San Antonio Bankruptcy Attorney

If you are struggling with debt and cannot figure a way out, you may be considering filing for bankruptcy. Bankruptcy is a great solution for many people, but you have to first determine if you qualify and if so, under which chapter. At the Law Offices of Chance M. McGhee, we have helped thousands of individuals, families, and small businesses file for bankruptcy. We will go over your financial circumstances and explain how bankruptcy works.

Chapter 7 Bankruptcy Eligibility

Changes to the bankruptcy code in 2005,  made it a bit more difficult for debtors to qualify for Chapter 7 bankruptcy.  Very important note, if your debt is primarily business related then the “means test” is not applicable.    If your debt is primarily consumer debt, individuals are now means tested for eligibility.  We will need to review your past six (6) months of income and compare it to the median income of the county that you reside for your household size.  If you are below the median income, you do not have to continue further with the test.  If your household income is above the median income, then your will need an experienced bankruptcy attorney like Attorney Chance McGhee to guide you through the test.   Most people who are eligible to file for bankruptcy pass the “means test”.  The median income level is adjusted depending on the size of your household (the number of people in your family). In Texas, the median income levels are different per County, but generally in the range as follows:

• Single Earner - $40,389
• 2-Person Household - $54,762
• 3-Person Household - $59,276
• 4-person Household - $65,932
• For each additional person over 4 add $7,500

(Median income levels for cases filed on or after November 1, 2012) 

In order to qualify for Chapter 7 bankruptcy, you must also not have filed for a bankruptcy within the last 8 years. 

Chapter 13 Bankruptcy Eligibility

Qualifying for Chapter 13 bankruptcy is different. First you must show the court that you have sufficient income to afford the repayment plan you submit. There is also a limit to how much debt you can have. Your secured debts cannot be more the $1,010,650 and your unsecured debts cannot be more than $336,960. (These numbers are adjusted for inflation periodically).

If you are feeling the strain of mounting debt and are considering bankruptcy, contact us to schedule a free consultation with Attorney Chance McGhee. We will go over your financial situation and discuss whether or not you qualify for bankruptcy and if it is a good solution for your debt situation. Our firm is located in San Antonio, Texas, and we work with clients throughout Atascosa, Bandera, Bexar, Comal, Dimmit, Frio, Gonzales, Guadalupe, Karnes, Kendall, Kerr, Medina, Real and Wilson Counties.