Texas Bankruptcy Laws

While the majority of bankruptcy law in the United States is governed by federal law, there are certain state related aspects to be considered when filing for bankruptcy. Texas bankruptcy is no different. When filing for bankruptcy in the state of Texas, it is important to understand a few of the rules and regulations that specifically apply to the state.

Bankruptcy and Credit Counseling

Before filing for bankruptcy in the state of Texas, you are required to complete an approved credit counseling course. Texas bankruptcy law requires you to obtain a certificate of completion from the agency and to file it with the appropriate court. Other requirements include completing it within 180 days leading up to your filing and completing a second course after filing. The second course is known as the ‘debtor education course.’ A list of approved Texas bankruptcy credit counseling agencies can be found online.

Bankruptcy and Exemptions

Texas bankruptcy law also stipulates what property you can and cannot exempt when filing for bankruptcy. In the state of Texas, you can either choose to follow the federal bankruptcy exemptions or the Texas bankruptcy exemptions. However, you cannot mix and match the two sets of exemptions.

Bankruptcy and the Means Test

When filing for bankruptcy in Texas, you are required to compare your income with the average income in the state. If the test finds your income to be below the average, you will be able to file for chapter 7 bankruptcy. If you are above the median, you will have to complete more paperwork to determine whether you can qualify.