Legal Guidance On The Bankruptcy Means Test In Pearland, Texas
Last updated on November 4, 2025
Filing for bankruptcy can be a practical step in a financial struggle. However, not everyone automatically qualifies for Chapter 7 bankruptcy. To determine eligibility, the bankruptcy means test is used. Because the process can be complex and requires accurate financial information, working with an experienced bankruptcy attorney is essential.
At Byman & Associates PLLC, we serve individuals and families in Pearland, Texas, who are facing serious financial challenges. Our firm offers comprehensive bankruptcy services, and we take the time to help our clients understand every part of the bankruptcy process.
What Is The Bankruptcy Means Test, And Why Does It Matter?
The bankruptcy means test helps ensure that only those who truly cannot afford to repay their debts qualify for Chapter 7 bankruptcy. It compares your household income to the median income for similar households in Texas.
If your income falls below this threshold, you may be eligible to file for Chapter 7. If it exceeds the median, further calculations are made to determine whether your disposable income can cover your debts through a Chapter 13 repayment plan instead.
This test protects the integrity of the bankruptcy system, making sure it helps those who genuinely need financial relief.
Who Qualifies Under The Means Test In Texas?
Eligibility depends on factors such as:
- Current monthly income: This includes most sources of income, except specific benefits like Social Security.
- Household expenses: These are based on IRS standards and may include rent, utilities, transportation and food.
- Special deductions: Certain expenses like child care, medical costs or taxes can lower your disposable income.
Our attorneys help ensure that your financial information accurately reflects your situation under Texas law.
How Is The Means Test Conducted?
The process involves two main steps:
- First, your average income over the last six months is compared to the Texas median income for a household of your size. If your income is below the median, you qualify for Chapter 7 bankruptcy.
- If it is higher, the second step calculates your disposable income after deducting approved expenses. This determines whether you have enough left over to repay your debts under a Chapter 13 plan.
At Byman & Associates PLLC, our bankruptcy attorneys take the time to walk clients through each stage of this process, helping ensure no details are missed and that all information is correctly filed.
What Happens If You Pass Or Fail The Means Test?
If you pass the means test, you may qualify for Chapter 7 bankruptcy, which allows for the discharge of unsecured debts such as credit cards or medical bills.
If you fail the test, it does not mean that bankruptcy is off the table. You may still file under Chapter 13 bankruptcy, where you can repay your debts over three to five years.
Are There Any Exemptions Or Special Circumstances?
Yes. Certain individuals may qualify for exemptions that affect how the means test is applied. For example, disabled veterans or active-duty military members have special considerations.
Other exceptions may apply to income received from specific sources or changes in employment status. These situations can alter the test’s outcome, making the guidance of a knowledgeable bankruptcy attorney important.
Find The Right Bankruptcy Solution For You In Pearland, Texas
If you are unsure whether you qualify for Chapter 7 bankruptcy or need help understanding the bankruptcy means test in Pearland, Texas, Byman & Associates PLLC is here to help. Call us at 281-884-9768 or email us to get started with an initial free review.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.