The Woodlands is a master-planned community about 30 miles north of downtown Houston, primarily in Montgomery County. Known for its high quality of life and above-average incomes, The Woodlands is not immune to financial hardship. Medical debt, business failure, and divorce can overwhelm even high-income households.
Exemptions determine what property you can keep in bankruptcy. See the full Texas exemptions guide.
Residents file in the Southern District of Texas, Houston Division. The courthouse at 515 Rusk Ave is about 30 miles south via I-45. Some 341 meetings are conducted telephonically. If your case requires a court hearing, plan for the commute to downtown Houston.
Lone Star Legal Aid serves Montgomery County residents (713-652-0077). The Montgomery County Bar Association offers a lawyer referral service. The U.S. Trustee's website lists approved credit counseling and debtor education providers.
You must pass the means test. If your household income exceeds the Texas median for your family size, you may still qualify if your disposable income after allowed expenses is low enough. If not, Chapter 13 allows you to repay what you can afford over 3-5 years while protecting your assets.
Personal bankruptcy does not directly affect a separately incorporated business (LLC or corporation). However, if you personally guaranteed business debts, those guarantees can be addressed in your personal bankruptcy. Sole proprietorship assets may be at risk in Chapter 7.
Retirement accounts including 401(k)s, IRAs, pensions, and other ERISA-qualified plans are fully exempt in Texas bankruptcy. Traditional and Roth IRAs are protected up to approximately $1.5 million. These protections apply regardless of which chapter you file.
Use the free 1328(f) screener to check whether a prior discharge affects your eligibility.
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Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5