For debtors considering Chapter 7 bankruptcy, determining if their income level makes them eligible for Chapter 7 bankruptcy involves taking a “means test.”  Typically, debtors who earn above the median income level for their family size must file Chapter 13 bankruptcy.

The median income for Texas is:

One person: $38,545

Two people: $54,908

Three people: $57,053

Four people: $66,400

What this means is that if you are a single person or a one person household earning less than $38,545 your income qualifies you for Chapter 7 bankruptcy.  Or if you are a two person household, (example: parent/child) you would qualify for Chapter 7 bankruptcy with less than $54,908 in income.  If you earned more than the median income, even if it was just by $50 you may need to file Chapter 13 bankruptcy. However, in some cases debtors who earn more than the median income are eligible to file Chapter 7 bankruptcy if they have other large expenses like a mortgage, car payment, medical bills, etc. It is important to go to a skilled bankruptcy attorney who can analyze your situation and make a recommendation on which chapters of bankruptcy your qualify for.

Related Posts