Chapter 7 Means Test in Brevard County
Find Out if You Qualify from our Brevard County Bankruptcy Lawyers
Chapter 7 bankruptcy can allow you to finally obtain financial freedom
by discharging most, if not all, of your unwanted debts. While there are
many serious considerations that need to be examined when contemplating
filing a Chapter 7 bankruptcy, this option can give you the fresh-start
that is desperately needed. A Chapter 7 bankruptcy could help you get
on the right track to restoring your financial standing and rebuilding
your future. However, not everybody is eligible to file for Chapter 7
bankruptcy, and those who wish to file for it must pass what is known
as the “means test.” This is a complex system of determining
whether your income is to high to be eligible to file for a Chapter 7
bankruptcy. In instances where your income is too high to qualify for
a Chapter 7 bankruptcy, a Chapter 13 bankruptcy may be a possible solution
The Chapter 7 Means Test
The means test was developed to prevent abuse and overuse of Chapter 7
bankruptcy by those who simply looked to avoid paying off their debts.
The Chapter 7 means test only applies to consumer debt, so if you are
filing bankruptcy for non-consumer debt the means test does not apply.
The means test is comprised of two questions.
Is your income more than the median?
This is the easier of the two questions. Look at your family’s current
monthly income and compare it to the median income for a household of
your size in Florida. If your family’s income is below this level,
you automatically pass and are eligible to file for Chapter 7 bankruptcy.
If your income is higher, then you must ask the second question.
Do you have enough disposable income to repay some debts?
If you do earn above the state’s median income level, you have to
determine whether you have enough income left over after your “allowed”
monthly expenses to pay off a portion of your unsecured debts. If your
“disposable income” (the money left over after your allowed
expenses) is higher than a certain amount compared to your allowed expenses,
then you fail the means test and cannot file for Chapter 7. The easiest
way to determine whether or not you pass the means test is to use an online
calculator, such as the one found at
Legal Consumer. There are many factors that can effect whether you can pass the means
test, so it is highly advised to speak with a Brevard County bankruptcy
attorney about your particular situation.
If You Don’t Pass the Means Test
If you do not pass the means test, you cannot file for Chapter 7 bankruptcy.
However, this does not mean you are left without options. You can still
file Chapter 13 bankruptcy, which gives you the ability to restructure
your debts and develop a plan to pay them off at a fraction of what is owed.
You also have other non-bankruptcy alternative options that may be better-suited
to your needs, such as debt settlement or negotiation. You may also benefit
greatly from a credit counseling service, who can help you develop a plan
to obtain financial freedom on your own without the negative consequences
of declaring bankruptcy.
If you do wish to declare Chapter 7 bankruptcy, you should do so with the
assistance of a Brevard County bankruptcy lawyer. At the Buchalter Law
Group, we are motivated by your success, and we strive to help each of
our clients obtain the financial freedom they are seeking through whatever
means are most beneficial to them. Whether you need assistance with Chapter
7, Chapter 13, debt negotiation, or any other facet of debt resolution,
you can trust that our team will handle your case with the utmost professionalism
and dedication to your best possible outcome.
Get help with Chapter 7 bankruptcy today! Call Buchalter Law Group at (321)
320-6088 to schedule a
free case evaluation.