Bankruptcy Lawyer in McKinney, Texas (Collin County): Your Guide to a Fresh Financial Start
If overwhelming debt is impacting your life in McKinney or elsewhere in Collin County, filing for bankruptcy may be the financial reset you need. Although bankruptcy is governed by federal law, Texas exemptions offer powerful protections that can help you keep your home, car, and other assets during the process. Understanding how bankruptcy works in Texas—and how Collin County cases are handled—can help you avoid costly mistakes and start fresh.

Why You Need a Bankruptcy Lawyer Near You in McKinney, TX

Filing bankruptcy is more than just filling out forms — it’s a complex legal process with deadlines, documentation, and decisions that affect your finances for years. Errors can result in:

  • Losing property you intended to keep
  • Denied debt discharge
  • Delays or dismissals in the bankruptcy courts serving McKinney and Collin County
  • Additional financial and emotional strain

A qualified bankruptcy lawyer in McKinney will help you navigate the local court procedures, choose the right exemptions, and make sure your rights are fully protected from start to finish.

Bankruptcy Lawyer in McKinney Texas in Collin County.

How to File Bankruptcy in McKinney / Collin County: Step-by-Step

Step 1: Choose the Right Bankruptcy Chapter

Most people in McKinney and Collin County file under Chapter 7 or Chapter 13:

  • Chapter 7 Bankruptcy: Often called “liquidation” or “fresh start,” this wipes out most unsecured debt in 3–6 months. Texas property exemptions typically allow you to keep your home, car, and personal belongings.
  • Chapter 13 Bankruptcy: This sets up a repayment plan over 3–5 years, helping you catch up on missed mortgage or car payments without losing assets.
  • Other Chapters: Farmers and ranchers in rural Collin County may qualify for Chapter 12 debt restructuring.

Step 2: Credit Counseling & Filing Your Petition

Before filing, you must complete a credit counseling course from an approved provider. Your bankruptcy lawyer will then file your petition, listing all your assets, income, debts, and expenses.

Step 3: Automatic Stay Begins

Once your case is filed with the bankruptcy court, an automatic stay takes effect, immediately stopping creditors from:

  • Garnishing your wages
  • Suing you
  • Repossessing vehicles
  • Harassing you with collection calls

Step 4: 341 Meeting of Creditors

About a month after filing, you’ll attend a 341 meeting (also known as a meeting of creditors). While it’s a required step, creditors rarely attend. The trustee will review your paperwork and ask questions. Cases from McKinney and Collin County are typically handled by the U.S. Bankruptcy Court for the Eastern District of Texas.

Bankruptcy Court Location for Collin County Residents:
U.S. Bankruptcy Court – Eastern District of Texas (Plano Division)
660 N. Central Expressway, Suite 300
Plano, TX 75074
Phone: (972) 509-1240
Hours: Monday–Friday, 8:00 AM – 4:30 PM

Step 5: Discharge or Repayment Completion

  • Chapter 7: Your qualifying debts are typically discharged within 3–6 months.
  • Chapter 13: You must complete the repayment plan (3–5 years) before remaining eligible debts are discharged.

Texas Bankruptcy Exemptions: What You Can Keep in McKinney and Collin County

Texas allows you to choose between state and federal exemptions. You cannot combine both.

Texas Exemptions (For Residents of Texas 2+ Years)

Texas has some of the most generous bankruptcy exemptions in the country:

  • Homestead Exemption:
    • Unlimited value (subject to certain federal caps)
    • Covers up to 10 acres in urban areas like McKinney, or 100–200 acres in rural parts of Collin County
    • Protects sale proceeds for up to 6 months
  • Personal Property:
    • $50,000 exemption for individuals; $100,000 for families
    • Includes household goods, clothing, one vehicle per household member, trade tools, retirement accounts, unpaid wages, health aids, and more
  • Not Exempt Under Texas Law:
    • Bank account balances
    • Stocks and investments not in retirement accounts
    • Tax refunds

Federal Exemptions (If You’ve Lived in Texas Less Than 2 Years)

  • $27,900 homestead equity (2022)
  • $4,450 for one vehicle
  • $14,875 for household goods (capped at $700 per item)
  • $1,875 for jewelry
  • Wildcard exemption: $1,475 plus unused homestead exemption
  • Full protection for retirement accounts and government benefits

IRS Seizure Rules for Collin County Residents

The IRS follows federal tax collection laws—not state exemptions—when seizing property. It can seize almost anything except:

  • Modest household goods (under $1,650 in value)
  • Basic tools of your trade (up to $1,100)
  • Social Security and certain government benefits
  • Wages for child support
  • Your home (only with IRS director approval, which is rarely denied)

Homestead & Residency Rules in McKinney / Collin County

To claim Texas exemptions, you must have lived in the state at least 2 years.
If you bought your McKinney home within the last 3 years and 4 months, or transferred assets to avoid creditors, a federal homestead cap may apply ($170,350 as of current limits).

Risks of Filing Bankruptcy Without a McKinney Bankruptcy Lawyer

Filing without legal help is risky. You may:

  • Miss deadlines or file incorrect paperwork
  • Lose property by selecting the wrong exemption
  • Fail to stop foreclosure or repossession
  • Have your case dismissed or debts denied discharge
  • Be taken advantage of by aggressive creditors

Hiring a bankruptcy attorney in McKinney ensures your case is handled properly and your financial future protected.

Why Choose Our McKinney Bankruptcy Lawyers in Collin County?

Our attorneys understand the ins and outs of the Eastern District of Texas, including court rules, trustee preferences, and how to use exemptions to protect your assets. We’ve helped countless McKinney and Collin County residents file for Chapter 7 and Chapter 13 bankruptcy and get a true fresh start.

Bankruptcy Trends in Texas and Collin County

  • Texas averages over 70,000 bankruptcy filings per year
  • Collin County, with its growing population, contributes a rising number of Chapter 13 cases
  • Chapter 13 is more common in McKinney than Chapter 7 due to high homeownership rates
  • Chapter 7 typically takes 4–6 months; Chapter 13 runs 3–5 years

For more data, see the U.S. Courts Bankruptcy Statistics.

Take the First Step Toward Financial Relief — Contact a McKinney Bankruptcy Attorney Today

If you’re searching for a bankruptcy lawyer near me in McKinney or Collin County, don’t risk going through the process alone. Contact our experienced legal team today for a free consultation. Let us help you protect your home, reduce your stress, and rebuild your financial future.