Qualifying for Bankruptcy in Texas
How Do I Know If I Qualify For Bankruptcy?
There are a number of factors that determine your ability to qualify for bankruptcy protection. There are income requirements, time requirements between multiple filings, and requirements with respect to the amount of debt.
Income Requirements For Bankruptcy in Texas
If you earn below the median income for a household of your size in the state of Texas, then you are generally qualified to file bankruptcy, assuming that the other qualifications are met that are listed below. An example of the kind of income that would qualify you for bankruptcy might be as follows. If you have a household of 1 and earn $36,000 gross income in Texas, then you would be below the median income which is about $42,000 for a household of 1 in Texas. If you earn $45,000 in Texas and have a household the size of 2, then you still qualify because the median income for a family with a household of 2 is set at a higher amount. If you call the bankruptcy law office, you can receive a consultation you over the phone where possible and certainly the attorney can review your income and household size to determine whether you qualify according to this criteria.
Additionally, if you make more than the median income for your household size in Texas, you may still qualify to file bankruptcy according to your budget of income and expenses. For example, if you are a kidney patient, with expensive ongoing out-of-pocket medical expenses, then you may still qualify for chapter 7 bankruptcy despite being over the median. The law firm will review your expenses with you and compare it to your income according to the bankruptcy means test. By doing so, the attorney will be able to determine whether you have a disposable income at a low enough level to still qualify you for ch. 7 bankruptcy protection.
Time Requirements For Texas Bankruptcy
If you have filed bankruptcy within the last 8 years, you will be required to wait before filing chapter 7 bankruptcy again until 8 years has passed from the time you originally filed for bankruptcy protection. If you filed bankruptcy but did not receive a discharge, this requirement may not be in effect for you and you can discuss your options with your bankruptcy attorney arlington tx in the office or over the phone in a free bankruptcy consultation. For a chapter 13 bankruptcy, you will be required to wait generally 3 or 4 years from the time of your chapter 13 bankruptcy discharge.
Debt Amount Requirements
There is not a minimum amount of debt for which a person can file bankruptcy; however, it becomes impractical to file bankruptcy for small amounts which could possible be paid or settled directly with the creditor in lieu of filing bankruptcy. There are also maximum amounts of debt which can be discharged in a chapter 7 bankruptcy before the bankruptcy is forced into a chapter 11 bankruptcy status. Chapter 11 bankruptcy is the typical type of bankruptcy reserved for businesses or high net worth individuals.