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You cannot qualify for Chapter 7 Bankruptcy in Texas without qualifications. But there are a couple of ways in which you can become eligible by passing the bankruptcy means test.

  1. If your current household income is lower than the median income for Texas for your family size, it means that you can qualify.
  2. Also, you can qualify by taking the means test calculation to find out if you can pay a part of your unsecured debts through Chapter 13 bankruptcy.

We will dwell mostly on the first version, although Texas means test calculator will tackle both options for you.

Texas Chapter 7 Income Limits

Every half-year, the Texas Chapter 7 income limits that shed light on whether the Texas median income is higher than your household income are reset. The name of that table is Census Bureau Median Family Income By Family Size, and the most recent dated as from May 1, 2020, is shown below.

To qualify, look at the average of the monthly income in your household by using the average household earnings from the past six calendar months. When you have the median monthly income, multiply the number by 12 to annualize it. The next step is to compare the Texas median income shown below to the annualized income. Please remember that you will have to part with $9,000 for every household member above nine.

# of PeopleAnnual Income
1$50,902
2$66,899
3$73,948
4$86,259
5$95,259
6$104,259
7$113,259
8$122,259
9$131,259

Texas Mean Test Calculator

Other distinctive considerations include if you are married and if you have other means of non-regular income that can be incorporated into your average income.

We have a more accurate Texas Chapter 7 calculator that considers these variables, plus it compares Chapter 7 through the Chapter 7 Statement of Your Current Monthly Income to varied options like debt settlement and Chapter 13.

The calculator below provides a rough version of whether you qualify for a Chapter 7:

 Texas Mean Test 

Say, for instance, that your income is higher than the Texas Chapter 7 income limit. The good news is that that doesn’t mean that you can’t file for Chapter 7 bankruptcy.

The next way of qualifying is by taking the means test calculation to establish if you are capable of paying a part of your unsecured debt by a Chapter 13 bankruptcy. If you can’t pay, you might still be a suitable candidate for Chapter 7 bankruptcy. If you income is higher than the Texas Chapter 7 income limit, you may consider speaking with a reputable bankruptcy attorney. to understand whether you still qualify for a Chapter 7 bankruptcy. You may consider reading 5 Things We Look For in a Bankruptcy Attorney to see how we partner with attorney or reach out to us directly.

Post Author: Ascend

Group of guest writers and industry experts who have specific expertise in Chapter 13 bankruptcy, Chapter 7 bankruptcy, debt relief, debt settlement, and debt payoff.

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