Legal Question in Bankruptcy in Texas

i need to file bankruptcy but was told i make to much money to file a chapter7 i would have to file a chapter 13 how much are you allowed to earn and qualify for a chapter 7

Asked on 4/16/10, 4:28 pm

1 Answer from Attorneys

Saharie L. Reed Reed Legal Group
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The answer to this question depends on what state you are in and how many people are in your family. The department of justice under the US trustee program has texas listed as follows:

Census Bureau Median Family Income By Family Size

(Cases Filed On and After March 15, 2010)

FAMILY SIZE

STATE 1 EARNER 2 PEOPLE 3 PEOPLE 4 PEOPLE *

Texas $38,801 $55,660 $59,011 $66,145

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which opens a new era in the history of bankruptcy law and practice, was passed by Congress and signed into law by President Bush on April 20, 2005. The United States Trustee Program is the component of the Department of Justice that protects the integrity of the nation’s bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The Act gives the U.S. Trustee Program new responsibilities in a number of areas, including:

• implementing the new “means test” to determine whether a debtor is eligible for chapter 7 (liquidation) or must file under chapter 13 (wage-earner repayment plan).

If you make more than the above income the presumption of abuse arises, but you are allowed to rebut the presumption of abuse by presenting evidence to the contrary. If you can show through income and expenses you may be able to qualify for a chapter 7. This requires more work and evidence on behalf of you or your attorney, if you have one.

visit: http://www.justice.gov/ust/eo/bapcpa/20100315/bci_data/median_income_table.htm

or

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics.html

for more information.

877.778.5175

Read more
4/21/10, 7:56 pm

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