There is a lot that goes in to determining one's eligibility to file for Chapter 7 Bankruptcy. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) made several alterations to American bankruptcy laws. One main provision was to make it harder for people to file for Chapter 7 bankruptcy. Chapter 7 has always been a very attractive option to debtors due to the fact that most debts can be completely forgiven.

People of all income levels used to be able to file for Chapter 7 bankruptcy, but it is not that way anymore. The debtor's income is compared to the median income in their state of residence; if they make more than the median amount, they must take a "means test." The means test will take various kinds of deductions into account as a way to determine eligibility.

If the bankruptcy means test determines that someone makes too much money to qualify for Chapter 7, Chapter 13 bankruptcy is another option for the individual to consider. It will not wipe out debts entirely, but it will consolidate those debts to be repaid in manageable monthly payments. If a person does find out he is eligible to file for Chapter 7 bankruptcy, it is highly recommended that he contact an experienced Texas bankruptcy attorney to be sure this will be the best option.

If you are thinking about filing for Chapter 7 bankruptcy, contact Houston bankruptcy attorney J. Thomas Black for a free consultation at 888-707-1233.