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Houston Bankruptcy - The Means Test

If you are interested in filing for Bankruptcy in Houston, and you’re not sure whether you can file for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, contact Houston Bankruptcy Lawyer R.J.Atkinson for a free bankruptcy evaluation & bankruptcy means test to see what your debt relief options are.

You may have heard about the changes to the bankruptcy law in 2005. And, that the changes in the bankruptcy law imposed a new "means test" on those who can file for Chapter 7 Bankruptcy. Despite what you may have heard about changes in bankruptcy law, the majority of people in the Houston, Texas area who need bankruptcy protection are still eligible. The changes in the bankruptcy law were supposed to prevent, deter, or at least make it more difficult for wealthy people to eliminate their debts by filing for Chapter 7 Bankruptcy liquidation as opposed to a Chapter 13 Bankruptcy repayment plan. As far as we have seen the means test hasn’t really affected those Houston needing to file for bankruptcy relief. It has just been one more administrative step added to the bankruptcy process.

Even though bankruptcy means test is fairly complex, it is surprisingly quite generous in what you are allowed to keep. Most people who choose to file for Chapter 7 Bankruptcy in Houston have no trouble meeting its requirements. You can take thebankruptcy means test to determine your eligibility to file for Chapter 7.

All those in Houston who are considering filing for Chapter 7 Bankruptcy are required to submit to the bankruptcy means test if their household income is above a certain threshold. If your household income is below a that threshold, then you do not have to submit to the means test to file for Chapter 7 Bankruptcy.

The Houston Bankruptcy Means Test calculator can help you to find out if you are eligible. Take the test!

Being subject to the bankruptcy means test doesn't preclude you from filing for Chapter 13 Bankruptcy. It just means that there are more forms you must complete and that you may not be eligible to file a Chapter 7 Bankruptcy. So if you do not qualify for chapter 7 because of high income, you may consider filing for Chapter 13 Bankruptcy as a debt relief option.

If you choose to file for Chapter 13 Bankruptcy, you do not need to complete the bankruptcy means test. You do however; need to complete a form very similar to it. That form will determine how much you must repay your creditors in a Chapter 13 Bankruptcy plan.

If you want to file for Chapter 7 Bankruptcy, you must at least complete the first part of the test to determine your "current monthly income" (CMI), which is based on your average income over the past six calendar months. That number then determines whether or not you need to complete the remainder of the test.

If your CMI is below the median income for Houston, Texas for a household your size, then you don’t need to complete the means test. If your CMI is higher than the median income in Houston, Texas for a household your size, you must complete the means test to compute your monthly "disposable" income (which is, income minus expenses). The result of that computation will determine whether you are eligible for Chapter 7 bankruptcy.

If you live in Houston, Katy, Sugarland, Baytown, The Woodlands, Missouri City, Texas City, Channelview, Pasadena, Spring, or anywhere else in the Houston, Texas area, and are interested in filing for Chapter 7 Bankruptcy, contact The Law Offices Of R.J.Atkinson for a free initial consultation and a free bankruptcy means test to see if you are eligible to file for Chapter 7 Bankruptcy. Imagine your life without debt!

Contact Houston Bankruptcy Lawyer R.J.Atkinson: 713-862-1700

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Houston Bankruptcy Lawyer / Attorney provides Chapter 7, 11, 12, 13, Affordable Bankruptcy Fees & Discount Legal Services in Houston.
Houston Bankruptcy Attorney provides Low Cost Bankruptcy & Discount Rates on Bankruptcy Attorney Fees serving Houston, Sugarland, Missouri City, Baytown, Pasadena, Channelview, Katy, Galveston, Pearland, Spring, Tomball, Webster, La Porte, Friendswood, Conroe, Clearlake, The Woodlands, League City, Texas City, Rosenberg, Richmond, South Houston, & Houston Texas

Filing Bankruptcy can sometimes be the fastest way to get out of debt and may be the most affordable way to get a fresh financial start. Chapter 7 Bankruptcy can quickly wipe out your debts, increase your credit score, stop wage garnishments, get rid of credit card debt, eliminate medical bills, stop payday loans, stop bill collectors, erase negative credit reporting, and reestablish new credit after bankruptcy. RJ Atkinson — Houston Bankruptcy Lawyer have payment plans to make filing Chapter 7 or Chapter 13 Bankruptcy affordable which include low cost flat fees for Chapter 7 that may be considered the cheapest bankruptcy attorney fees compared to fees other bankruptcy lawyer charge. Chapter 13 Bankruptcy can save your home from foreclosure, save your car from repossession, lower monthly payments, reduce interest rates, get rid of late fees, reduce credit card interest, payoff high credit card debt, raise your credit score, stop creditor harassment, get rid of debt, reduce debt, eliminate creditor calls at work, stop collection calls, start over financially, discharge debts and/or be debt free in 3 to 5 years. IRS tax problems, tax levies, wage garnishments, back taxes, payroll taxes, income taxes can often be handled in Chapter 13 bankruptcy. Divorce/Bankruptcy – past due child support arrears, alimony, spousal support, and divorce debt can often be handled in chapter 13 bankruptcy. The Law Offices of RJ Atkinson handles debt consolidation, loan modifications, credit card debt settlement, debt negotiation, lawsuit defense, IRS problems, credit card lawsuits, TROs temporary restraining orders to foreclosure, forbearance agreements to foreclosure, FDCPA Fair Debt Collection Practices Act lawsuits, FCRA Fair Credit Reporting Act lawsuits, credit report disputes, debt collection lawsuits, adversary complaints in bankruptcy, bankruptcies, foreclosure workouts, mortgage short sales, real estate property tax disputes, civil litigation, commercial litigation, tax lawsuits, small business bankruptcy, corporate bankruptcy, business creditor representation, and most every kind of debt related issue or financially based legal problem on a case by case basis.
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