Bankruptcy Lawyer in Johnson County, Texas: Reclaim Your Financial Future
If you’re facing overwhelming debt in Johnson County, filing for bankruptcy may provide the relief you need. Although bankruptcy is governed by federal law, Texas offers some of the most generous exemptions in the nation, helping you protect your home, car, and other essential property. Knowing how bankruptcy works—and how it applies to residents of Johnson County—can help you make informed decisions and avoid costly mistakes.
Why You Need a Bankruptcy Lawyer Near You in Johnson County
Bankruptcy is not a one-size-fits-all solution. It involves detailed financial disclosures, strict deadlines, and strategic decisions about what property you can keep. Without legal guidance, you risk:
- Losing property you might otherwise protect
- Having your case dismissed for filing errors
- Being denied a discharge of your debts
- Facing continued creditor harassment
- Making repayment plan mistakes that lead to foreclosure or repossession
Working with a knowledgeable Johnson County bankruptcy attorney ensures your paperwork is accurate, your rights are upheld, and your case proceeds efficiently.
How Bankruptcy Works in Johnson County: Step-by-Step
Step 1: Choose the Right Bankruptcy Chapter
Most individuals in Johnson County file under:
- Chapter 7: A “fresh start” bankruptcy that discharges most unsecured debts in 3–6 months. Non-exempt property may be sold to pay creditors, but Texas exemptions often protect your key assets.
- Chapter 13: A 3–5 year repayment plan that allows you to catch up on secured debts like your mortgage or car loan while keeping your property.
- Chapter 12: Tailored for family farmers and ranchers in rural areas of Johnson County, offering specialized restructuring options.
Step 2: Credit Counseling & Petition Filing
Before filing, you must complete a credit counseling course through an approved provider. Your bankruptcy attorney will then prepare and file your petition and financial disclosures.
Step 3: Automatic Stay
Immediately upon filing, an automatic stay goes into effect, stopping creditor harassment, wage garnishments, foreclosure, repossession, and lawsuits.
Step 4: Trustee Review & 341 Meeting
Roughly 30 days after filing, you’ll attend a 341 Meeting of Creditors, where a trustee reviews your case. Creditors may attend but often don’t. This meeting is usually held under the jurisdiction of:
U.S. Bankruptcy Court – Northern District of Texas (Fort Worth Division)
501 W. 10th Street
Fort Worth, TX 76102
Phone: (817) 333-6000
https://www.txnb.uscourts.gov
Although Johnson County doesn’t have a bankruptcy court of its own, residents file cases through the Fort Worth Division of the Northern District of Texas.
Step 5: Discharge or Plan Completion
- Chapter 7 ends with a discharge of eligible debts, typically within 4–6 months.
- Chapter 13 ends after successful repayment, at which point remaining qualifying debts are discharged.
Texas Bankruptcy Exemptions: What You Can Keep in Johnson County
Texas law allows you to choose between Texas exemptions or federal bankruptcy exemptions, but not both.
Texas Exemptions (If You’ve Lived in Texas for 2+ Years)
- Homestead Exemption:
- Unlimited dollar amount (with some federal limits)
- Protects your primary residence on up to 10 urban acres or 100 rural acres (200 for families) in Johnson County
- Protects sale proceeds for up to 6 months
- Does not protect against mortgage foreclosures or tax liens
- Personal Property Exemptions:
- $50,000 (individuals) / $100,000 (families)
- Covers furniture, clothes, food, tools of the trade, firearms, a vehicle per licensed household member, jewelry (up to 25% of limit), livestock, pets, and more
- Also includes life insurance cash value, retirement accounts (401(k), IRA), unpaid wages, and health aids
- Not Exempt:
- Cash on hand or in bank accounts
- Tax refunds
- Stocks and non-retirement investments
Federal Exemptions (Available Only in Bankruptcy Cases)
Federal exemptions may benefit Johnson County residents without significant home equity or those new to Texas:
- $27,900 in homestead equity (2022 figure, doubles if married)
- $4,450 in vehicle equity
- $14,875 in household goods (up to $700 per item)
- $1,875 in jewelry
- Wildcard exemption: $1,475 + unused homestead amount
- Tools of the trade: $2,800
- Most government benefits and retirement funds are fully exempt
IRS Seizures & Bankruptcy in Johnson County
The IRS follows federal tax law, not Texas bankruptcy exemptions. It can seize most assets except:
- Essential household items (up to $1,650)
- Tools of the trade (up to $1,100)
- Certain benefits (Social Security, VA)
- Wages for child support
- Homes, but only with IRS director approval
Residency Requirements & Homestead Cap
- You must live in Texas for at least 2 years to use the Texas exemption system.
- If you bought your Johnson County home within the last 3 years and 4 months or transferred assets to defraud creditors, the homestead exemption may be capped at $170,350 (as of 2024).
What Could Go Wrong Without a Bankruptcy Lawyer?
Filing without professional help can lead to serious consequences:
- Missed deadlines or incorrect paperwork
- Choosing the wrong exemption system
- Discharge denial or case dismissal
- Improper plans that cause repossessions or foreclosures
- Creditors continuing collection efforts
A qualified Johnson County bankruptcy attorney can help you avoid these costly errors.
Why Choose Our Johnson County Bankruptcy Lawyers?
Our attorneys are experienced in federal bankruptcy law, Texas exemptions, and local court procedures in the Fort Worth Division. We help Johnson County residents protect their assets, eliminate debt, and navigate the process with confidence.
Bankruptcy Statistics in Texas & Johnson County
- Over 70,000 bankruptcies are filed annually in Texas
- In Johnson County, Chapter 13 is more commonly filed than Chapter 7—especially by families trying to save their homes
- Chapter 7 typically takes 4–6 months, while Chapter 13 repayment plans last 3–5 years
For official data, visit the U.S. Courts Bankruptcy Statistics page.
Ready to Rebuild Your Financial Life?
If you’re searching for a bankruptcy lawyer in Johnson County or wondering if bankruptcy is right for you, we can help. Don’t go it alone. Contact us today.