Can Anyone File Chapter 7 Bankruptcy in Texas?

Filing for bankruptcy can give you a fresh start, but with consequences.

Filing for Chapter 7 protection is a popular way to declare bankruptcy among individuals. However, before you do so in Texas, you should be aware of the criteria that you must meet.

Credit Counseling

Anyone thinking about declaring Chapter 7 in Texas must attend credit counseling for six months before they file for bankruptcy. The cost for these counseling sessions must be paid out of the filer's own pocket.

Previous Bankruptcies

It is harder to file for Chapter 7 in Texas if it's not your first time declaring bankruptcy. In order to be able to file, you can't have previously declared a Chapter 7 bankruptcy for eight years, or a Chapter 13 bankruptcy for six years. You also can't have had a previous bankruptcy petition dismissed within the past six months because you failed to make the necessary appearances in bankruptcy court.

The Means Test

You can only file for Chapter 7 in Texas if your income is less than the median income for a family of four in that state. Otherwise, you will need to look into filing a different type of bankruptcy, such as a Chapter 13.

References

• When You Have to File for Bankruptcy; Matt Pelc; 2008