Before you even know what chapter of bankruptcy you are going to qualify for you need to complete a Means Test. This is done on a Form22A-1. It basically details your current monthly income and expenses. It will determine if you meet the criteria for a Chapter 7 bankruptcy.
Chapter 7 Considerations
In a Chapter 7 bankruptcy, much of your debt to be discharged. Whereas with a Chapter 13 you will be following a structured and court order payment plan.
Presumption of abuse is a pretty scary term. What it actually means is if after all of the calculations of income and expenses are completed, and you have more than $167. left over then a substance of abuse ruling may be applicable. If this is the case then the trustee has to notify your creditors that this is exists.
This could mean that the bankruptcy that was being filed for under Chapter 7 is more applicable to a chapter 13. Or dismiss the bankruptcy filing. The creditor can also file for this. If there are special circumstances where the debtor can justify as to why the bankruptcy filing should be upheld then it may still proceed under the Chapter 7.
Bankruptcy is not as cut and dried as many people think. This is why it is so beneficial to have a Houston bankruptcy lawyer that is acting on your behalf. There are many forms and procedures that have to be adhered to. If they are not correctly they can have an adverse effect on the outcome of your bankruptcy.