The Means Test and Bankruptcy in Texas

Most people filing for bankruptcy have been faced with an unexpected crisis or unforeseeable event that has left them unable to contend with mounting bills and expenses. You may have lost a job, suffered an injury or gone through an expensive divorce. Federal bankruptcy law often allows individuals and families who are unable to recover from debt the option of filing for bankruptcy. If you are faced with overwhelming debt, it is important to know your rights and options under bankruptcy law.

Take action now to seek the fresh start you deserve by calling Austin (512) 476-2000San Antonio (210) 560-0000, or emailing for a free consultation with an experienced bankruptcy attorney.

Working With an Experienced Bankruptcy Law Attorney

It is important to consult with an experienced bankruptcy attorney before attempting to file for bankruptcy. At the law office of Susan G. Taylor, I will inform you of your rights and the long-term consequences of bankruptcy. I will also introduce you to potential alternative forms of debt relief in the event that bankruptcy is not the right option for you.

The Means Test

Under the new bankruptcy law, the court will review your ability to file for bankruptcy based on what is known as "The Means Test." In the past, your ability to file was based on what you had on hand the day of filing. Now the court will consider:

  • How much money you earn,

  • How much money you have at the end of the month ("disposable income"), and

  • How many other assets you possess, such as real estate

If you make more than a certain amount ("median income"), you might not qualify for Chapter 7 bankruptcy and the court may require you to file for Chapter 13 for bankruptcy relief. However, if you pass a secondary "means test", you may still qualify for Chapter 7. The means test will measure your debt against national standards on such things as cars, housing and clothing. You may be steered toward a Chapter 13 bankruptcy, an extended repayment plan. But even in Chapter 13, you may be able to substantially reduce or prevent repayment of some or all of your debt.

We are an experienced firm that knows the ins and outs of bankruptcy law. We will review your assets, debts and income to determine whether you qualify for and should pursue a Chapter 7 bankruptcy. Bankruptcy law is highly nuanced and requires an experienced eye and strategic advocacy to protect your rights. Even if you do not think that you will qualify, we might be able to consider additional factors, including whether you should wait to file.

To discuss your bankruptcy options and debt relief solutions, please contact Law Offices of Susan G. Taylor, an experienced bankruptcy firm serving individuals, families and businesses throughout Central Texas.

Free initial consultations. After hours and weekend appointments available. Located conveniently in the historic district, west of the Capitol, and near the San Antonio Airport, on Loop 410. Ample, free parking.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.