Florida Bankruptcy Means Test

Explaining the Bankruptcy Means Test

Recent changes to bankruptcy laws in Florida and the United States includes the requirement of proving eligibility through a means test, which is a formula that intends to determine whether an individual is eligible to file for chapter 7 bankruptcy. Through a special formula, the means test can determine whether an individual has sufficient income to repay debts to creditors. If the means test shows that the individual does not have sufficient income to repay the debt, then chapter 7 proceedings may continue. On the other hand, if the means test shows that there is sufficient income to repay the debt; chapter 13 bankruptcy may be a better option.

The means test takes into account the median income, and determines whether your household income is higher or lower than that amount for the six months previous to filing bankruptcy. Calculation of your six month household income is not restricted to your income alone, and will be comprised of all earnings from your entire household, as well as gifts and other factors, but excludes social security earnings. There are a variety of other necessary expenses which can be omitted from any earnings calculations such as child care, utilities, internet and phones, food, clothing and many others. It is critical to consult the expertise of a skilled Ft. Lauderdale bankruptcy lawyer in order to identify as many of these exemptions as possible and give yourself the best chance for scoring under the median income in the means test.

Means Test Assistance in Ft. Lauderdale

The means test can be a very involved and complicated process, as there are many different pieces of information that the test itself is comprised of. The Law Offices of Brown, Van Horn P.A. have over 40 years of combined experience in helping clients prepare for the means test, and can provide valuable guidance in terms of providing the right information. Our firm is dedicated to achieving your best possible solution and we will fight to see that you get it.

Contact a Ft. Lauderdale bankruptcy attorney to assist you with the means test and filing bankruptcy.