Bankruptcy Means Test in Miami

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If you are considering filing Chapter 7 bankruptcy, you will first need to take the bankruptcy means test to determine if your income is low enough to qualify. With 25 years of experience, our Miami bankruptcy lawyer at Orshan, P.A. can help you determine your eligibility!

When searching for an attorney to handle your bankruptcy case, we believe it is important that you work with someone who has achieved notable accolades in the legal field. Attorney Orshan is selected for inclusion in Florida's Super Lawyers ®, he is AV® Rated by Martindale-Hubbell®, and he is Board Certified in Business Bankruptcy Law by the American Board of Certification, and that is only the tip of the iceberg with his qualifications!

Information on the Bankruptcy Means Test

The purpose of the bankruptcy "means" test is to determine whether or not your income is low enough for you to qualify for a Chapter 7 bankruptcy. If your income is too high, you can use the Chapter 13 bankruptcy to pay off a portion of your debts, but you cannot use the Chapter 7 to wipe out your debts entirely.

You do not have to be penniless to pass the bankruptcy means test. Debtors can earn a significant income and still qualify for a Chapter 7 assuming they have a lot of expenses, such as an expensive mortgage, auto loans, taxes, and other obligations.

Comparing Your Income to Florida's Median Income

Passing the means test will rely on the below factors:

  • If your current income is less than the median income for a household of your size in Florida, you automatically pass, and you can file for a Chapter 7.
  • If your household income exceeds Florida's median, then we will have to determine if you have enough disposable income after paying your allowed monthly expenses to pay at least a portion of your unsecured debts such as credit cards. If your disposable income exceeds a certain amount, then you cannot file a Chapter 7 and will have to file a Chapter 13 instead.

Median income levels vary from state to state and household size, and each county and metropolitan area has different allowable amounts set for basic necessities such as housing, and transportation.

Don't worry about this formula being complex, we do this every day and it won't be difficult for us to determine your eligibility under a Chapter 7 bankruptcy.

Contact a Our Firm Today to Get Started

If you are considering filing for bankruptcy, do not hesitate to contact a Miami bankruptcy lawyer from Orshan, P.A. We gladly offer free case evaluations to all prospective clients, this way you can get all of your questions answered without any financial obligation on your part.

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