 is primarily used by businesses to reorganize their debts and operations while continuing to operate, though it is also available to individuals with debt levels exceeding Chapter 13 limits. Choosing the right chapter depends on your income, asset value, debt type, and long-term financial goals, and a bankruptcy lawyer in Round Rock can help evaluate your specific circumstances.

Texas has its own set of bankruptcy exemptions that differ significantly from the federal exemptions, and residents must use Texas state exemptions rather than choosing between state and federal systems. The Texas homestead exemption is among the most generous in the nation, protecting an unlimited amount of equity in your primary residence, provided the property is located on a lot of one acre or less in an urban area like Round Rock, or up to 100 acres in a rural area. This means that even if you have substantial equity in your home, you can likely keep it in a Chapter 7 bankruptcy as long as you continue making mortgage payments. For vehicles, Texas law exempts up to $15,000 of equity in one motor vehicle per licensed household member, and this amount is doubled for married couples filing jointly. The Texas wildcard exemption allows you to protect up to $60,000 of any personal property you choose, but only if you do not claim the homestead exemption; if you do claim the homestead exemption, the wildcard is reduced to $30,000. Other important exemptions include up to $30,000 in personal property such as clothing, furniture, and appliances, as well as retirement accounts, life insurance policies, and certain tools of the trade. These exemptions are codified in the Texas Property Code, specifically Sections 41.001 and 42.001 through 42.005, and a local bankruptcy lawyer can help you apply them to protect your assets.

The means test is a critical step in determining eligibility for Chapter 7 bankruptcy, and it compares your income to the median income for a household of your size in Texas. For cases filed in 2025, the median income for a single-person household in Texas is approximately $60,000, for a two-person household about $75,000, for a three-person household around $85,000, and for a four-person household roughly $100,000. If your current monthly income, averaged over the six months before filing, is below the median for your household size, you automatically pass the means test and qualify for Chapter 7. If your income exceeds the median, you must complete a more detailed calculation of your disposable income after subtracting allowed living expenses and secured debt payments. If your disposable income over five years is less than $8,175, you still qualify for Chapter 7. If it is between $8,175 and $13,650, you may qualify depending on the percentage of debt you could repay. If your disposable income exceeds $13,650, you are presumed to have the ability to repay creditors and will likely be required to file Chapter 13 instead. The means test calculation uses IRS national and local standards for living expenses, and a Round Rock bankruptcy lawyer can assist in accurately completing this complex form.

When you file for bankruptcy, an automatic stay immediately goes into effect, which stops most creditor collection actions, including phone calls, letters, lawsuits, wage garnishments, and foreclosure proceedings. This protection gives you breathing room to work with your lawyer and the court. The timeline from filing to discharge varies by chapter. In a Chapter 7 case, the process typically takes about three to four months, with a meeting of creditors (also called a 341 meeting) occurring about 30 days after filing, and the discharge order issued shortly after the 60-day period for creditors to object expires. In a Chapter 13 case, the process takes three to five years, as you make monthly payments to a trustee who distributes them to creditors, and the discharge is granted after you complete all payments. Before you can receive a discharge, you must complete two mandatory courses: a pre-filing credit counseling course from an approved provider within 180 days before filing, and a post-filing debtor education course after filing. These courses typically cost between $10 and $50 each and can be completed online or by phone. Failure to complete both courses can result in your case being dismissed without a discharge.

The costs of filing bankruptcy in Round Rock include court filing fees and attorney fees. The filing fee for a Chapter 7 case is $338, and for a Chapter 13 case it is $313, as set by the federal courts. Attorney fees for a simple Chapter 7 case in the Round Rock area typically range from $1,200 to $2,500, depending on the complexity of your assets and debts. Chapter 13 attorney fees are higher, often ranging from $3,000 to $5,000, because the case involves a multi-year repayment plan and more court oversight. Many bankruptcy lawyers offer payment plans that allow you to pay attorney fees in installments before filing, and some may accept credit cards. For those with very low income, pro bono resources are available through organizations such as Texas Legal Services Center and the Volunteer Legal Services of Central Texas, which provide free or low-cost bankruptcy assistance to qualifying individuals. The Western District of Texas Bankruptcy Court, which serves Round Rock, also has a pro se clinic that offers guidance for those filing without a lawyer, though representation by an attorney is strongly recommended due to the complexity of bankruptcy law.

Life after bankruptcy involves both challenges and opportunities for rebuilding your financial life. A Chapter 7 bankruptcy stays on your credit report for 10 years from the filing date, while a Chapter 13 bankruptcy remains for 7 years. During this time, you can begin rebuilding credit by obtaining a secured credit card, making small purchases and paying the balance in full each month, and ensuring all bills are paid on time. Some debts are not discharged in bankruptcy, including most student loans, certain tax debts (such as income taxes less than three years old or those where you filed a fraudulent return), child support and alimony obligations, debts for personal injury caused by drunk driving, and fines or penalties owed to government agencies. Additionally, if you file Chapter 7, you cannot receive another discharge for eight years from the date of filing, while Chapter 13 discharges are available every two years. Despite these limitations, bankruptcy provides a legal mechanism to eliminate or restructure overwhelming debt, and many people in Round Rock successfully rebuild their credit and achieve financial stability within a few years after filing.