If you're struggling with debt and considering Chapter 7 bankruptcy in Louisiana, the means test is your first major hurdle. This test determines whether you’re eligible to discharge most of your unsecured debts—such as credit cards and medical bills—under Chapter 7. At De Leo Law Firm, LLC, we help Mandeville residents understand and navigate the means test with confidence and clarity.

What Is the Means Test?

The Chapter 7 means test is a financial assessment designed to limit Chapter 7 bankruptcy relief to those who truly cannot repay their debts. It compares your current monthly income to the median income in Louisiana for a household of your size. If your income is below the median, you pass the means test automatically. If it’s above, further calculations are required to determine whether you still qualify.

Step 1: Comparing Income to Louisiana’s Median

As of 2025, the Louisiana median incomes are approximately:

• $54,000 for a single earner
• $72,000 for a two-person household
• $83,000 for a three-person household
• $95,000 for a four-person household

These numbers adjust periodically. If your six-month average income is less than the median for your household size, you generally qualify to file under Chapter 7.

Step 2: Calculating Disposable Income

If your income exceeds the median, the second part of the means test evaluates your disposable income. This involves:

• Subtracting allowed living expenses (based on IRS standards)
• Deducting secured debt payments like mortgage or car loans
• Accounting for child support or medical costs

If your disposable income is too high, the court may require you to file for Chapter 13 bankruptcy instead, where you repay some debts over time.

Why the Means Test Matters

Passing the means test means you may be eligible for a fresh start through Chapter 7. But if you don’t qualify, it doesn’t mean you're out of options. Chapter 13 may still allow you to reduce or restructure your debt.

Get Help From De Leo Law Firm, LLC

The means test can be complex, and a single mistake can affect your eligibility. At De Leo Law Firm, LLC, we assist Mandeville residents in determining their qualifications, calculating income accurately, and choosing the right bankruptcy path. Let us help you pursue debt relief with clarity and confidence.