In order to qualify for Chapter 7 bankruptcy in Florida a debtor a debtor must pass the “means test” by one of two ways either fall under the median income for his or her family size in Florida or if the debtors income is greater than the median income the debtors expenses (mortgage, car, medical, child support, etc) are taken into consideration to determine whether or not the debtor has disposable income remaining.
Here are the current median income numbers for the state of Florida as of 11/1/2011:
|Family Size||Annual Gross Income||Monthly Gross Income|
Under the Median Income Chapter 7 Bankruptcy:
The fact that you may fall under the median income for the state of Florida DOES NOT guarantee that you will be able to file for Chapter 7 bankruptcy. The bankruptcy petition also requires the debtor to list their actual income and subtract them from their actual expenses. IF the debtor has a positive number i.e. disposable income after computing their actual income minus their actual expenses they will NOT be able to file for Chapter 7 Bankruptcy.
Under the Median Income Chapter 13 Bankruptcy:
If a debtor is thinking a filing for Chapter 13 bankruptcy and their income is under the median income for the state of Florida then their Chapter 13 bankruptcy repayment plan will only be for three years.
Over the Median Income Chapter 7 Bankruptcy:
If you are over the median income for the state of Florida and are considering filing for Chapter 7 bankruptcy then your attorney must compute the means test as well as your actual income minus your actual expenses in order to determine whether or not you qualify for Chapter 7 bankruptcy.
Over the Median Income Chapter 13 Bankruptcy
If you are over the median income for the state of Florida and are considering filing for Chapter 13 bankruptcy then your repayment plan will be for five years. The filing of a bankruptcy petition a complex and should never be undertaken alone or without the support of an experienced bankruptcy attorney. If you are thinking of filing for bankruptcy then please contact our office for a free consultation. Shmucher Law, PL, a bankruptcy law firm, represents debtors, creditors, and trustees in bankruptcy matters throughout Broward and Miami-Dade counties.