Rowe Law Firm
We Return Phone Calls!
800-724-1992 Toll Free 225-250-1161 Local
Contact Our Firm

Economic means matter when determining bankruptcy eligibility

Have you ever heard of the means test? It is a form used in Louisiana and elsewhere to determine Chapter 7 bankruptcy eligibility. Before you can file for this type of debt relief, you have to take this test in order to show that you truly lack the means to meet your debt obligations.

Some common questions about the bankruptcy means test include:

Obtaining a means test

Obtaining a means test is a simple process. You can ask your legal counsel for the forms or you can generally find them online.

However, getting them from a bankruptcy attorney is probably your best bet. That way you know you have the right documents in hand in order to avoid a lot of hassle down the line.

Taking the means test

To take the means test, it is just a matter of answering questions about your income. You will then compare your income to the state's median income level. You can find all the information you need in your own personal records and state census records.

What do my results mean?

Your test can go one of two ways:

  • The first is that your income level will show that you make less than the state's median, meaning you qualify for a Chapter 7 bankruptcy.
  • The second is that your income level will be higher than the state's median, meaning a Chapter 7 filing is generally out of the question. However, you may still be able to file Chapter 13 bankruptcy.

What if my income is too high but I still lack the means to pay my debts?

This may qualify as a special circumstance. Courts look at more than just income - they look at disposable income as well. Disposable income is basically the funds you have left at the end of the month after paying all allowable expenses. Your legal counsel can review your current expenses and let you know which actually qualify.

Seek relief

Debt relief is something that many Louisiana residents desire. No one likes the feeling of being in a financial hole from which they cannot escape.

Pursing a Chapter 7 bankruptcy filing or other debt relief options can alleviate the stress you feel from not being able to meet your financial obligations. An experienced bankruptcy attorney can assist you in taking the debt relief actions that will best serve your interests.

No Comments

Leave a comment
Comment Information

  • Rowe Law Firm has always been there for me,
    without fail. Fast and efficient performance and
    reasonable prices keep my customers happy.

    - Jessie Clark, Hancock Bank - Testimonials
  • I found working with Rowe Law Firm to
    be a pleasure. I will be back.

    - Peggy Callihan, C.J. Brown Realtors - Testimonials
  • As an individual purchaser, I feel that I can
    trust Rowe Law Firm to make sure my closings
    are done right.

    - Charles Oliver, Architect - Testimonials

Broad Knowledge And
Extensive Experience

Over our decades of experience, we have successfully helped clients resolve a wide array of legal matters. Watch our videos to learn more about how we can help you.

Visit Our Video Center

Let Us Earn Your Trust.
Call For A Consultation.

At the Rowe Law Firm, we are proud that our clients can reach us when they need assistance. We always respond to phone calls promptly so you never have to struggle to reach your lawyer.

To learn more and schedule a consultation at our office in Baton Rouge, please send us an email by filling out our contact form. You may also call 225-250-1161 or 800-724-1992 toll free to speak with us about your case. We are eager to go to work for you.

Privacy Policy | Business Development Solutions by FindLaw, a Thomson Reuters business.

Back to top