Understand the Florida Means Test
Even if your household income exceeds the median income as set forth above, you may still qualify for a chapter 7 bankruptcy under the second analysis called the means test. The means test is just a fancy way of describing a budget analysis. In other words, we do an in depth analysis of your budget which includes your actual income and certain expenses as allowed by the bankruptcy court. Certain income such as wages, pension and 1099 income is included in the analysis, while other income such as social security and child support payments are not. Also, certain actual expenses are included, such as your mortgage and car payments, but other expenses are limited by standardized amounts established by the federal government. In other words, we can only deduct standardized amounts for food, transportation, educational expenses, etc even though these deductions may be less than what you actually spend.
We Can Help You Take the Means Test
The means test is a complicated legal analysis and only a competent, experienced bankruptcy attorney should provide you with advice on how to calculate the means test. Failure to properly prepare the means test may result in your being disqualified from chapter 7.
Find Out More About the Bankruptcy Process
Contact our bankruptcy lawyers at the P.R. Smith Law Group to learn more about the means test in Florida. Schedule a free initial consultation at our Tampa office. Call us at 888-682-5251 or send us an e-mail to get started today.
