The Means Test
The means test is the evaluation used to determine whether or not someone qualifies for Chapter 7 elimination bankruptcy. The means test uses your amounts of owed debt in comparison to your monthly income and total value of assets. If your income and asset values are equal to or below the criteria for your household size, you may qualify for Chapter 7.
The recent changes to the means test vary, but range from $2000 to $4000 increase annually. The table below depicts the changes from the previous median income levels to those used from November 1, 2020 onward.
Household size 1: $60,360.00 to $62,628.00
Household size 2: $79,271.00 to $82,418.04
Household size 3: $88,235.00 to $91,605.00
Household size 4: $ 101,315.00 to $105, 228.00
Household size 5: $110,315.00 to $114,228.00
Household size 6: $119,315.00 to $123,231.96
These changes could impact your path to debt relief. If you have previously been advised you could not file a Chapter 7, or think you make too much to qualify, contact a Houston bankruptcy lawyer to review your options.