Step 4Your planIncome estimate
Household income compared with the Texas median
Bankruptcy law compares your household's recent income with the Texas median for your household size. This is the first screen of the means test — an estimate only. A lawyer decides.
11 U.S.C. § 1322(d)Chapter 13 plans last three to five years; which one depends on income compared with the state median.
Quoted text“the plan may not provide for payments over a period that is longer than 3 years”Verified against the official source
11 U.S.C. § 707(b)(1)For people with mostly consumer debts, Chapter 7 can be dismissed as "abuse" if income is high enough to repay. The "means test" is how that is measured.
Quoted text“whose debts are primarily consumer debts”Verified against the official source
11 U.S.C. § 707(b)(7)(A)If household income (the last six months, times two) is at or below the Texas median for your household size, the main means-test challenge is not available. A lawyer does the real calculation.
Quoted text“when multiplied by 12, is equal to or less than”Verified against the official source