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What is the “means” test?

The “means test,” is a way to force you to pay some of your debts through Chapter 13, rather than wiping out the debts entirely under Chapter 7. The means test is a way of figuring out if a person should be able to pay back some debts. The means test looks at a debtor’s income and property. If the debtor’s income and property are too high, the person cannot file a Chapter 7 bankruptcy.  If a person whose property and income are too high files for Chapter 7 bankruptcy, the court can dismiss the bankruptcy case or convert it to Chapter 13.

Many Texas seniors qualify for Chapter 7 relief, despite the means test especially if their only source of income is from Social Security.  Benefits from the Social Security Administration are not included in the means test calculation

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