April 3, 2024 By:
The means test is potentially a two-step process. First, the test will look at your income to determine whether it is below the Chapter 7 income threshold. This is the median income in the state, based on the size of your household. If your income over the last six months is below the state’s median income for your size of household and there’s no reasonable expectation that your income will increase, you automatically qualify and don’t have to worry about the second step.
You may still qualify for Chapter 7, though, even if your income exceeds the median income in your state. However, you will need to document for the bankruptcy court how much of your income went to “necessaries,” such as rent/mortgage payments, groceries, medical bills and clothing. This will allow the court to determine the extent of your discretionary income. If your “disposable” income is low enough, you will be allowed to file for permanent discharge of debt under Chapter 7.
At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment to discuss your rights and options an in bankruptcy, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Kaufman County, Rockwall County, Collin County, Dallas County, Hunt County and the surrounding counties.