Does your failed Texas LLC or corporation need to file bankruptcy?

Possibly not, unless there are significant assets to be sold off, or something that a bankruptcy trustee could pursue or recover for the benefit of creditors. Corporations and LLC's do not get a discharge of debts in chapter 7 bankruptcy.

Only individuals, that is, real living people get a forgiveness of debt in chapter 7 bankruptcy, not entities like corporations or LLC's. If an entity files chapter 7 bankruptcy, the bankruptcy trustee will liquidate or sell the assets, then distribute the money to creditors according to a priority schedule set out in the Bankruptcy Code.

Corporations and LLC's do receive a discharge of debts in chapter 11, but only after having had a reorganization plan approved, which the creditors can vote on, subject to being approved by the judge over the creditors' objections in certain cases. 

J Thomas Black
Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization