If you would like to file a Chapter 7 bankruptcy you must pass the Florida means test. The test only applies to higher income filers which means that if your income is below the Florida median for your household size you are exempt from the test and may file a Chapter 7.
You can take the Florida Means Test Here to See if You Qualify for a Chapter 7 Bankruptcy.
(Note this Means Test Calculator is set for Leon County, Florida, but it will work in for an Florida county).
If your income is higher than the Florida median you will need to complete the means test calculation to determine if you can pay back a portion of your unsecured debts through a Chapter 13 bankruptcy.
If your debts are not primarily consumer debts then you are exempt from the means test. You are also exempt from the means test if you are a disabled veteran and incurred your debt primarily during active duty or performing a homeland defense activity.
If your currently monthly household income is less than the Florida median income for a household of your size there is a presumption that you pass the means test and are eligible to file a Chapter 7 bankruptcy.
Your average household income is determined by averaging your monthly income over the last six calendar months. If you are over the median income limit and your income has declined over the last six months, then waiting one or more months might bring your income under the median level for Florida. Once you determine your average monthly income you multiply that by 12 to determine your annual income for the purpose of Florida median income test.
If your income declined suddenly within the past six months and has not yet increased, waiting until after the first of the month to file will lower your monthly income figure used for the means test. That is, even if you don’t qualify this month, you may qualify after the first of next month, or the month after that, if your income remains below the average monthly income for your state.
You may have noticed that changing the number of persons in the household dramatically affects the median income figure. You can’t include a roommate who is not your dependent in your household size, yet you may have to include the portion of their income that contributes to the overall income of the household.
You probably still qualify for Chapter 7, but you’ll need to answer more questions to find out. Most people qualify once all factors are taken into account.
The Means Test is the document used to determine if a debtor exceeds the Chapter 7 income limits. If you purchase our Bankruptcy Document Preparation Service we will calculate whether you satisfy the Means Test based on the information you provide when you complete our online forms..
Or you can use the calculator linked to in this article or calculate manually from the numbers below: :
|Household Size||Income Monthly|
|Household Size||Income Monthly||Fee Waiver Eligible (150%)|