The Allmand Law Firm, PLLC Difference

Unlike most bankruptcy firms in the Dallas / Fort-Worth area, Allmand Law Firm, PLLC spends the time to understand the complete financial picture for every one of our clients. We provide resources, tools and advice to address the unique needs of North Texans.

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

Posted By admin || 4-Nov-2009

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.

Have a Bankruptcy Related Question? Let us Know

If you would like to set up a free consultation with one of our bankruptcy attorneys feel free to contact us today.

Categories: Chapter 7 Bankruptcy
Blog Home