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What is the Means Test?

 Means Test

If your income is less than the "state median" household income, you do not need to worry about the means test. Florida's State median incomes are currently:

  • 1 Member Household - $45,703.00
  • 2 Member Household - $56,759.00
  • 3 Member Household - $61,600.00
  • 4 Member Household - $72.958.00
  • Add $8,400 for each individual in excess of 4

If your income is over this amount, you will have to take the means test to determine if you qualify for chapter 7. Means test Income is determined by averaging the preceding 6 months income, so timing can be important if income fluctuates. Means test income includes almost all of sources of income including, but not limited to:

  • wages
  • business income,
  • rental income,
  • interest and dividends,
  • pensions and retirements plans,
  • amounts regularly paid by others towards your household expenses
  • unemployment income.

The means test subtracts specific expenses from income to determine if the debtor has enough "disposable income" left over to pay unsecured debt. Most allowed exemptions are pre-determined based on IRS and other standards, however actual expenses are used in some instances. If the means test determines you do not qualify for chapter 7, it also will determine what your minimum monthly payment will be under a chapter 13 plan.

We can help you with the means test to determine if you qualify for chapter 7 or what your payments would be under a chapter 13. Our firm has many years of experience assisting clients in financial difficulties, and will do all we can to help you create a brighter financial future. Contact us today for your free phone or in office consultation.

Contact Us Today!

At David Holland Law we focus on Consumer Bankruptcy and Debt Defense. We proudly serve Manatee and Sarasota Counties. We offer free phone or in-office consultations in Bradenton, Sarasota, Lakewood Ranch and Port Charlotte. Contact us through the form on this page or call us at (941) 744-5450 to speak with an experienced bankruptcy and debt defense attorney today. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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