While there isn’t a strict income limit for Chapter 7, debtors must pass a means test. This test compares their income to the median income in Texas. The means test considers various factors, including household size, expenses, and disposable income. If your income is below the median, you generally qualify for Chapter 7. If it’s above, they may need to consider Chapter 13.

Like Chapter 7, there’s no strict minimum income requirement for Chapter 13. However, you must have regular income to propose a 3 to 5-year reorganization plan to pay off debts. You must demonstrate that you can make minimal restitution required by law to your secured creditors, while making payments on those assets not put in the plan. Regular reporting is required that reflects changes in income and expenses that affect your ability to successfully complete the original plan.

Remember that bankruptcy decisions are complex, and individual circumstances vary. Seeking professional advice with Texas bankruptcy attorneys like Barrons & Barrons, LLC, ensures you make an informed choice that offers the best chance of success, regardless of the plan.