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There is no minimum debt to file bankruptcy, so the amount does not matter. Examples of unsecured debts include credit card debt, cash advance (payday) loans, and medical bills. Secured debts: If you are behind on a house or car payment, this may be a very good time to file for bankruptcy.

Steps in a Texas Bankruptcy learn about Chapters 7 and 13. check whether bankruptcy will erase debt. find out if you can keep property. determine whether you qualify. consider hiring a bankruptcy lawyer. stop paying qualifying debts. gather necessary financial documents. take a credit counseling course.

Bankruptcy may help you get relief from your debt, but it's important to understand that declaring bankruptcy has a serious, long-term effect on your credit. Bankruptcy will remain on your credit report for 7-10 years, affecting your ability to open credit card accounts and get approved for loans with favorable rates.

Bankruptcy is a process where people who cannot pay their debts give up their assets and control of their finances, either by agreement or court order, in exchange for protection from legal action by their creditors.

You could lose assets of value Depending on which type of bankruptcy you qualify for, your income, the equity in your assets and other factors, you may lose your home, your car and other valuable items. Your trustee may be required to sell these items to repay your creditors.

Steps in a Texas Bankruptcy learn about Chapters 7 and 13. check whether bankruptcy will erase debt. find out if you can keep property. determine whether you qualify. consider hiring a bankruptcy lawyer. stop paying qualifying debts. gather necessary financial documents. take a credit counseling course.

The Means Test is a bankruptcy form that calculates your average monthly and annual income. The test compares your income against the median income of other households in Texas. If your average annual income or median income is below the Texas median income, you may qualify for a bankruptcy discharge under Chapter 7.

If you have large debts that you can't repay, are behind in your mortgage payments and in danger of foreclosure, are being harassed by bill collectors—or all of the above—declaring bankruptcy might be your answer.

The biggest difference between Chapter 7 and Chapter 13 is that Chapter 7 focuses on discharging (getting rid of) unsecured debt such as credit cards, personal loans and medical bills while Chapter 13 allows you to catch up on secured debts like your home or your car while also discharging unsecured debt.