What is the means test for Chapter 7?

The means test compares your household income to the Texas median. If your income is below the median for your household size, you automatically qualify. If above, a more detailed calculation determines eligibility.

Chapter 7 Bankruptcy in San Antonio

Q: How long does Chapter 7 take in San Antonio?

From filing to discharge, Chapter 7 typically takes 3-4 months. The 341 meeting of creditors occurs about 30 days after filing, and the discharge is usually entered about 60 days after that.

Q: What property can I keep in Chapter 7 in Texas?

Texas exemptions protect: homestead equity up to Unlimited, vehicle up to Fully exempt, and personal property up to $60,000 (married) / $30,000 (single). Retirement accounts are generally fully exempt.

Chapter 7 is the fastest path to debt relief. Most unsecured debts are eliminated in 3-4 months. Here is what San Antonio residents need to know.

What Is Chapter 7?

Chapter 7, sometimes called "liquidation bankruptcy" or a "fresh start," eliminates most unsecured debts. A court-appointed trustee reviews your assets. If you have non-exempt property, the trustee may sell it to pay creditors -- but most Chapter 7 cases are "no-asset" cases where the filer keeps everything.

In San Antonio, most Chapter 7 filers keep all their property because it falls within Texas exemption limits.

What Debts Does Chapter 7 Eliminate?

Dischargeable (eliminated)

Credit card debt
Medical bills
Personal loans and payday loans
Old utility bills
Deficiency balances from repossessions
Some older tax debts
Civil judgments (in most cases)

Not dischargeable

Student loans (except in rare hardship cases)
Recent income taxes (generally last 3 years)
Child support and alimony
Court-ordered restitution and fines
Debts from fraud or willful injury
Certain debts under 11 U.S.C. section 523(a)

The Means Test

To file Chapter 7, you must pass the means test. This compares your household income to the state median:

Below median income: You automatically qualify for Chapter 7
Above median income: A detailed calculation of your disposable income determines eligibility

For a single filer in Texas, the current median is approximately $56,000/year. These figures increase with household size.

Texas Exemptions in Chapter 7

Texas has some of the most generous exemptions in the country. The homestead exemption is unlimited in value (up to 10 acres urban), and vehicles needed for work are fully exempt.

Property	Texas Exemption
Homestead	Unlimited (up to 10 acres urban / 100 acres rural)
Vehicle	Fully exempt if needed for work
Personal property	$60,000 (married) / $30,000 (single)
Retirement (IRA/401k)	Fully exempt
Public benefits	Fully exempt

Full exemption details →

Chapter 7 Timeline

Weeks 1-2: Preparation -- Gather documents (tax returns, pay stubs, bank statements). Complete credit counseling course ($15-25).
Day 1: Filing -- Petition filed with the court. Automatic stay takes effect immediately.
Day 30-45: 341 Meeting -- Brief meeting of creditors. Most meetings last 5-10 minutes.
Day 30-60: Debtor education -- Complete the second required financial education course ($10-25).
Day 90-120: Discharge -- The court enters your discharge order, eliminating eligible debts.

Frequently Asked Questions

What debts does Chapter 7 eliminate?

Chapter 7 discharges most unsecured debts including credit cards, medical bills, personal loans, and old utility bills. It does not discharge student loans, recent taxes, child support, or debts from fraud. See section 523(a) for the full list.

What is the means test?

The means test compares your household income to the Texas median. If below, you qualify automatically. If above, a detailed calculation determines eligibility.

How long does Chapter 7 take in San Antonio?

From filing to discharge, typically 3-4 months. The 341 meeting occurs about 30 days after filing, and the discharge comes about 60 days after that.

What property can I keep in Chapter 7?

Texas exemptions protect homestead equity up to Unlimited, vehicle up to Fully exempt, and personal property up to $60,000 (married) / $30,000 (single). Full exemption details.