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What Qualifies You for Bankruptcy in Texas?

Home » Texas Criminal Defense and Bankruptcy Resources » What Qualifies You for Bankruptcy in Texas?

What Qualifies You for Bankruptcy in Texas?For those in a financial bind, bankruptcy can be a clear solution that offers new beginnings. However, not everyone can qualify, and different types of bankruptcy have different requirements. If you’re having difficulty understanding whether you satisfy the requirements to file for bankruptcy in Texas, a knowledgeable lawyer at Pelley Law Office can provide you with crucial guidance through this process – call us at 972-608-0335 for a free consultation. 

 

Do You Qualify for Chapter 7 Bankruptcy?

A man in a business suit turning out his pant pockets showing bankruptcy.

To qualify for filing Chapter 7 bankruptcy in Texas, you are required to pass the means test, which involves comparing the income you have to the state’s average. Chapter 7 bankruptcy was set up to get rid of most unsecured debts, such as personal loans, medical bills, and credit card debt.

Under the following conditions, you could qualify for Chapter 7 bankruptcy:

  • You have a limited disposable income after paying for essential expenses.
  • The income you have is below the Texas median income when considering your household size.
  • Even if your income is over the limit, you could still qualify by taking into account deductions like child support and mortgage payments.

 

What About Chapter 13 Bankruptcy?

What About Chapter 13 Bankruptcy?If you do not believe that you meet the requirements for Chapter 7 bankruptcy, Chapter 13 bankruptcy could be an option for you. This bankruptcy type takes your debts and reorganizes them into a payment plan that can be made over three to five years. Individuals who have a steady income, secured debts under $1,395,875, and unsecured debts under $465,275 may qualify.

As a general rule, Chapter 13 bankruptcy filing could be a better option for individuals who need to catch up on any missed payments while preserving their assets or preventing foreclosure from happening.

 

What Are Other Factors That Affect Eligibility?

Other factors that could impact your eligibility to file for bankruptcy include your bankruptcy history, your credit counseling course attendance, and whether there are any signs of fraud or misconduct. Individuals in Texas are required to wait a certain amount of time between filings for bankruptcy. An approved credit counseling course must be completed within 180 days before filing takes place.

 

Do You Need a Bankruptcy Attorney?

Although you are legally allowed to file for bankruptcy on your own, it is complicated to navigate bankruptcy legislation, and mistakes can significantly delay your case or even result in a denial. By hiring a qualified bankruptcy attorney, especially from Pelley Law Office, you can make sure that everything is done right the first time and that you receive the protections you are entitled to.

 

Speak With a Texas Bankruptcy Attorney Today

If you are swimming in debt and need to understand more about your options for filing for bankruptcy in Texas, a compassionate and knowledgeable attorney from Pelley Law Office is eager to assist you. During a free consultation, we can go over the details of your financial situation with you and help you understand what your legal options are.

Take the first step towards financial freedom today by contacting us online or calling 972-608-0335.

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