Filing for bankruptcy is a serious step. Before you start gathering documents or filling out forms, you need to know if you qualify. Eligibility rules can be different depending on whether you file for Chapter 7 or Chapter 13, and understanding those differences could help you choose the right path. An experienced attorney could review your financial situation, explain your options, and guide you through each step of the process.
Eligibility for bankruptcy in Dallas depends on factors such as income, debt levels, and the type of relief you are seeking. While the law sets these rules, they are not always easy to interpret on your own. Speaking with a bankruptcy attorney early on could save time and reduce the risk of mistakes.
Chapter 7 Eligibility
Chapter 7 is often referred to as liquidation bankruptcy, but in Texas, exemptions allow many filers to keep most or all of their property. To qualify for this type of bankruptcy in Dallas, you must pass the means test, which compares your income to the state median for your household size. If your income is below the median, you may be eligible. If it is above, further calculations determine whether you have enough disposable income to repay creditors.
Certain debts or prior filings could also impact eligibility. If you filed Chapter 7 within the last eight years, you cannot file again until the waiting period ends.
Chapter 13 Eligibility
Chapter 13, or reorganization bankruptcy, allows you to repay some or all of your debts through a court-approved plan. To be eligible for this asset protection in Dallas, your unsecured debts must be under $419,275, and your secured debts must be under $1,257,850—these amounts are adjusted periodically. You also need a steady income to make payments toward your plan.
If you filed Chapter 13 in the last two years or Chapter 7 in the last four years, you may have to wait before filing again. Chapter 13 could be a good option for those who do not pass the Chapter 7 means test or who want to protect assets from liquidation.
What Are Other Factors That May Affect Eligibility?
Entitlement to file for bankruptcy in Dallas is not just about income or debt limits. The court may dismiss a case if you:
- Commit fraud
- Fail to provide complete and accurate information
- Have a recent bankruptcy case dismissed for certain reasons
- Fail to complete the required credit counseling course before filing
Even small mistakes in your paperwork could delay your case or lead to dismissal. That is why it could help to have legal guidance from the start.
Talk to a Dallas Attorney About Eligibility Requirements for Bankruptcy
If you are wondering whether you qualify for Chapter 7 or Chapter 13, a lawyer could help you review your finances, explain the requirements, and outline your next steps. Contact Allmand Law Firm, PLLC to learn more about your eligibility for bankruptcy in Dallas and take the first step toward relief.
Filing for bankruptcy involves important legal decisions and strict deadlines. Acting quickly and consulting with our bankruptcy attorney could help you protect your assets, stop collection efforts, and move forward with a clear plan. The sooner you begin, the sooner you can work toward a financial fresh start under the protections of the bankruptcy code.
