What Is the Means Test Before filing for Chapter 7 bankruptcy in Texas?
(214) 282-5024. Learn more about the means test and how it applies to filing for Chapter 7
bankruptcy in Texas. Discover the essential information you need to know before proceeding
with your bankruptcy case at The Law Offices Of Veronica Deaver.
What is the Means Test Before Chapter 7 in McKinney TX.? The means test is a formula to
determine if a debtor has enough disposable income to repay their debts under Chapter 7
bankruptcy. If the debtor’s disposable income is above a certain amount, they are presumed to be
able to repay their debts and cannot file for Chapter 7 bankruptcy in McKinney.
The Texas-adjusted median income determines the income level at which the means test applies. For 2023, the Texas-adjusted median income is $7,475 per month for a single person and $12,475 per month for a married couple.
Suppose your current monthly income is below the Texas-adjusted median income. In that case, you are automatically presumed to have filed for bankruptcy in good faith and can file for Chapter 7 bankruptcy without taking the means test.
If your current monthly income exceeds the Texas adjusted median income, you must take the means test to determine if you qualify for Chapter 7 bankruptcy. The means test will consider your income, expenses, and debts to determine if you have enough disposable income to repay your debts.
Many expenses are allowed under the means test, such as housing, food, transportation, and medical expenses. If you have high costs, you can pass the means test even if your income is above the median.
If you fail the means test, you may still be able to file for Chapter 7 bankruptcy if you can show that your circumstances make it impossible to repay your debts. This is known as the “hardship exemption.”
It is essential to speak with an experienced bankruptcy attorney to determine if you qualify for Chapter 7 bankruptcy and to help you complete the means test.
Here are the steps on how to file for Chapter 7 bankruptcy in Texas:
- Gather your financial information. This includes your income, expenses, debts, and assets.
- Schedule a consultation with a bankruptcy attorney. The attorney can help determine if bankruptcy is right for you and walk you through the process.
- Determine if you qualify for Chapter 7 bankruptcy. This will involve taking the means test.
- Get credit counseling. This is required before you can file for bankruptcy.
- Prepare your bankruptcy petition. This is the document that you will file with the court.
- File your bankruptcy petition. This can be done online or in person.
- Attend a meeting of creditors. This is a hearing where creditors can ask you questions about your bankruptcy.
The process of filing for Chapter 7 bankruptcy in Texas can be complex. It is crucial to speak with an experienced bankruptcy attorney to get help with the process. Learn about the means test and how it applies to filing for Chapter 7 bankruptcy in Texas. Discover the essential information you need to know before proceeding with your bankruptcy case at The Law Offices Of Veronica Deaver. Serving Dallas, Lewisville, Denton, Frisco, Plano, TX. Dallas Bankruptcy Attorney. Lewisville Bankruptcy Lawyer. Call (214) 282-5024.
