Chapter 7 Eligibility in Houston

The means test uses Texas median income: $60,840 for a single person. If below this, you qualify automatically. If above, you may still qualify after subtracting allowed expenses.

The Means Test in Texas

The means test compares your household income to the Texas median. If your income is below the median, you automatically qualify for Chapter 7. The current Texas median income for a single person is $60,840.

Below median: You qualify for Chapter 7 automatically
Above median: You must complete the full means test (Form 122A-2), which subtracts allowed expenses from your income. If disposable income is low enough, you still qualify.
Texas has no state income tax, which affects the means test calculation - Texas residents keep more take-home pay but that higher take-home pay is what the means test measures

Take the means test at our Houston means test page or visit bankruptcymeanstest.org for a detailed explanation.

Other Eligibility Requirements

You Must

Complete credit counseling within 180 days before filing
Not have received a Chapter 7 discharge within the past 8 years
Not have received a Chapter 13 discharge within the past 6 years
Not have had a case dismissed for abuse within 180 days
File tax returns for the past 4 years

Disqualifying Factors

Income above the means test threshold with no allowable deductions
Prior discharge within the time bar period
Prior case dismissed within 180 days for willful failure to comply
Attempting to defraud creditors (hiding assets, recent luxury spending)
Failure to complete required credit counseling

Texas Exemptions That Protect Your Property

Filing Chapter 7 does not mean you lose everything. Texas exemptions protect:

Homestead: unlimited (up to 10 acres urban, 100 acres rural)
Vehicle: one vehicle per licensed household member if needed for work
Retirement accounts: IRAs, 401(k)s, and pensions are fully exempt under federal and Texas law
Personal property: Clothing, household furnishings, and tools of the trade up to Texas limits

See our full Houston exemptions guide for complete details.

Frequently Asked Questions

What is the income limit for Chapter 7 in Houston?

The means test uses Texas median income: $60,840 for a single person. If below this, you qualify automatically. If above, you may still qualify after subtracting allowed expenses.

How often can I file Chapter 7 in Texas?

You must wait 8 years from a prior Chapter 7 discharge, or 6 years from a prior Chapter 13 discharge. Check your eligibility with the 1328(f) screener.

Do I have to pass the means test?

Yes, unless you are a disabled veteran or your debts are primarily business debts. All consumer debtors must complete the means test form even if they qualify automatically.

Can I file Chapter 7 if I own a home?

Yes. Texas's unlimited (up to 10 acres urban, 100 acres rural) homestead exemption protects your home equity. If your equity exceeds the exemption, Chapter 13 may be a better option.

What happens to my car in Chapter 7 in Texas?

Texas exempts one vehicle per licensed household member if needed for work. If your equity is within this limit, you keep your vehicle. If you owe more than the car is worth, you can reaffirm or surrender.

How long does Chapter 7 take?

Most Chapter 7 cases in the Southern District of Texas take 3-4 months from filing to discharge. The 341 meeting occurs about 30-40 days after filing.