Many Texans struggle with outstanding debts that are difficult to pay off. Bankruptcy is a common tool used across the country to settle issues with your creditors. This may leave you wondering, can bankruptcy stop medical debt lawsuits and wage garnishment in Fort Worth? The counsel of a Fort Worth bankruptcy attorney can help answer that question and more.
Bankruptcy is a legal proceeding in Texas used when someone cannot pay outstanding debts. They are a common filing nationwide, with 574,314 cases nationwide in 2025, representing an 11 percent increase from the previous year. Of these cases, the Northern District of Texas reported 12,791 cases across the jurisdiction. The most common filing was Chapter 7, accounting for 7,320 cases.
Bankruptcy can take many forms in Texas. The two main types utilized for individuals facing medical debt or wage garnishment are Chapter 7 and Chapter 13. In Chapter 7 cases, non-exempt debts are sold to pay creditors. Any outstanding debts are typically erased at a cost to credit history. Chapter 13 bankruptcies involve establishing plans to repay debts with limited asset liquidation.
All Fort Worth bankruptcy cases go through the Northern District of Texas US District Court, located downtown, a few blocks west of the convention center at 501 West 10th Street, Fort Worth, TX 76102.
Filing for bankruptcy can have significant impacts on wage garnishment. Opening either Chapter 7 or Chapter 13 immediately stops creditors from sending collection letters, making calls, taking from your bank account, and garnishing your wages. If you are filing Chapter 7, the outstanding debts can be wiped out, and this will remove any basis for wage garnishment. For Chapter 13 cases, wage garnishment can be superseded by an established payment plan.
Certain debts cannot be paused. Wage garnishments for outstanding child support, alimony, federal or state income taxes, or student loans are not affected by bankruptcy filings. In addition, creditors can petition the court to ignore an automatic stay in rare instances.
Bankruptcy cases filed during an ongoing medical debt lawsuit, as with wage garnishment, automatically stop the claim. Even if a judgment has been made, bankruptcy may discharge the verdict. Chapter 7 cases can dismiss debts, while Chapter 13 lays out a framework to repay what is owed.
Some medical debts cannot be forgiven through bankruptcy. Debts linked to malpractice or fraud are not dismissible. Secured medical debt may result in the lender repossessing collateral items. The third type of medical debt that may not be wiped out is co-signed loans.
I have spent years helping the people of Fort Worth, Arlington, Granbury, and cities across Texas in their bankruptcy cases. I have also served as the President of the Bankruptcy Law Section of the Tarrant County Bar Association before opening my own practice, and have earned a Top Lawyer Rating by Fort Worth Magazine nine times. I use my knowledge and experience to collaborate with my team to provide each client with the unique services they need.
A: Neither Texas nor federal law requires you to have a lawyer to file for bankruptcy. However, seeking legal counsel can be crucial to the process. A bankruptcy attorney can explain your options, organize your assets, negotiate with creditors, and represent you in court proceedings. They can help meet deadlines and avoid easy errors.
A: During Texas bankruptcy proceedings, you can exclude certain assets when liquidating your belongings to settle outstanding debts. Under state law, items deemed as personal property are exempt. Examples include one vehicle, clothing, furniture, pets, or tools. Another important Texas protection is constitutional homestead laws, which bar creditors from seizing your or your family’s primary residence.
A: When considering filing for bankruptcy in Texas, it’s important to understand what debts cannot be removed by the process. Outstanding owed sums are known as non-dischargeable debts. Under federal law, key non-dischargeable debts include specific taxes, child support, personal injury claims, most student loans, and any court-ordered funds for a criminal conviction.
If you are confused about whether a debt of yours is a non-dischargeable debt, a Fort Worth bankruptcy attorney can clarify your filing options.
A: How long your bankruptcy case takes to resolve is based on the filing type, the creditors involved, and the court backlog. Chapter 7 cases with one creditor typically take less time than Chapter 13 filings with multiple disputing creditors and a long-term payment plan. Your attorney can provide a rough timeline based on the details of your case.
A: How much your Texas bankruptcy lawyer costs depends on the complexity of your case, the type of filing, and the total workload for the firm. Chapter 11 filings handling complex business accounts typically cost less than a Chapter 7 case for a few debts. Another contributing factor is the legal expenses, with practices using flat fee structures for services, retainer expenses, or hourly rates for bankruptcy matters.
Bankruptcy cases can be complex legal proceedings that require extensive legal and financial knowledge. While you may represent yourself in all legal cases, it is recommended that you hire a bankruptcy lawyer to help with your situation. A Fort Worth bankruptcy attorney can provide options, organize assets, draft paperwork, and guide you through the process. Steele Law Firm, PLLC, can help you pursue the solution you need to take the next financial steps in your life.
Contact us today to schedule your initial consultation. During this meeting, we can learn your story and discuss strategies to reduce wage garnishment or the effect of medical debt claims. You may also visit our Fort Worth offices, located a few blocks west of Dickies Arena and the Fort Worth Botanic Garden, north of Interstate 30, southwest of Will Rogers Memorial Center, and east of the Thomas Place Community Center.
