Filing for protection under the bankruptcy code can provide debtors with a great deal of relief and a fresh financial start. A Chapter 7 bankruptcy is available for debtors who pass the Means Test. Most people do actually pass the Means Texas, even in Collin County Texas. However, the Means Test is a two part test. Most high income earners fail the first part of the Means Test in Collin County and other North Texas Counties. The first part of the test compares what most families of the debtor’s size make in Texas. Most people make less than families do in North Texas. However, there is a second part of the test. The second part of the test compares your housing, utilities, and transportation guidelines to what the IRS says is normal for a family of your size. Most people in Collin, Denton, Dallas, and Grayson Counties pass the second part of the Means Test.
If not, then Chapter 13 is available for those highest of income earners. It is also helpful for people because most of the time credit card debt is discharged just as it would be in a Chapter 7 bankruptcy. It is also helpful if you have IRS debt, are trying to avoid foreclosure or repossession.