The Bankruptcy Means Test
Ask a St. Petersburg Bankruptcy Lawyer For Assistance
For a person to
file for bankruptcy under
Chapter 7 of the U.S. Bankruptcy Code, he or she must first pass the means test.
This is a test that evaluates the debtor's income to determine whether
he or she has enough money to make payments with a
Chapter 13 repayment plan.
Passing the Means Test
There are two main steps to passing the means test. First, the debtor must
make less than the median income for the state. The Florida median income
will be determined based upon the average income for households of the
same or similar size, obtained from reports generated by the U.S. Census
Bureau. If the debtor passes this part of the means test, he or she can
move on to file for bankruptcy. If the debtor makes more than the median
income, he or she will proceed to the second part of the test.
The second part of the Chapter 7 means tests involves the evaluation of
the debtor's income in relation to necessary expenses, therefore establishing
the debtor's net monthly income. It taking the means test, making
sure your income and expenses are properly reported is essential. Depending
on your income and expenses, you may or may not have the opportunity of
passing the means test to file a Chapter 7 bankruptcy. Those that are
not eligible under Chapter 7 may still be able to file for other forms
By talking to a
St. Petersburg bankruptcy lawyer about your options in this regard, you can find out whether you may pass
the test and can also find out more about the particular advantages associated
with Chapter 7 bankruptcy as opposed to Chapter 13 bankruptcy. With a
thorough review of your case, you may even find that Chapter 7 is not
the right option for you, or that you may be able to pass the means tests
even when you thought this was not possible.