Chapter 7 bankruptcy in The Woodlands TX is commonly known as liquidation bankruptcy. It’s a process that allows individuals to discharge most (or all) of their unsecured debts in an attempt to reestablish their financial footing.
James R. Jones, Attorney at Law specializes in Chapter 7 bankruptcy. Our bankruptcy lawyers represent individuals and businesses seeking to release themselves from credit card debt, unsecured loans and other financial burdens.
Do You Qualify for Chapter 7?
Filing bankruptcy in The Woodlands TX is a cumbersome process that requires legal guidance. Chapter 7 bankruptcy in particular requires very specific criteria be met in order to discharge debts. These criteria are determined via a Means Test.
A Means Test determines your financial means as compared to data from the Census Bureau representing the median income of others in your situation. It also takes into account your household size, income and dependents. In Texas, the benchmarks a person must meet to qualify for this kind of bankruptcy include:
- You make less than $37,676 per year
- Less than $54,288 per year for a two-person household
- Less than $55,534 per year for a three-person household
- For each person in excess of 4, add $7,500
It’s important to note that raw income data may appear to disqualify you from Chapter 7, however through deductions your income may actually fall below the threshold. This is why it’s critical to work with a legal expert!
Also, if you’re considering business bankruptcy as part of Chapter 7, you may not even be subject to passing the Means Test. Many provisions exist that allow businesses to liquidate through other circumstances.
How to File for Chapter 7
To determine if you’re able to file Chapter 7, we provide an in-depth 30-minute free consultation with all clients. We ask that you provide us with income data so we can put it to the Means Test. If you do qualify, we start to strategically understand and approach your debts. Our goal is to see all or as much as possible of your unsecured debts discharged. And, if you’re not eligible for Chapter 7, we’ll let you know right away and advise a different strategy.
To see if you qualify for business or consumer bankruptcy Chapter 7 filing or to consult with a knowledgeable attorney about bankruptcy options, contact James R. Jones, Attorney at Law today by calling (713) 992-2039.