The Florida bankruptcy means test is what Eric Lanigan and Roddy Lanigan will use to determine whether your income is low enough for you to file Chapter 7 bankruptcy.In Florida it varies by county, by ZIP code and is designed to keep filers with higher incomes from filing for Chapter 7 bankruptcy. Higher income filers who cannot pass the means test may have to use Chapter 13 bankruptcy to repay a portion of the debts. This means you may not be able to use Chapter 7 bankruptcy to wipe out your debts.
Having to take a Chapter 7 means test doesn’t mean that you have to be broke in order file a Chapter 7 bankruptcy. It is possible that you can earn significant monthly income and still qualify for Chapter 7 bankruptcy if you have a lot of expenses, such as a high mortgage payment.
Can You Pass the Florida Bankruptcy Means Test?
The first step to taking the means test is knowing if your current monthly income is less than the median income for a household of your size in Florida. You can file for Chapter 7 if this is true. That’s it, you passed.
How Does the Chapter 7 Means Test Work?
The higher your disposable income, the more likely it is that you won’t be allowed to file a Chapter 7 bankruptcy. The means test was created to limit the use of Chapter 7 bankruptcy to those who truly cannot pay their debts. It does this by deducting specific monthly expenses from your current monthly income your average income over the six months before you file for bankruptcy to determine disposable income.
Only bankruptcy filers with primarily consumer debts, not business debts, need to take the means test. To take the means test, you must first determine whether your income is more or less than the median income in your state. If you earn more than the median, you must figure out whether you would have enough left over, after subtracting certain expenses, to repay some of your debt.
More Information on the Means Test
The median income helps determine eligibility for Chapter 7 bankruptcy, changed on March 15, 2011. Current median income figures can be found at: http://justice.gov/ust/eo/bapcpa/20110315/bci_data/median_income_table.htm.
How Can You Be Sure You Can to Repay Debts?
For those whose household income exceeds the state median, the means test computations get significantly more complex. You must determine whether you have enough income left over after paying your monthly expenses, to pay off some of your unsecured debts like medical or credit card bills.
If you fail the means test and cannot file for Chapter 7 bankruptcy there is a chance you may file Chapter 13 bankruptcy.
Median income levels vary by state and household size, and each county and metropolitan region has different allowed amounts for categories of expenses: basic needs, housing, transportation.
Use a Chapter 7 Means Test Online Calculator
Visit this website to find out if you can pass the Florida State Means Test http://legalconsumer.com/bankruptcy/bankruptcy-means-test
Once you enter your ZIP code, the calculator uses the income and expense standards for the Florida state, county, and region to determine your eligibility.
If You Pass the Chapter 7 Means Test
If you can qualify to file Chapter 7 consult with an attorney who you feel confident in and who has experience in filing multiple bankruptcies.
Bankruptcy law changes constantly and there are intricacies that an attorney who practices family law but who does not regularly file bankruptcy law will not have experience with. Working with an attorney like Eric Lanigan who has 35 years of experience in bankruptcy will put your mind at ease knowing that the situation is in good hands. Roddy Lanigan has four years of experience filing bankruptcies in Florida. The Lanigans will provide questions, you provide answers and together they will offer you choices for your specific financial and economic situation.
Deciding to file bankruptcy is a major life decision. It can be stressful or confusing. Work with experienced attorneys who will be frank with you about your bankruptcy choices.
If You Can’t Pass the Chapter 7 Means Test
If you can’t pass the means test you either have to wait to file when your income is lower or you cam file a Chapter 13 bankruptcy. A Chapter 13 bankruptcy means that you to make monthly payments over a three- to five-year plan that is created by your attorney.
A Chapter 13 bankruptcy is carefully monitored by the bankruptcy court. Most people want to file Chapter 7 which eliminates all debt.
But you can keep your home, your car and other items secured by Chapter 13 bankruptcy. A Chapter 13 bankruptcy can be right for you but to be certain, consult with Lanigan and Lanigan.
When you talk with Eric Lanigan and Roddy Lanigan you’ll share your debt, your creditors, your assets, savings, income the last six months and other pertinent information. Upon complete review, the Lanigans will ease your worries and talk with you about the best options to resolve your creditor issues and challenges no matter what the cause.