Bankruptcy is a federal court process that gives an individual a fresh financial start. Depending on which chapter you file, it can wipe out qualifying debt entirely (Chapter 7) or reorganize it into a manageable 3–5 year payment plan (Chapter 13). Filing also triggers the automatic stay under 11 U.S.C. §362, which immediately stops most lawsuits, wage garnishments, foreclosure sales, and collection calls.

Almost any individual can file. Chapter 7 has an income test, the “means test,” that compares your household income to the Texas median for your family size; if you are below it, you qualify. If your income is higher, Chapter 13 is usually the path. Businesses and corporations file under different rules. A short consultation is enough to tell you which chapter fits.

Most unsecured debts are dischargeable: credit cards, medical bills, personal loans, payday loans, old utility bills, deficiency balances after a repossession, and toll charges. Some debts generally survive bankruptcy: recent income taxes, most student loans, child support and alimony, and criminal fines. Secured debts like a mortgage or car loan can be kept (by staying current) or surrendered.

Chapter 7 is a liquidation. Non-exempt property (if any) is sold to pay creditors and the rest of your qualifying debt is discharged, usually within 3–4 months. Chapter 13 is a reorganization. You keep your property and repay what you can afford through a court-approved plan lasting 3 to 5 years — this is how people cure past-due mortgage payments, stop a foreclosure, or keep a car they have fallen behind on.

For a bankruptcy consultation: recent pay stubs, your two most recent tax returns, a list of your debts (collection letters and lawsuit papers are helpful), and a rough list of what you own. The office provides an Initial Consultation Agreement, a Documents Required Checklist, and a Client Questionnaire to walk you through it.

1. Initial Consultation Agreement

2. Documents Required Checklist

3. Client Questionnaire

Call or text (469) 389-8877 for general matters or (469) 926-6126 for evictions, email ocrlegal@gmail.com, message us on WhatsApp at the general number, or use the contact form on this site. The office prefers email or text so there is a written record. Consultations can be in person in Frisco, by phone, or by video.

Do not ignore it. In Justice Court you generally must file a written answer by the end of the 14th day after you were served (the deadline rolls to the following Monday if the 14th day is a weekend or holiday). If you do not answer, the collector can take a default judgment and pursue wage garnishment or a bank levy. Filing an answer preserves defenses, including lack of standing and the four-year Texas statute of limitations under Tex. Civ. Prac. & Rem. Code §16.004. Call before the deadline; the answer is often the whole ballgame.

The first consultation is free. Attorney fees depend on the chapter and the complexity of your case, and Chapter 13 fees are typically built into your court-approved plan rather than paid up front. The federal court filing fee is set by statute ($338 for Chapter 7, $313 for Chapter 13 as of 2026) and can sometimes be paid in installments. You will get a flat quote at the consultation, in writing, before you commit to anything.

Usually, yes. Texas has one of the strongest homestead exemptions in the country: there is no dollar cap on the equity in a qualifying homestead, only acreage limits. Texas also exempts up to $100,000 of personal property for a family ($50,000 for a single adult) under Texas Property Code §42.001, plus one vehicle per licensed driver in the household, tools of your trade, and most retirement accounts. Most filers keep everything.

Yes. Attorney Omar Colón is a native Spanish speaker and handles the entire case, including the consultation, the paperwork, and the court hearings, in English or Spanish. ¡Se habla español!