Bankruptcy

Austin Bankruptcy Attorneys

Bankruptcy in Texas is a legal process that ends debt collection, stops foreclosure, and gives you a real path forward. We connect Austin residents with bankruptcy attorneys who explain your actual options — not just whether you qualify.

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Practice Areas

Bankruptcy Cases We Handle in Austin

Bankruptcy law has specific chapters designed for specific situations. The right chapter depends on your income, your assets, and what you are trying to protect. Find your situation below. Need help finding the right attorney? Learn how our Austin attorney referral service connects you with the right bankruptcy lawyer for your specific situation.

Chapter 7 Bankruptcy

Chapter 7 liquidation eliminates most unsecured debt in three to six months. Whether you qualify depends on the means test — your income relative to Texas median income. We connect you with bankruptcy attorneys who run this analysis before you file.

Chapter 7 Bankruptcy Attorneys

Chapter 13 Bankruptcy

Chapter 13 restructures your debt into a three-to-five-year repayment plan. It keeps assets you'd lose in Chapter 7 — including your home and car — while stopping foreclosure and repossession immediately on filing.

Chapter 13 Bankruptcy Attorneys

Business Bankruptcy

Small businesses in Texas often file Chapter 7 for dissolution or Subchapter V of Chapter 11 for reorganization. The right path depends on whether the business is viable and the nature of its debts.

Business Bankruptcy Attorneys

Debt Negotiation

Bankruptcy is one tool. Debt settlement negotiations outside of bankruptcy can reduce balances without the long-term credit impact of a filing. Bankruptcy attorneys evaluate both paths and advise which is more advantageous for your situation.

Debt Negotiation Attorneys

Foreclosure Defense

Filing bankruptcy triggers an automatic stay that immediately stops foreclosure proceedings. This buys time to either sell, refinance, or propose a repayment plan in Chapter 13. The stay is not permanent — timing matters.

Foreclosure Defense Attorneys

Wage Garnishment

When a creditor garnishes your wages in Texas, they are collecting on a judgment. Bankruptcy stops most wage garnishments immediately through the automatic stay. Texas exemptions also protect wages from many garnishment orders even without filing.

Wage Garnishment Attorneys

Repossession Defense

If your vehicle has been repossessed or repossession is imminent, Chapter 13 bankruptcy can stop the process and allow you to catch up on missed payments. Timing is critical — once a vehicle is sold at auction, recovery becomes far more difficult.

Repossession Defense Attorneys

Means Test Analysis

The means test determines your eligibility for Chapter 7. If your income exceeds the Texas median, you must pass a second part of the test showing your disposable income is below a threshold. Bankruptcy attorneys run this calculation before advising you to file.

Means Test Analysis Attorneys

Texas Bankruptcy Law

What You Need to Know Before You File

The automatic stay stops collection immediately

From the moment a bankruptcy petition is filed, federal law prohibits creditors from continuing collection actions, foreclosure proceedings, wage garnishments, and most lawsuits. This is called the automatic stay, and it takes effect before any court hearing.

Texas exemptions are generous

Texas has some of the strongest bankruptcy exemptions in the country. Your homestead is fully protected with no dollar limit. A $50,000 personal property exemption applies to individuals ($100,000 for families). Most retirement accounts are fully exempt. Understanding what you keep matters as much as understanding what you discharge.

Chapter 7 and Chapter 13 serve different purposes

Chapter 7 liquidates non-exempt assets and discharges eligible debt in three to six months. Chapter 13 keeps all assets and restructures debt into a three-to-five-year repayment plan. Chapter 13 is the only option if you earn too much for Chapter 7, want to keep a home facing foreclosure, or have non-dischargeable debts you need time to pay.

The means test determines Chapter 7 eligibility

To file Chapter 7, your income must pass the means test. If your current monthly income is below the Texas median for your household size, you pass automatically. If above, you must complete a second calculation comparing income to allowable expenses. A bankruptcy attorney runs this analysis before advising you which chapter to file.

How We Work

We Connect. Attorneys Advise.

ATX Attorneys is not a law firm. We are a referral service — the direct line between Austin residents carrying debt they cannot manage and bankruptcy attorneys who know the Western District of Texas bankruptcy court, the local trustees, and how to protect as much of your financial life as the law allows.

Bankruptcy law is federal, but the trustees, judges, and filing procedures in Austin's Western District court have their own patterns. Local attorneys who file here regularly know what works and what draws scrutiny. We route your request to attorneys with that specific experience.

There is no fee to request a connection. Most bankruptcy attorneys offer a free initial consultation and then quote flat fees for the full filing process. You pay nothing until you retain one of them directly.

By the Numbers

8

Bankruptcy sub-specialties in our network

1 day

Average attorney response time after your request

$0

Cost to request a connection through ATX Attorneys

24/7

Form availability — debt does not keep business hours

Common Questions

Bankruptcy FAQs

No. Chapter 7 remains on your credit report for ten years; Chapter 13 for seven. Many bankruptcy filers see their credit score begin to recover within one to two years after discharge because the discharged debts are no longer dragging down their debt-to-income ratio. Rebuilding after bankruptcy is faster than most people expect.
In most cases, yes. Texas's unlimited homestead exemption protects your primary residence in Chapter 7 if you are current on your mortgage. Your vehicle is also exempt up to a value limit, and most filers keep it. In Chapter 13, you keep all assets as long as your repayment plan pays creditors at least what they would have received in Chapter 7.
Most secured debts (mortgage, car loan) survive unless you surrender the asset. Certain unsecured debts are also non-dischargeable: recent federal and state taxes, child support and alimony, student loans (except in rare hardship cases), and debts from fraud or willful misconduct. A bankruptcy attorney reviews your specific debt profile before advising on the value of filing.
Chapter 7 bankruptcy attorney fees in Austin typically run $1,000–$2,000 as a flat fee, plus the court filing fee of $338. Chapter 13 is more complex — attorney fees are typically $3,000–$5,000 over the life of the plan, with court approval of the fee arrangement. Most attorneys offer payment plans for Chapter 7.

From Our Legal Blog

Bankruptcy Guides for Austin Residents

Need help finding the right attorney? Learn how our Austin attorney referral service connects you with the right bankruptcy lawyer for your specific situation.

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Debt Does Not Have to Define Your Future. Talk to a Bankruptcy Attorney in Austin.

Bankruptcy law exists because circumstances change — job loss, medical debt, a divorce, a business that did not work. Submit your request and we will connect you with an Austin bankruptcy attorney who explains your real options.

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