Texas Bankruptcy Means Test

Note: The Bankruptcy Means Test varies from state to state and is based on state median income. This page deals specificially with the Texas Bankruptcy Means Test. For means test and other bankruptcy information specific to other states, please see the state links to the left.

Texas Bankruptcy Means Test Requirements

The new bankruptcy laws enacted in 2005 also require that debtors pass a means test to qualifiy for filing a Chapter 7 bankruptcy (as opposed to a Chapter 13 bankruptcy where you propose a plan to repay your debts). There are two ways to pass the Texas bankruptcy means test:

1. the debtor's annual income (calculated using the average gross income for the six month period prior to filing) must be below the median income for the state of Texas. Census Bureau statistics for state median income by family size can be found here (for cases filed on or after November 1, 2011).

2. If your income exceeds the Texas median income, you may still qualify for Chapter 7 bankruptcy based on results of Form 22A: Chapter 7 Statement of Current Monthly Income and Means-Test Calculation. . This assesses your ability to repay your debts based on your projected disposable income over the next five years.

For more detailed information and expertise advice concerning a Texas bankruptcy means test, you might want to consult a Texas Bankruptcy Attorney.