Bankruptcy FAQs for Dallas-Fort Worth

Most clients qualify if their household income is below the Texas median for their family size or they pass the means test after expenses. Higher earners can still qualify if secured debt and necessary expenses reduce disposable income. 11 U.S.C. §707(b)

The stay stops most collections the moment your case is filed: lawsuits, garnishments, repossessions, and foreclosure activity must pause. Creditors need court permission to continue. 11 U.S.C. §362

Texas exemptions protect equity in your primary residence (urban up to 10 acres or rural up to 200 acres) and substantial vehicle equity. Staying current on loans is key; otherwise, reaffirmation or redemption may be needed. Tex. Prop. Code §§41 & 42; 11 U.S.C. §522

Typical timelines run 90–120 days from filing to discharge. Key milestones: credit counseling (pre-filing), 341 meeting about 30–45 days after filing, then discharge if no objections. Fed. R. Bankr. P. 2003, 4004

Credit cards, medical bills, repossession balances, personal loans, and many judgments are dischargeable. Student loans, recent taxes, domestic support, and fraud-related debts are generally not. 11 U.S.C. §523

Chapter 13 lets you catch up on mortgage or car arrears, protect non-exempt assets, and consolidate priority debts over 3–5 years. It’s often chosen to stop foreclosure or manage tax and domestic support arrears. 11 U.S.C. §§1322, 1325

Chapter 7 can report up to 10 years; Chapter 13 up to 7 years. Many clients see score recovery sooner by keeping low balances, paying on time, and using secured credit. 15 U.S.C. §1681c(a)

Most cases only require attending the 341 meeting with the trustee (often virtual). A separate court hearing is rare unless objections or reaffirmations need judge approval. 11 U.S.C. §341; Fed. R. Bankr. P. 4008

Most plans run three to five years. The exact length depends on your income, debt mix, trustee requirements, and whether the plan is confirmed without significant objections.

Filing typically triggers the automatic stay, which may pause a scheduled foreclosure while your plan proposes how you will cure arrears. Timing, equity, and any prior filings can affect how the stay applies.

Many filers keep vehicles and homes if they maintain ongoing payments and include arrears in the plan, subject to equity, exemptions, and creditor rights. Each case is fact-specific.

Priority debts often must be paid in full, secured debts follow contract or plan terms, and unsecured creditors may receive a portion based on disposable income and nonexempt equity.

Significant income changes should be discussed with your attorney. Plans can sometimes be modified, but increases or decreases can impact feasibility, payments, and discharge eligibility.