Bankruptcy / Texas / Bay City

Filing Bankruptcy in Bay City: 7 Things You Need to Know

Written by Ben Tejes
Updated Apr 16th, 2024

You are considering filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy in Bay City. Bankruptcy is a common debt relief choice. In fact, many people in Texas have received bankruptcy relief, and Bay City is no different. In fact, there were 20,450 bankruptcies filed in Texas in the year ending June 30, 2021 (Source). With a population of 17535, I’d estimate a fair number of those were in Bay City.

The purpose of this article is to provide an extensive list of filing bankruptcy in Bay City including:

  1. Chapter 7 Bankruptcy in Bay City
  2. Chapter 13 Bankruptcy in Bay City
  3. Bay City Bankruptcy Attorney Fees
  4. Finding a Reputable Bankruptcy Lawyer in Bay City
  5. Estimating Loss of Belonging (i.e.
  6. Getting Bankruptcy Help in Bay City
  7. Bankruptcy Alternatives and Conclusion

Without further ado, let’s get started with Chapter 7 bankruptcy.

Chapter 7 Bankruptcy in Bay City

Chapter 7 bankruptcy is the most common consumer bankruptcy in the United States. People appreciate the simplicity of Chapter 7 bankruptcy, the cost of the Chapter 7 bankruptcy, and the speed of debt relief. For example, in Bay City, you could get debt relief in about 120 days with a Chapter 7 bankruptcy.

One of the challenges of Chapter 7 bankruptcy in Bay City is that you have to qualify. In order to qualify in Bay City, you often have to pass the Texas bankruptcy means test. You can estimate that qualification below in Bay City. Let’s cover how you can qualify.

Chapter 7 Qualification

The first part of the means test is to understand your income in relation to the median income levels for Texas. It considers the average family size and income.

To estimate your qualification, you can take the Bay City Chapter 7 qualification calculator below that is specific to Bay City.

Finally, the most recent Texas median income levels is for cases filed on or after April 1, 2024, and can be found below. 

# of PeopleAnnual Income

If your income exceeds the median, you can move on to the second part of the means test to estimate qualification. The second part of the means test is to understand your actual expenses. You can check out our guide covering trying to qualify for Chapter 7 bankruptcy above the median.

For example, the average median rent amount in Bay City is $861, but let's say your rent is almost double that amount. Could you potentially still qualify for Chapter 7 bankruptcy because of those additional expenses? What you are able to state as ab expense is limited, and you can refer to the current national standard for the maximum amounts, but you may want to speak with your attorney about this situation.

Which Could Would You File In If You Live In Bay City?

Bay City is located in the Texas Southern district, so our understanding is that you would be filing your bankruptcy in the McAllen bankruptcy court. Here's the estimated information we have for your court:

McAllen Bankruptcy Court
Address: 1701 US-83 BUS, McAllen, TX 78501
Phone: (956) 618-8065

Does that mean you would have to drive to court?

Not necessarily. 

Please note that main meeting for a Chapter 7 bankruptcy is the 341 meeting of creditors, which is often online via Zoom or another teleconference after the COVID-19 pandemic. 

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is known as a wage-earner bankruptcy. Chapter 13 bankruptcy is a voluntary reorganization of debt.  In Chapter 13 bankruptcy, the individual has debt that they can no longer manage and often own assets that exceed state and/or federal relief. Folks file Chapter 13 bankruptcy often when they do not qualify for Chapter 7 bankruptcy.  

Most individuals in Bay City will qualify for Chapter 13 bankruptcy as long as they are below the debt limits.

Compared to Chapter 7, there is no liquidation in Chapter 13 Bankruptcy. Although, the discharge won’t be until around 3 to 5 years. The Chapter 13 bankruptcy will stay on your credit report for 7 years.

Bay City Bankruptcy Attorney Fees

When looking for a bankruptcy attorney, we recommend that you look for these 5 attributes: Rate, Reliability, Referrals, Reviews, and Relevancy. You can check our guide to find a top bankruptcy attorney in Bay City.

The estimated Chapter 7 bankruptcy lawyer fee in Bay City is: $1777 - $2642.

The estimated Chapter 13 bankruptcy lawyer fee in Bay City is: $2500 and $3825. The Chapter 13 attorney fee is often set across the district, meaning that all Chapter 13 bankruptcy attorneys in a district may charge around the same fee.

Bay City Bankruptcy Attorneys

One of the most important things to do is to find a reputable bankruptcy attorney in Bay City if you decide to hire one. This is legal advice related to finances that are going to affect your future. For example, making sure you are in the right bankruptcy chapter (Chapter 7 vs Chapter 13) could cost you thousands more and take you years longer.

Chapter 7 Bankruptcy Lawyer

As stated above, Bay City has a population of 17535. In many cases, individuals in larger cities such as Houston or San Antonio would like a bankruptcy lawyer close by. In smaller cities, I have found that individuals have questions about whether the bankruptcy will show up in the newspaper or whether friends will hear about it. This is a valid question.

Regardless, you can check the Chapter 7 bankruptcy lawyers in or near Bay City using the table below. You just need to input your zip code, and voila, you can choose which Chapter 7 bankruptcy lawyer you would like to speak to near or far away from Bay City in a free bankruptcy lawyer consultation

Chapter 13 Bankruptcy Lawyer

Filing a Chapter 13 bankruptcy in Bay City may be a bit more intensive, so you may consider a Chapter 13 bankruptcy that is closer to you. That said, with the internet and the pandemic, many of the meetings are now online and you can generally submit your documentation online as well.

How much a Chapter 13 bankruptcy attorney often charges is based on what's called a no-look fee. We do our best to track the Chapter 13 attorney fee in Bay City.

Bankruptcy Exemptions in Texas

As you live in Bay City, you are often able to use the Texas bankruptcy exemptions to help you keep your belongings.

One of the biggest questions people have is whether they are able to keep their homes in bankruptcy. This is where bankruptcy exemptions come into play. As Bay City has a home ownership % of 57.7% and an estimated estimated home value of $99594, you can understand that many people want to keep this asset. You can often keep your assets using bankruptcy exemptions.

Here are the Texas bankruptcy exemptions. The exemptions are revised on different occasions, so you may wish to check the most current information on exemptions. Also, as a reference, Texas is a place that allows you to use federal bankruptcy exemptions. You often have to choose which one to use, so a bankruptcy attorney can help you with that option.

Homestead Exemption

The homestead exemption is often broken down by age and whether you are married. 

  • Single and under 65: Infinite
  • Single is 65 or older: Infinite
  • Married and under 65: Infinite
  • Married is 65 or older: Infinite

Texas specific homestead bankruptcy exemption text: “Tex. Const. Art. XVI, §§ 50, 51; Tex. Prop. Code §§ 41.001 to 002. Unlimited for 100 acres rural (single) / 200 acres rural (family), 1 acre urban. sale proceeds exempt for 6 months after sale (renting okay if another home not acquired, Prop. 41.003). Must file homestead declaration, or court will file it for you for a fee. Due to Enron executives keeping multi-million dollar mansions, those convicted of securities violations are capped at $125,000.” (Source)

Automobile Exemption

The automobile bankruptcy exemption in Texas is Infinite.

Jewelry Exemption

The jewelry bankruptcy exemption in Texas is $12,500.

Personal Property Exemption

The personal property bankruptcy exemption in Texas is $50,000.

Special Exemption Handling for Texas

Below is specific special handling of bankruptcy exemptions in Texas.

  • Jewelry: up to $25,000 for a family
  • Personal: up to $100,000 if you have a family

Bankruptcy Help in Bay City

Unemployment can cause both frustration and angst about options. The most recent statistic I found is that the Bay City unemployment rate is 6.1%. There may be resources available to help. In addition to the unemployment rate, Bay City has a disability rate of 13.9%. As such, if you are truly in need and don’t have income, there are resources that may be available that can help you.

Check out the legal aid and free resources that may be available in Bay City.

Legal Aid and Free Resources

Here are some legal aid resources that may be helpful to you in Bay City.

The bankruptcy court and district may have free resources that are available to you. I have included the information below. 

Lastly, Bay City also has a limited English rate of 8.9% and a poverty rate of 21.3%. If you have limited English, you may check out the court websites for Texas for additional information on how you can be served. You can also see how filing bankruptcy without an attorney can work if you cannot afford a bankruptcy lawyer.

Courts and Districts in Texas

Northern District

  • 341 Pine Street, Room 2008
    Abilene, TX 79601
  • 205 SE 5th Avenue, Room 133
    Amarillo, TX 79101-1559
  • 1100 Commerce Street, Room 1452
    Dallas, TX 75242
  • 501 West 10th Street, Room 310
    Fort Worth, TX 76102-3673
  • 1205 Texas Avenue, Room 209
    Lubbock, TX 79401-4091
  • 33 E. Twohig Avenue, Room 202
    San Angelo, TX 76903-6451
  • 1000 Lamar Street, Room 203
    Wichita Falls, TX 76301


  • 600 E. Harrison St.
    Brownsville, TX 78520
  • 1133 N. Shoreline Blvd.
    Corpus Christi, TX 78401
  • 601 Rosenberg
    Galveston, TX 77550
  • 515 Rusk Street
    Houston, TX 77002
  • 1300 Victoria St.
    Laredo, TX 78040
  • 1701 W. Business Hwy 83
    McAllen, TX 78501
  • 312 S. Main, Room 406
    Victoria, TX 77901


  • 300 Willow Street Suite 104
    Beaumont, Texas 77701
  • 104 North Third Street
    Lufkin, Texas 75901
  • 100 East Houston Street Room 125
    Marshall, Texas 75670
  • 500 North State Line Avenue
    Texarkana, Texas 75501
  • 211 West Ferguson Street Room 106
    Tyler, Texas 75702


  • 2450 State Hwy. 118
    Alpine, Texas 79830
  • 501 West Fifth Street, Suite 1100
    Austin, Texas 78701
  • 111 East Broadway, Room L100
    Del Rio, Texas 78840
  • 525 Magoffin Avenue, Suite 105
    El Paso, Texas 79901
  • MG Williams Justice Center
    Bldg. 5794, Tank Destroyer Blvd.
  • 200 East Wall, Room 222
    Midland, Texas 79701
  • 410 South Cedar
    Pecos, Texas 79772
  • 655 E. Cesar E. Chavez Blvd., Room G65
    San Antonio, Texas 78206

Debt Settlement in Bay City

One of the most common alternatives to bankruptcy is debt settlement. A debt settlement firm would negotiate for a lower amount due on your debt in the case of financial hardship. The goal would be to reduce your debt in half. In this case, you would have a lower monthly payment.

If you are looking at debt settlement in Bay City, you may want to consider a national debt settlement firm to a local one in Bay City. For example, most of your creditors are probably national banks instead of local Bay City banks. As such, you can potentially get lower fees by using a national firm. You should strongly consider the pros and cons and credit score impact before taking the plunge as Ascend only recommends 2 debt settlement firms nationwide that both offer free phone evaluations.


Chapter 7 bankruptcy and Chapter 13 bankruptcy in Bay City can provide debt relief. That said, you may want to consider the cost of bankruptcy in Bay City, the different bankruptcy chapters, reputable attorneys in Bay City and alternatives to help you make the most informed decision. 

You can also take our Chapter 7 vs Chapter calculator below to help you estimate the cost and qualification of Chapter 7 bankruptcy and Chapter 13 bankruptcy in Bay City.