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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:

Sun Coast Law will meet with you to discuss online Chapter 7 means test and eligibility and income limits for bankruptcy. To schedule an appointment with one of our bankruptcy means test lawyers, call (844) 330-2727. We offer comprehensive debt relief solutions in compliance with U.S Bankruptcy Code.
 
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Means Test

Chapter 7 Bankruptcy

Chapter 13 Bankruptcy

Chapter 7 vs Chapter 13

Chapter 13 Bankrutpcy Timeline

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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.

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