So many Americans facing mounting debts never consider bankruptcy because they’re under the often false assumption that they make too much money. But the reality is that thousands of Dallas-Fort Worth consumers file for bankruptcy every year even with incomes over $100,000.
To find out if you qualify under Chapter 7 bankruptcy you need to calculate your household income. To determine your household income, the bankruptcy law requires you to use a special formula which averages your income over the last six months before filing. Once you determine your household income, you can compare it to the family median income for the state of Texas.
Texas Family Size Median Income
Add $6,900 for each additional individual in the household.
Is your household income less than the income for a similar sized family? If so, you’re eligible to file for Chapter 7 bankruptcy. But even if your household income is more than the median income for Texas you are allowed to deduct certain expenses from your income under the bankruptcy law, such as housing, food, transportation, taxes, insurance and many other items. Taking these deductions will usually reduce your household income, bringing it below the Texas median income.
Speak with your Dallas- Fort Worth attorney today to find out if you qualify for Chapter 7 or Chapter 13 bankruptcy.