Bankruptcy for Non-U.S. Citizens in Texas: What Are Your Options

Can Non-Citizens File for Bankruptcy in Texas?

Absolutely. If you’re an immigrant struggling with overwhelming debt in Texas, bankruptcy might be an option for you regardless of your citizenship status. Many non-U.S. citizens mistakenly believe they don’t qualify for bankruptcy protections, but U.S. bankruptcy laws don’t require citizenship. Instead, eligibility depends on factors like residency, assets, and income.

Whether you’re a permanent resident, visa holder, DACA recipient, or even undocumented, you may still have legal pathways to debt relief. The key is understanding your options and how they affect your immigration status.

How Does Bankruptcy Affect Your Immigration Status?

How Bankruptcy Affects Immigration Status.

Filing for bankruptcy does not automatically affect your visa, green card, or immigration process. However, certain situations could raise concerns, particularly if:

• You’re applying for a green card or citizenship and need to prove “good moral character.”
• Your financial history impacts a sponsor’s affidavit of support.
• You have prior fraud-related debt issues that could be scrutinized.

Bankruptcy is a legal right under U.S. law, and thousands of immigrants file every year without immigration consequences. Consulting an experienced bankruptcy and immigration attorney can help ensure your filing won’t interfere with your status.

What Types of Bankruptcy Can Non-Citizens File in Texas?

There are two main types of bankruptcy available to individuals.

Chapter 7 Bankruptcy: A Fresh Start

• Eliminates most unsecured debts such as credit cards, medical bills, and payday loans.
• Typically completed within three to six months.
• Requires passing the means test, which determines if your income is below a certain threshold.
• Does not require repayment of debts after discharge.

Best for those with low income and few assets who need a quick financial reset.

Chapter 13 Bankruptcy: Debt Repayment Plan

• Creates a three-to-five-year repayment plan based on your income.
• Helps protect assets such as your home or car.
• Can be used to catch up on missed mortgage or tax payments.

Best for those with a steady income who want to reorganize and repay their debts.

Do You Need a Social Security Number to File for Bankruptcy?

No. While having a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) can make the process smoother, bankruptcy courts do not require an SSN. If you don’t have one, you may need to provide additional documentation, such as:

• A government-issued ID
• Proof of residency, such as a lease agreement or utility bill
• Employer pay stubs or tax returns

Courts primarily look at whether you have assets or income in the U.S. rather than your legal status.

Can Undocumented Immigrants File for Bankruptcy in Texas?

Yes. Being undocumented does not disqualify you from bankruptcy. However, there are special considerations to keep in mind:

• You may face challenges proving your identity without an SSN or ITIN.
• Some creditors might argue that debts incurred without legal work authorization should not be discharged.
• If you plan to apply for legal status later, certain financial decisions could be reviewed in your immigration case.

This is why working with both a bankruptcy attorney and an immigration lawyer is critical. They can ensure that bankruptcy is the right move for your situation.

How to File for Bankruptcy as a Non-Citizen in Texas

The process for non-citizens is nearly identical to that for U.S. citizens. Here’s a step-by-step breakdown.

1. Consult an attorney to get legal guidance tailored to your immigration and financial situation.
2. Gather financial documents such as tax returns, pay stubs, debts, assets, and bank statements.
3. Take a credit counseling course, which is a required online course before filing.
4. File a bankruptcy petition with the Texas bankruptcy court.
5. Attend the 341 Meeting of Creditors, a brief hearing where creditors can ask questions.
6. Complete a debtor education course, which is a second required course before receiving your discharge.
7. Receive your debt discharge. If successful, most of your debts will be wiped clean.

What Debts Can and Cannot Be Erased in Bankruptcy?

Consumer Rights for Non-Citizens in Debt.

Debts You Can Get Rid Of:

• Credit cards
• Medical bills
• Personal loans
• Past-due utility bills

Debts That Typically Cannot Be Erased:

• Child support
• Most taxes
• Student loans, except in extreme hardship cases

If you have secured debts, such as a mortgage or car loan, bankruptcy can help restructure payments, but it won’t erase the debt unless you surrender the asset.

Why Choose Kisch Consumer Law for Your Bankruptcy Case?

At Kisch Consumer Law, we specialize in helping non-citizens navigate bankruptcy without jeopardizing their immigration status. Our team understands the complexities of both bankruptcy and immigration law, ensuring your financial future is protected.

• Immigration-safe bankruptcy strategies
• Bilingual legal support
• Assistance for those without an SSN
• Flexible payment plans

For expert legal advice, visit Kisch Consumer Law.

FAQs About Bankruptcy for Non-Citizens in Texas

Can bankruptcy help me avoid deportation?
No, but it can prevent financial hardship that might make it harder to adjust your status.

Will I lose my green card if I file for bankruptcy?
Filing alone won’t impact your green card, but if you’ve committed fraud, it could raise red flags.

What if I don’t have a job? Can I still file for bankruptcy?
Yes, especially if you file Chapter 7. For Chapter 13, you need an income to make payments.

Do I need an immigration lawyer before filing?
Not always, but if you’re in the process of adjusting your status, legal advice is a must.

Bankruptcy Isn’t the End—It’s a New Beginning

Filing for bankruptcy as a non-citizen in Texas might feel overwhelming, but it’s often the best way to wipe the slate clean and rebuild your financial future. The key is knowing your rights, choosing the right bankruptcy type, and working with experienced attorneys who understand both debt relief and immigration laws.

If debt is holding you back, take control today. Contact Kisch Consumer Law to explore your options.