Bankruptcy laws do not vary from one state to another. Meaning, laws are
the same for all states. However, when you file bankruptcy each state
may have different median income amounts you need to meet in order to
qualify. Exemptions you qualify for may also vary depending on the type
of property. It is important debtors discuss their situation with their
bankruptcy attorney to understand state and federal exemptions available
The means test helps debtors learn if they qualify for
bankruptcy. The test also shows the court you meet required standards to file. When
the bankruptcy code was revised in 2005, the Bankruptcy Abuse Prevention
and Consumer Protection Act became law, thus, requiring debtors to take
the means tests. It reviews household income of the debtor but the median
amount may vary from one state to another.
If your income is under the median amount you may qualify for
Chapter 7 bankruptcy. If it is above the amount you may qualify for
Chapter 13 bankruptcy. Your attorney will review information with you so you know which chapter
provides the best solution for your situation. When it comes to creditors,
each state may have different options in how they can pursue a debtor
not in bankruptcy.
For instance, creditors can garnish wages in certain states to collect
on a debt. If wages cannot be garnished a bank account is another option.
Bankruptcy can help stop or prevent such collection actions, but it helps
to review with your attorney possible forms of collection debt collectors
can do in your state.
At Allmand Law Firm, PLLC, our attorneys have decades of experience helping
Texans find lasting relief from debt. If you are considering bankruptcy
or wish to learn more about your debt relief options,
contact our Dallas / Fort Worth bankruptcy attorneys for a free financial empowerment session.