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Living with overwhelming debt can quickly take an emotional and financial toll on your life and well-being, often leaving you feeling stuck and uncertain about the future. Chapter 7 bankruptcy can provide a path to reset your finances by eliminating most or all of your unsecured debts, such as credit card balances and medical bills. However, qualifying for Chapter 7 is not always easy for Houston Families as it requires passing the means test, which evaluates your income and financial situation to determine eligibility for this powerful relief option. At Jack N. Fuerst, Attorney at Law, we understand how intimidating the bankruptcy process can seem. With over 40 years of experience helping people just like you, we’re here to guide you through the process, explain what to expect, and work toward a solution tailored to your needs.
The means test is a key step in determining whether you qualify for Chapter 7 bankruptcy in Texas or anywhere else. Its purpose is to screen out individuals who might be better suited to a Chapter 13 repayment plan and to prevent folks from taking advantage of Chapter 7 protections. The test reviews your household income, reasonable living expenses, and disposable income to decide if Chapter 7 is the right option.
Step 1: Compare Your Income to the Texas Median
Start by comparing your household income to the state median for your family size. If your income is below the median, you automatically qualify for Chapter 7 bankruptcy. In Texas, as of 2026, these median income levels are:
Falling below the median makes things straightforward. However, if your income exceeds these figures, there’s still hope. The second step of the means test can still help you qualify.
Step 2: Calculate Your Disposable Income
If your income surpasses the Texas median, you’ll need to calculate your disposable income. This involves subtracting certain allowable expenses, such as housing, transportation, and healthcare, from your monthly income. The lower your disposable income, the better your chances of qualifying. If your disposable income over a five-year period is below a particular threshold (typically between $7,475 and $12,475 in Houston), you may still qualify for Chapter 7 bankruptcy.
One of the most common fears about filing for Chapter 7 is losing your home, car, or other valuables, as the Chapter 7 process requires liquidating many assets to pay creditors what you can. Thankfully for Houston residents, Texas is one of the states with the most generous bankruptcy exemptions in the country, allowing you to keep the core wealth you have been able to build up and most necessities. Texas Bankruptcy Exemptions Include The Following:
Navigating bankruptcy is highly technical, and even small errors can have costly consequences. An experienced Houston bankruptcy attorney like Jack N. Fuerst can be invaluable in helping you understand your options and protect your rights. Here’s how we can assist:
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