Updates To Means Test

Household income is one of the key factors used to evaluate whether you qualify for chapter 7 or 13. The means test allows debtors to earn up to a particular amount of income, which is based on the previous six months’ earnings, depending on household size. The income thresholds for filing a chapter 7 bankruptcy have been changed to account for the rise in the cost of living.

Effective May 15, 2022:

Household of 1: $65,895

Household of 2: $87,355

Household of 3: $97,092

Household of 4: $111,535

Other factors to examine before picking which bankruptcy chapter to petition include whether or not one owns any property and determining which chapter is appropriate based on the type of debt due. Furthermore, because the word “household size” may change from how you prepare your taxes, it is critical to speak with an attorney about your living circumstances before filing a bankruptcy case to ensure that you are utilizing the proper threshold to determine if you qualify for chapter 7.

For more information about qualifying for bankruptcy, contact a Houston bankruptcy lawyer today to review your eligibility under the new standards.