Virginia Bankruptcy Means Test in Richmond

Chapter 7 & Chapter 13 Eligibility Analysis for Richmond, VA Filers

The Virginia bankruptcy means test is the federal calculation that determines whether you qualify for Chapter 7 liquidation or must restructure debt through Chapter 13. At Flores Law PLLC, our attorneys apply professional backgrounds in banking, investment, and court administration to walk through that calculation with you before you file, so there are no surprises. We provide that analysis in both English and Spanish.

Call us at (804) 315-0810 to schedule a free initial phone consultation and find out where you stand on the means test before making any decisions.

What the Means Test Measures

Congress added the means test to federal bankruptcy law to screen out filers who have enough income to repay a meaningful portion of their debts. The test compares your current monthly income (CMI) against the published median family income for a Virginia household of your size. Pass that comparison, and Chapter 7 remains available. Fail it, and additional calculations determine whether you can still file Chapter 7 or must pursue Chapter 13.

CMI isn’t your most recent paycheck. It’s the average of your gross income over the six calendar months before your filing date. That lookback period matters: a recent job loss or pay cut might not fully lower your CMI yet, while income you no longer receive still counts. Timing a filing correctly can make a real difference in the result.

The Two-Step Calculation

The means test moves in two stages, and where you land at each stage shapes your options.

Stage One: Median Income Comparison

The U.S. Trustee Program publishes median family income figures by state and household size on a rolling basis. If your CMI is at or below Virginia’s current median for your household size, you clear Stage One and aren’t required to complete further calculations to qualify for Chapter 7.

Stage Two: Disposable Income & Presumption of Abuse

Filers whose income exceeds the state median must continue to Stage Two. Here, IRS-allowable living expense standards are deducted from CMI to arrive at a disposable income figure. If that figure crosses a statutory threshold, a presumption of abuse arises, meaning a court may find that Chapter 7 relief may be inappropriate for your situation.

A presumption of abuse isn’t automatically the end of a Chapter 7 path. It can sometimes be rebutted by documenting special circumstances that the standard expense deductions don’t capture. Filers who don’t pass the written calculation may also still qualify under a totality-of-circumstances review, where a court examines the full picture of your finances rather than the formula alone.

How the Means Test Shapes a Chapter 13 Plan

For filers whose best option is Chapter 13, the means test outcome still matters. It determines whether your repayment plan runs three years or five, and the disposable income figure sets the floor for how much must be paid to unsecured creditors over the life of the plan. Getting those numbers right at the start can help avoid problems during plan confirmation.

Why Richmond Filers Work with Flores Law PLLC

Means test forms are filed with the United States Bankruptcy Court for the Eastern District of Virginia, where our firm is admitted to practice. Before a single form is submitted, we review your income, expenses, and asset picture together.

Financial Industry Experience Applied to Your Filing

Attorney Joseph R. Patrell brings hands-on experience in investment, banking, and small business ownership to that review. That background can help us spot income characterization issues and expense deductions that a purely document-processing approach might miss.

Attorney Stephen L. Flores founded Flores Law PLLC after graduating from the University of Richmond School of Law and previously worked as a deputy clerk in the D.C. Court system. That court administration background translates directly into understanding how filings are reviewed and what documentation can satisfy a trustee’s questions. Both attorneys are members of the Richmond Bar Association’s Bankruptcy Section and are admitted to the Virginia State Bar.

Direct Attorney Access & Bilingual Service

We don’t route client questions through assistants or scheduling queues. Phone calls and emails are addressed personally by an attorney. For Spanish-speaking clients in the Richmond, Virginia area, we provide complete legal services in Spanish, so every step of the process can be explained in the language you’re most comfortable with.

Start with a Free Phone Consultation

The means test involves real deadlines and filing decisions that affect what relief is available to you. We offer free initial phone consultations to review your income, household situation, and debt obligations and give you a clear read on which path may make sense. There’s no cost to that first conversation and no obligation to proceed.

Contact Flores Law PLLC today at (804) 315-0810 to schedule your free consultation and get a straight answer on your Chapter 7 eligibility under the Virginia means test.