Do I Qualify For Chapter 7 In Texas?

For many people, Chapter 7 Bankruptcy is a better choice than Chapter 13 bankruptcy. This is because most of the debt is immediately cancelled following the filing, the filing period is shorter, and the process is much more straightforward.

In order to qualify for a Chapter 7 bankruptcy, you must pass what’s called the means test. This test considers your income, expenses, household size, debt, and other factors. If your income is less than the median income for a household of the same size in Texas, then you will almost certainly pass the means test.  You determine your income based on your gross income over the last six months multiplied by 2. If you are unable to pass the means test but expect your income to decline over the next few months, waiting to file might be a good option.

This chart shows the median income by household size in Texas for cases filed after May 1, 2022:

While income is the most important factor, it is not the only factor. If you earn more than the median income for a household of your size, you may qualify for Chapter 7 bankruptcy. Call our Dallas bankruptcy attorney office today to find out if you qualify for fast debt relief.