Debt Relief

Property & Assets

Bankruptcy FAQ

What You Need To Know About The Means Test

At the McBride Law Firm, our lawyers work closely with clients to evaluate their finances, debts and properties, and determine if filing for Chapter 7 will offer them the best path to debt relief. If clients qualify for Chapter 7, we will help them navigate the process in the most efficient manner possible so they can discharge their debts and move forward with a clean slate.

Located in Alexandria, our firm has been helping local residents discharge their debts for more than 30 years. Attorney Tom McBride was born and raised in central Louisiana. He understands the impact debt has on the lives of his clients and works hard to find the best debt relief path for them.

Qualifying For Chapter 7 Bankruptcy

In order to file for Chapter 7 bankruptcy, individuals must qualify under the “means test.” The means test is part of a federal law. During the test, an individuals’ income and expenses are analyzed. If it is determined that you earn enough to repay a portion of your debts under a repayment plan, you will be required to file through Chapter 13.

The means test has two parts. The first step is to evaluate your average monthly income over the past six months. If your average income is equal to, or lower than, the median income of other similarly sized families in Louisiana, you will qualify for Chapter 7.

The second part of the test is used when an individual’s average income is higher than the state median. During this stage, your monthly expenses will be deducted from your average income. If this lowers your average income enough, you will qualify for Chapter 7.

If, after completing the means test, your income is too high, Chapter 13 will be your only bankruptcy option.

Contact The McBride Law Firm For A Free Consultation

When you are ready to stop creditor harassment and eliminate your debts, call 318-625-0471 or contact us online. We offer free same-day or next-day appointments so you don’t have to wait.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.