Means Test
Florida Bankruptcy Means Test: Eligibility & Requirements
If a client’s household income is over the “median income”, as of 2005, U.S. Bankruptcy Code requires attorneys to screen potential candidates for Chapter 7 bankruptcy through the “means test”. This is a way to determine if a client has the actual ability to repay some of their debt. If debt liquidation through Chapter 7 is not an option because of income, the client and attorney can then explore debt reorganization through Chapter 13 bankruptcy.
Sun Coast Law, Orlando helps clients just like you every day and administers the means test frequently. You will learn immediately which option to consider after meeting with one of our professional bankruptcy means test attorneys. We will carefully examine all of your finances to determine which debt relief solution to pursue.
Steps to Determine Eligibility & Income limits for Bankruptcy
Step One: Your Income as Compared to the State Median A comparison is made between your household income and the median income of others (with the same size household) in your state.
According to the U.S. Department of Justice figures, (2011), the median adjusted income figures for the state of Florida are as follows: $40,029 for a household of one person $50,130 for a household of two people $54,594 for a household of three people $65,135 for a household of four or more people If your adjusted income does not fall below the median figure for the size of your household, you may still be eligible for Florida Chapter 7 bankruptcy by passing the means test.
Step Two: Expenses and Unsecured Debts Certain expenses may be deducted from your income that will lower your median household figure. This new amount will be compared to the unsecured debt you have, including medical bills and credit cards.
Step Three: Deductions from Gross Income The Internal Revenue Service allows for deductions from disposable income that could alter your means test, making you eligible for Florida Chapter 7 bankruptcy. While the list of specific deductions is extensive, it may include:
- Some medical and dental costs
- Union dues
- Employment uniforms
- Auto loan payments
- Spousal support and alimony ordered by the courts
Means Test
- Florida Bankruptcy Means Test: Eligibility and Requirements
- Steps To Determine Eligibility for Bankruptcy
Chapter 7 Bankruptcy
- Chapter 7 Bankruptcy
- Who Qualifies for Chapter 7 Bankruptcy?
- Debt to be Discharged
- My Assets and Chapter 7 Bankruptcy
- Additional Chapter 7 Benefits
Chapter 13 Bankruptcy
- Chapter 13 Bankruptcy Florida
- Is Filing for Chapter 13 Bankruptcy the Best Choice For You?
- Why File for Chapter 13 Bankruptcy?
- How Chapter 13 Works
- The Chapter 13 Process
- Meeting Chapter 13 Qualifications
- Discover the Benefits of the Chapter 13 Repayment Plan
- Benefits of Chapter 13
- Chapter 13 Bankruptcy Attorney
Chapter 7 vs Chapter 13
- Chapter 7 vs Chapter 13
- Chapter 7 Bankruptcy
- Will You Qualify for Chapter 7 Bankruptcy?
- Chapter 13 Bankruptcy
Chapter 13 Bankrutpcy Timeline
- Chapter 13 Bankrutpcy Timeline
- Chapter 13 Bankruptcy in Florida - What will happen?
- Chapter 13 Timeline
- Changes During the Three to Five-year Repayment Period
- What if I have filed for Chapter 13 bankruptcy before?
- Chapter 13 Bankruptcy Florida
- Is Filing for Chapter 13 Bankruptcy the Best Choice For You?
- Why File for Chapter 13 Bankruptcy?
- How Chapter 13 Works
- The Chapter 13 Process
- Meeting Chapter 13 Qualifications
- Discover the Benefits of the Chapter 13 Repayment Plan
- Benefits of Chapter 13
- Chapter 13 Bankruptcy Attorney
If you need to find a solution, contact a member of our team. SunCoast Law can help! We offer free initial consultations to all of our clients and would be happy to meet with you one-on-one.
