Chapter 7 vs. Chapter 13: Which “Means Test” Median Applies to Ocean Springs in 2026?
Ocean Springs, United States – March 20, 2026 / Busching Bankruptcy Group /
When you are struggling with debt, finding the right path forward can feel overwhelming. Many families in our community look for a bankruptcy law firm in Ocean Springs, MS, to understand their legal rights. At Busching Bankruptcy Group, we believe that education is the first step toward financial freedom. One of the most important parts of filing for bankruptcy in 2026 is passing the “means test.” This test compares your household income to the median income in Mississippi to determine which type of bankruptcy fits your needs.
Understanding the Chapter 7 Means Test
The goal of Chapter 7 is to wipe out most of your unsecured debts, such as credit cards, medical bills, and signature loans. To qualify, you must pass the means test. This test is designed to see if you have enough extra money to pay back some of your debt. If your income is below the state median for a household of your size in 2026, you usually qualify for Chapter 7 automatically.
If you qualify, you can often protect your most important assets. In Mississippi, homeowners can protect up to $75,000 in equity in their primary residence. You can also keep household items, clothing, and even your retirement accounts, like a 401(k). Busching Bankruptcy Group helps you use these exemptions so you can start fresh without losing everything you own.
When Chapter 13 is the Better Choice
If your income is higher than the Mississippi median, or if you have valuable property you want to save, Chapter 13 might be the right answer. This is a reorganization plan where you pay back a portion of your debt over three to five years. It is especially helpful for people facing foreclosure or car repossession.
A Chapter 13 plan forces your creditors to stop all collection efforts immediately. You can catch up on mortgage payments and even modify the terms of certain loans. Most people do not have to pay back their debt in full; the amount you pay is based on your specific budget. This allows you to keep your home and car while getting your finances back under control.
The Importance of Updated 2026 Figures
The “median income” isn’t a fixed number. It changes based on the size of your family and updated economic data provided by the government. In 2026, these figures are specific to the state of Mississippi. If you are a head of household, your income protections might differ from those of a single filer. Because these rules are technical, it is very important to hire an experienced attorney. We review your bank statements and pay stubs to make sure your math is correct before you file.
Taking the First Step Toward Relief
Regardless of which chapter you choose, filing for bankruptcy triggers an “automatic stay.” This is a powerful legal tool that stops lawsuits, garnishments, and those annoying collection calls. At Busching Bankruptcy Group, we offer virtual and free consultations to make this process as easy as possible. We guide you through the required credit counseling courses and represent you during the meeting of creditors.
You do not have to face financial hardship alone. Our team provides affordable representation and treats every client with empathy. If you are looking for a reliable bankruptcy law firm in Ocean Springs, MS, contact Busching Bankruptcy Group today. Let us help you hit the reset button and move toward a brighter financial future!
Contact Information:
Busching Bankruptcy Group
1117 Washington Ave,
Ocean Springs, MS 39564
United States
Contact Busching Bankruptcy Group
(228) 382-1963
https://buschingbankruptcy.com/
