Do I Make Too Much Money To File Chapter 7 Bankruptcy?

Confused at Electric BillFor 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 .

Median Income For Texas

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.

 For Special Cases

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.

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By | 2017-12-13T02:21:17+00:00 November 4th, 2009|Chapter 7 Bankruptcy|Comments Off on Do I Make Too Much Money To File Chapter 7 Bankruptcy?