' What Should I Know about the Florida Bankruptcy Means Test? - Law Offices of Robert M. Geller, P.A.
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

What Should I Know about the Florida Bankruptcy Means Test?

florida bankruptcy means testBeing in a situation where you are considering filing for bankruptcy can be stressful and overwhelming. If you are in Florida and thinking about filing, you may be wondering what is involved in the Florida bankruptcy means test.

The means test is a crucial element in determining whether an individual qualifies for Chapter 7 bankruptcy. Therefore, it is essential to understand what it entails and how it might affect your petition.

What’s the mean test and what do you need to know about it if you’re considering bankruptcy?

What is the Florida Bankruptcy Means Test?

The Florida bankruptcy means test is a calculation that measures an individual’s income against the median income level of the state. It is used in Chapter 7 bankruptcy cases and assists in determining if an individual is eligible to file.

Lawmakers introduced the means test as part of the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act in response to the concern about the increased incidence of bankruptcy fraud. The purpose was to limit Chapter 7 bankruptcy to those who cannot afford to pay their debts back under Chapter 13 bankruptcy.

How is the Means Test Calculated?

The means test is calculated by first filing out a comprehensive form that calculates your household income, allowed expenses, and disposable income. Then, the test determines whether your disposable income is above or below the state’s median income level.

If it is below the median, you will be eligible for Chapter 7 bankruptcy. However, if your disposable income is higher than the median, then you will need to determine whether you can afford to file for Chapter 13 bankruptcy.

What Happens If I Fail the Means Test?

If you fail the means test, you may not be eligible to file for Chapter 7 bankruptcy. However, that does not mean that you cannot file for bankruptcy at all.

You may still be eligible to file for Chapter 13 bankruptcy, which does not have the same income requirements as Chapter 7. Chapter 13 allows for a repayment plan that can be up to five years. It’s ideal for people with a stable income because they can afford to repay their debts over time.

Are There Any Exceptions to the Means Test?

Yes, some exceptions exist to the means test.

For example, disabled veterans who incurred most of their debt while actively serving in the military can be exempt from the means test. Also, if you are in debt primarily from operating a business, you may be exempt.

For more information on these exemptions, speak to a bankruptcy attorney.

The Florida bankruptcy means test is a crucial element in determining whether an individual qualifies for Chapter 7 bankruptcy. It allows you to better prepare yourself for the bankruptcy process.

For more information about debt or if you need help dealing with debt, contact the Law Offices of Robert M. Geller at 813-254-5696 to schedule a free consultation with an experienced attorney.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Does Bankruptcy Clear Attorney Debt?

Filing for bankruptcy is a complex process that often requires the expertise of a bankruptcy attorney to navigate successfully. However,...
Read More

What to Ask a Bankruptcy Attorney?

Deciding to file for bankruptcy is a significant and often emotional step, and having the right legal guidance is crucial...
Read More

How Can I File Bankruptcy with No Money?

Filing for bankruptcy is often seen as a last resort for those overwhelmed by debt. It's a step that provides...
Read More

What Does the Bankruptcy Trustee Investigate?

Filing for bankruptcy can be a daunting process, filled with complex legalities and numerous requirements. One key figure in this...
Read More

Can You Make Too Much Money to File for Bankruptcy?

When people think about bankruptcy, they often envision individuals who are completely destitute and unable to meet basic financial obligations....
Read More

Can You File Bankruptcy with Equity in Your Home?

For many individuals facing financial hardship, their home represents their most significant asset. However, when struggling with overwhelming debt, the...
Read More

Are Trusts Protected from Bankruptcy?

Trusts are powerful estate planning tools. They allow people to protect and distribute their assets according to their wishes. This...
Read More

The Truth About Bankruptcy and Buying a Car

The Truth About Bankruptcy and Buying a Car Bankruptcy often carries a stigma of financial ruin and a bleak future....
Read More

How Do Bankruptcy Lawyers Get Paid?

Bankruptcy can be a stressful and overwhelming experience, but having the right legal representation can make all the difference in...
Read More

Do You Lose Your Home When You File for Bankruptcy?

Filing for bankruptcy can be a daunting prospect, especially when it comes to concerns about losing one's home. Your home...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions