What are Texas Bankruptcy Records?

Texas bankruptcy records are legal documents that contain information about individuals who are unable to repay outstanding debts. Covered by federal law, bankruptcy records help affected individuals start anew by generating a repayment plan or liquidating assets for debt servicing. According to the U.S Department of Justice, bankruptcy cases are handled in federal courts as per the U.S bankruptcy code. Bankruptcy files contain details such as income sources, assets, real estate, and a list of creditors.

Aside from Chapter 9, Chapter 12, Chapter 13, and Chapter 15, the two most common types of bankruptcy in the state of Texas are Chapter 7 and Chapter 11. Chapter 11 involves persons or companies that get to temporarily reduce or suspend payments to creditors, while Chapter 7 regards startup businesses having to liquidate debt because of an inability to pay off existing debts.

The Texas bankruptcy court system is divided into four districts: northern, southern, western, and eastern. Bankruptcy records are public and may be accessed electronically through the Public Access Electronic Records, or PACER, system for a small fee. Interested parties may also visit the court involved or order by mail. Generally, a bankruptcy case number is required to complete the search process and may be obtained from the bankruptcy district court involved. Although bankruptcy records are accessible to the public, third-party websites such as TexasCourtRecords.us may not be used to obtain bankruptcy documents.

What do Texas Bankruptcy Records Contain?

Texas bankruptcy records contain vital information about the financial standing and other details of the person or company involved. Information contained in a bankruptcy record includes:

• Sources of income
• Gross income
• Assets of the individual involved include stocks, bank accounts, properties, businesses owned, or companies invested in
• A list containing employees owed, such as a final paycheck if applicable
• A detailed list of creditors, along with the individual's addresses and the amount owed to each creditor

Creditors are categorized as either secured or unsecured. Secured creditors are typically given higher priority in getting paid because the borrowing process is backed by collateral. Unsecured creditors do not request collateral when the money is borrowed. Examples of secured creditors are tax agencies and banks that may have received a deed of trust to secure a mortgage loan.

Are Bankruptcy Records Public Information?

Bankruptcy records are public records within the jurisdiction of Texas. However, there are restrictions to specific sections such as Bankruptcy Form B-21, due to the form containing details such as the party's social security number. Other vital information in a bankruptcy record may also be censored to protect a person's identity to a certain degree and shield sensitive information.

Records that are considered public may be accessible from some third-party websites. Such platforms, which operate independently of any state, county, or local agency, may make the search process easier because they are not geographically constrained. Third-party platforms may also have search engines that might be useful when conducting a search for a specific or many records. To use a third-party or government website, interested parties typically submit any or all of the following:

• The name of the person involved in the record, unless said person is a juvenile
• The location or assumed location of the record or person involved. This includes information such as the city, county, or state that the person resides in or was accused in.

Third-party sites are independent from government sources and are not sponsored by these government agencies. Because of this, record availability on third-party sites may vary.

How to Get Texas Bankruptcy Records

The processes of acquiring bankruptcy records across the four judicial districts (northern, eastern, western, and southern) in Texas are similar.

PACER is an electronic public access service that allows members of the public to access information on bankruptcy records from the courts and the PACER case locator. The site charges a fee of $.10 per page, and interested persons are required to register to obtain bankruptcy case information.

The Voice Case Information System (VCIS) allows interested individuals to call the bankruptcy court to get information about a particular bankruptcy case. The data obtained from the court's repository is up to date. This service is available for free at all times. Searches for bankruptcy records typically require a known case number and/or the debtor's name. Information provided in the search result includes the case status, the presiding judge, availability of assets, the debtor's attorney's name, and number. Each district has a different number to call.

Requests for information or physical copies of bankruptcy records may be made in writing and mailed along with the exact fee for each copy requested. The charges may be paid through checks and money orders to the Clerk, U.S. Bankruptcy Court. The appropriate request form to be completed when searching for just case information is the BTXN128 - Bankruptcy Case Information Search Request Form. The form to request the bankruptcy records of an individual or business is BTXN 089 - Application for Search of Bankruptcy Records. However, to retrieve copies of bankruptcy records, complete the BTXN 085 - Request for Copies form. Certified copies may be obtained by completing the BTXN 212 - Request for Certified Copies form and submitting it to the district office.

How do I Find Out if My Bankruptcy Case is Closed in Texas?

As most cases have different circumstances, the time a bankruptcy case is closed may not be recorded. However, Chapter 7 cases without assets are closed within 90 days of filing without disputes, while those with assets need the trustees to liquidate the assets, which may take time. Chapter 11 cases are complicated and sometimes remain open for more than three years. Chapter 13 cases stay open even after plan payments have been made. Eligible parties may be able to learn the current status of a bankruptcy case in Texas by calling the District's Voice Case Information System (VCIS) or contacting the clerk's office of the specific District Court where the bankruptcy case was filed.

Can a Bankruptcy be Expunged in Texas?

Texas's record laws have no bearing on bankruptcies because the federal court system handles bankruptcy cases, and there's no provision of expungement in the U.S. Bankruptcy Code. However, bankruptcy documents may be sealed under court order by:

• Removing the debtor's name from the court records so that when a search is run using the debtor's name, no case pops up
• Leaving a statement in the bankruptcy record stating that the bankruptcy petition was filed fraudulently
• Declaring the bankruptcy null and void, which means when the record comes up, there's a judge's statement for it to be disregarded.

To seal a bankruptcy record in Texas, submit a written motion to seal along with other necessary documents to the court. The proposal to seal should state the reason why the documents should be withheld from public access, describe the exact part of the record to be sealed (if it's the full record, state it as well), and request that the file be sealed pending approval from the court.

What Disqualifies you from filing Bankruptcies in Texas

Texans may be disqualified from filing for Chapter 7 bankruptcy for a variety of reasons, ranging from concealing assets to destroying financial records or deliberately entering untrue information in the bankruptcy forms. That said, Texans must pass a “means test” to qualify for bankruptcy under Chapter 7. The Means Test compares household income against the state’s median. If the debtor's income exceeds Texas's median, and disposable income calculations indicate an ability to repay creditors, their Chapter 7 filing may be dismissed or converted to a Chapter 13 repayment plan.

As of 2024, the median income in Texas is about $61,630 for a one-person household, up to $107,547 for a four-person household. Those above these limits must prove special hardships or cannot use Chapter 7. However, Texan rules provide generous exemptions. To utilize Texas's exemptions, such as the unlimited homestead exemption, the individual must have lived in Texas for at least two years. These exemptions impact property protection, rather than determining eligibility to file for bankruptcy.

If Chapter 7 cannot be filed (for example, because the applicant earns above the state's median), Chapter 13 offers a repayment plan lasting three to five years. Chapter 13 requires regular income, pre-filing credit counseling, and debt under federal limits ($526,700 unsecured and $1.58 million secured).

Bankruptcy courts in Texas