Many Louisiana residents may struggle with their overwhelming debt for years before deciding to take significant measures to address it. Of course, even if they decide to move forward with Chapter 7 bankruptcy, they must still meet the requirements necessary to receive debt relief through this option. As expected, a major eligibility factor relates to income.
When hoping to qualify for Chapter 7, potential applicants must first pass a means test. This test involves officials looking at a person's income and comparing it to the median, or middle-level, income of the state. If the individual's income level falls below the median income, it is likely that he or she will qualify for Chapter 7. Documentation of passing this test is important in a bankruptcy petition.