Bankruptcy Attorney Serving McKinney, Texas

Serving McKinney Bankruptcy Clients

McKinney residents in Collin County file bankruptcy in the Eastern District of Texas — your courthouse is in nearby Plano at 660 N. Central Expressway. Chapter 13 repayment plans are administered by Trustee Carey D. Ebert (planoch13.com). McKinney's high median income (~$97,000) leads many residents to assume they don't qualify for Chapter 7. The means test uses Texas state median figures — not Collin County's local median — and many high-income McKinney residents qualify.

Our Dallas office is approximately 40 miles from McKinney, making us an accessible choice for Collin County residents. We represent clients throughout Collin County in both Chapter 7 liquidation cases and Chapter 13 repayment plans. Whether you are facing wage garnishment, foreclosure, creditor lawsuits, or simply overwhelming debt, a bankruptcy filing can provide immediate relief through the automatic stay.

A free initial consultation costs you nothing and typically takes 30-45 minutes. During that call, we review your income, assets, and debts to determine which bankruptcy chapter — if any — makes sense for your situation. There is no pressure and no obligation.

Learn more: How to file bankruptcy in Texas  ·  Chapter 7 vs Chapter 13  ·  What does bankruptcy cost?

Do You Qualify? The Chapter 7 Means Test

McKinney's median household income is approximately $97,000 — well above the Texas state median of approximately $65,000. Many McKinney residents assume they earn too much to qualify for Chapter 7 bankruptcy. That assumption is often wrong. The bankruptcy means test compares your income to the Texas state median, not the McKinney local median. A household that appears high-income locally may still pass the means test and qualify for Chapter 7 relief.

If your income exceeds the state median, a second test looks at your disposable income after allowed expenses. Many filers who fail the first test still qualify under the full means test calculation. The only way to know for certain is to run the numbers for your specific household — which we do at no charge during your consultation.

Your Bankruptcy Court: Eastern District of Texas, Sherman Division

Where your bankruptcy case is filed depends on your county of residence — not where your attorney's office is located. McKinney residents in Collin County file in the Eastern District of Texas, Sherman Division of the federal bankruptcy court system.

You generally do not need to appear at the courthouse for your case. Most hearings are conducted by phone or video conference. The main in-person event is the 341 Meeting of Creditors, which typically lasts 5-10 minutes and is held at a location convenient to you (not the main courthouse).

Why McKinney Residents Choose Herrin Law

We have filed 13,000+ bankruptcy cases across North Texas, with extensive experience in both the Dallas and Fort Worth Divisions of the Northern District of Texas and the Eastern District of Texas. That volume matters: we have seen virtually every creditor tactic, trustee preference, and local court procedure.

Our approach is straightforward. We tell you what your options are, what each option costs, and what to expect at every stage. If bankruptcy is not the right answer for your situation, we will tell you that too — and explain what alternatives exist.

Fees are flat-rate, not hourly. You know the total cost before you commit.

Getting to Our Office

From McKinney: Take US-75 South approximately 40 miles to our office at 12001 N. Central Expressway, Suite 920, Dallas, TX 75243.

Free parking is available in our building. We are also accessible by DART (Dallas Area Rapid Transit) via the Bush Turnpike Station on the Red and Orange Lines (approximately 2 miles from our office). We offer evening and weekend appointments by arrangement.

Frequently Asked Questions

How long does bankruptcy take in the Eastern District of Texas, Sherman Division?

Chapter 7 cases typically close in 3 to 5 months from the filing date. Chapter 13 cases run for the length of the repayment plan — typically 3 to 5 years, during which most collection activity is stopped by the automatic stay.

Will I lose my car or home if I file bankruptcy?

In most cases, no. Texas has some of the most generous bankruptcy exemptions in the country. The homestead exemption is unlimited in value (with acreage limits). The vehicle exemption covers one motor vehicle per licensed household member. Retirement accounts are fully exempt. Most Chapter 7 filers keep all of their property.

How does bankruptcy affect my credit score?

A Chapter 7 bankruptcy remains on your credit report for 10 years; Chapter 13 for 7 years. However, most clients see their credit scores begin recovering within 12-18 months of filing. The accounts that were dragging your score down — delinquent accounts, judgments, collections — are discharged, and you start building a clean credit history from the discharge date forward.

Do I have to go to court?

You will attend one hearing called the 341 Meeting of Creditors, typically held at a local federal building and lasting 5-10 minutes. This is not a courtroom proceeding — it is an informal interview conducted by the trustee. Your attorney will be with you. In most straightforward cases, no other court appearances are required.

Can I keep my retirement savings?

Yes. 401(k), IRA, pension, and most other retirement accounts are 100% exempt from creditors in bankruptcy under both Texas state law and federal law. You do not need to cash out retirement accounts to pay debts before filing.