If you are overwhelmed by debt and wondering whether bankruptcy is even an option, one of the first questions you probably have is simple: Do I have enough debt to qualify?As a bankruptcy lawyer in Corpus Christi, we hear this concern every day, and the answer depends on the type of bankruptcy you may be eligible to file.
Texas bankruptcy law does not require a minimum amount of debt to file, but there are limits that matter, especially for Chapter 13 cases. Understanding these limits can help you decide whether bankruptcy makes sense or whether another debt relief approach may be better.
Is There a Minimum Amount of Debt Required to File Bankruptcy in Texas?
No. There is no minimum debt requirement to file bankruptcy in Texas. Even so, bankruptcy is typically considered when debts have become difficult or impossible to manage through normal repayment.
As a bankruptcy attorneys, our role is to evaluate whether filing bankruptcy would actually improve your financial position or whether another solution should be considered first.
Chapter 7 Bankruptcy and Debt Limits in Texas
Chapter 7 bankruptcy does not have a maximum debt limit. Eligibility is based primarily on income, using the Texas means test.
If you qualify, Chapter 7 can discharge many unsecured debts, including:
- Credit card balances
- Medical bills
- Personal loans
- Certain collection accounts
Because there is no debt cap, Chapter 7 is often an option for people with substantial unsecured debt. A bankruptcy lawyer can review your income, expenses, and assets to determine whether Chapter 7 is appropriate.
Chapter 13 Bankruptcy Debt Limits (Current Thresholds)
Chapter 13 bankruptcy does have strict debt limits, and the temporary higher limits are no longer in effect.
To qualify for Chapter 13 in Texas, your debts must fall under:
- $526,700 in unsecured debts
- $1,580,125 in secured debts
If your debts exceed these amounts, Chapter 13 may not be available. In those situations, Chapter 7 or another legal approach may be explored depending on your circumstances.
When Bankruptcy May Be a Better Approach
Some individuals attempt debt negotiation or settlement first. In certain cases, those options can help. However, bankruptcy may be a better approach if that is not an option, especially when debts continue to grow or legal pressure is increasing.
Our goal is not to push bankruptcy, but to explain it clearly so you can make an informed decision.
Why Work With a Bankruptcy Lawyer in Corpus Christi?
Although bankruptcy law is federal, cases are filed and managed locally. We practice in the Southern District of Texas, including Corpus Christi, Houston, Victoria, McAllen, Laredo, and surrounding communities.
Working with a bankruptcy lawyer means your case is handled by someone familiar with local court procedures and expectations, which can make the process smoother and more efficient.
Schedule a Confidential Bankruptcy Consultation
If you are unsure whether you qualify for bankruptcy in Texas, a consultation is the best place to start. During this meeting, TheLaw Office Of Joel Gonzalezwill:
- Review your total debt and income
- Determine whether Chapter 7 or Chapter 13 may apply
- Explain what bankruptcy can realistically accomplish
- Discuss alternatives if bankruptcy is not the right fit
We have a strong track record of high client satisfaction and focus on straightforward, practical advice. If you are searching for a bankruptcy lawyer residents can rely on for clear guidance, contact our office today.
Submit our online form to schedule a confidential consultation and take the first step toward regaining control of your finances.
