Texas Bankruptcy Means Test

Filing Bankruptcy In Texas Yourself

The bankruptcy means test was created to aid in identifying debtors who have the ability to pay their unsecured debts. After being identified these debtors are encouraged to pay these debts through a repayment plan under a Chapter 13 bankruptcy. Those without the “means” to pay their debts under a Chapter 13 bankruptcy may qualify for a Chapter 7 bankruptcy. Talk to an experienced bankruptcy lawyer if you want to know whether you qualify for a Chapter 13 or a Chapter 7 bankruptcy.

Median Income

The means test focuses both on your income and expenses. So if your income is more than the Texas median income then you cannot file a Chapter 7 bankruptcy. If it’s less than the Texas median income, then you are eligible to file a Chapter 7 provided you meet other legal requirements. People who qualify for a Chapter 7 bankruptcy are people whose expenses and debts are more than they can afford to pay back. The following are the Texas median incomes according to household size for cases filed between November 1, 2019 and March 31, 2020:

  1. Household of 1: $49,996
  2. Household of 2: $65,708
  3. Household of 3: $72,632
  4. Household of 4: $84,724

There is an additional 9,000 for each individual in excess of 4.

What Happens If You Don’t Pass The Means Test

Texas Bankruptcy Means TestYou are considered to have passed the means test if your family’s income is less than the Texas (or the state you reside in) median income for your household size. People with incomes that exceed the state’s median income are often people who have the means to pay a portion of their unsecured debts. That means that they have disposable income that is sufficient to pay 25% or more of their unsecured debt. Your disposable income is the amount that remains after you deduct certain expenses from your current monthly income based on IRS national standards.

If you should multiply your disposable income by 60 and the resulting amount is less than $7,475, then you have passed the means test and qualify for a Chapter 7 bankruptcy. But if the resulting amount is more than $12,475 you cannot file for a Chapter 7. However, there are exceptions to this rule in situations where you recently lost your job or your income was reduced.  An experienced bankruptcy lawyer can help you determine if such exceptions apply to your situation.

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Why A Chapter 7 Bankruptcy?

People who want most or all of their debts eliminated so that they can get a “fresh start” often file for a Chapter 7 bankruptcy.  Under a Chapter 7 bankruptcy a trustee sells all your non exempt assets and the money is divided among your creditors. The remaining debt is discharged and creditors are not allowed to collect any debt that was discharged. If you only own property that is exempt, you get to keep all that property and your debts are discharged. However, just because you are eligible to file for a Chapter 7 bankruptcy does not mean that you should file. There could be other less drastic alternatives that may benefit you more than bankruptcy.

You may also be interested in…

  1. Immigration Lawyers In Texas
  2. Texas Assumption Transactions
  3. Culpable Mental States In Texas

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Immigration Law In Texas

Immigration Lawyers In Texas

Immigration laws determine who becomes a U.S citizen or who gets allowed to enter the country to become a student, worker, refugee, or permanent resident. Immigration affects states differently in terms of economics and population. It may lead to a state having to adjust how it does public services and law enforcement. For example, in some counties in Texas police are involved in finger printing and checking the criminal status of immigrants that are in the country illegally.  If you are arrested for being an illegal alien, you will need an experienced immigration lawyer that understands your desire to live, work and stay in the United States.

Immigration Judges

People arrested for being in the U.S. illegally are presented before an immigration judge in a formal court proceeding. The judge decides whether you are to be allowed to remain in the U.S., removed or deported.  The judge may grant any type of immigration relief or benefit to a foreign national and that individual’s immediate family. The Houston Immigration court has nine judges and it falls under the Jurisdiction of the Office of the Chief Immigration judge, which is part of the Executive Office for Immigration Review (EOIR).

Cases Immigration Lawyers Handle In Texas

The types of cases immigration lawyers in Texas can assist you with include:

Business Immigration

Family Based Immigration

  • When the immediate family members of a U.S. citizen or a lawful permanent resident wants to apply for citizenship in the United States. More on Family Based Immigration.

Employee Visas & Permanent Residency

  • When applying for a visa for company employees or when applying for permanent residency status at the U.S. embassies or consulates

Citizenship & Naturalization

  • When you qualify for naturalization and need help assembling all the needed documents

Investor Visas

  • When you to come to the U.S. to invest in at least 50 percent of a business or for international trade and need a visa

Seeking Asylum

  • When you are an asylum seeker because of persecution or well rounded fear of persecution. See also…Houston Asylum Attorneys

Any immigration issue you have can be handled by an experienced immigration lawyer in Texas.  This includes applying for permission to travel, adjustment of status and even Green Card renewals.

The Immigration Process

You can immigrate through family, employment and on humanitarian grounds. For you to immigrate through family, you must have a family member that is either a citizen, holder of specific types of visas, or permanent resident of the United States. That family member can file a petition for their immediate family members that live in the U.S. or outside of the country.

 To work in the United States you will need a high-skilled Visa such as the H-1B Visa.  You can then apply to remain permanently in the United States. People who want to immigrate on humanitarian grounds include refugees or people that face persecution in their home countries.  People who receive immigrant status have been granted permission to permanently reside in the United States. The immigration process is very complex, but an experienced immigration lawyer can help you to easily navigate the process by using different application strategies.

Houston Asylum Lawyer – Top Texas Asylum Attorneys

Qualifying for Asylum

Asylum seekers must prove that they face persecution in their home countries because of their political opinion, race, religion, nationality or membership in a particular social group. Refugees and displaced people are also eligible for asylum. Continue reading “Houston Asylum Lawyer – Top Texas Asylum Attorneys”

Employment Based Immigration Attorney – Texas – Houston

Employment Based Immigration Attorney

People thinking of immigrating to Texas and Texan employers thinking of hiring foreign qualified workers should hire a lawyer to help them navigate the complex immigration system.

Employment based immigrations is necessary sometimes to fill positions in industries such as energy, engineering, transportation and more that exist in Texas cities like Houston. Continue reading “Employment Based Immigration Attorney – Texas – Houston”

Form I 829 – Entrepreneur Application To Remove Conditions Notices – 18 Months Valid Proof of Status

Application To Remove Conditions

Petitioners who file for Form I-829 Petition by Entrepreneur to Remove Conditions on permanent resident status,  will now receive a Form I-797 receipt notice that they can present with their form I-551- (Permanent Resident Card). Continue reading “Form I 829 – Entrepreneur Application To Remove Conditions Notices – 18 Months Valid Proof of Status”

Texas Assumption Transactions

An Assumption Transaction is the transfer of responsibility for repaying a previously obtained loan.

A real estate buyer may “assume” a loan on the property already in existence between the lender and the seller.

After an agreement has been signed, the new buyer will take over payments and receive the property.


Check out Real Estate Lawyer on Foreclosure Auctions


In an assumption transaction, the buyer takes title to property by virtue of an “assumption deed” that typically contains both a vendor’s lien and general or special warranties. Continue reading “Texas Assumption Transactions”

How to Buy a Foreclosure Home in Texas

Foreclosed homes can be purchased in a non-judicial foreclosure sale (typically held on the courthouse steps) or through judicial foreclosure (by a judge’s order)

For those unfamiliar with the process, there are numerous legal pitfalls in purchasing a home in foreclosure the unprepared purchaser can avoid through due diligence. Continue reading “How to Buy a Foreclosure Home in Texas”

Texas Open Container Law for Passengers

Texas Drivers should be conscious about the Texas Open Container Law before getting behind the wheel.

Open Container Law Explained

Simply put, the law in Texas prohibits a person to have an alcoholic beverage in the car that is opened, has a seal that has been broken, or that the alcohol has been partially consumed or empty. Continue reading “Texas Open Container Law for Passengers”