Bankruptcy Means Test

Bankruptcy Means Test in Texas: Do You Qualify for Chapter 7 Bankruptcy?

The bankruptcy means test is a key step in determining whether you qualify for Chapter 7 or Chapter 13 bankruptcy in Texas. Designed to ensure that only those who truly need debt relief can file for Chapter 7, the test evaluates both your income and allowable expenses. If your income falls below the state median, you may qualify for Chapter 7, which discharges most unsecured debts. If your income exceeds the threshold, you must pass a disposable income test, or you may need to pursue Chapter 13, which involves a repayment plan.

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