How Do You Qualify for Consumer Bankruptcy?
As we mentioned above, you likely qualify for either Chapter 7 or Chapter 13 bankruptcy, but not both. To determine your eligibility, you will need to evaluate your household’s current level of income, weighed against your qualifying expenses, through the state of Florida’s Means Test.
One easy way to determine whether you qualify for Chapter 7 or Chapter 13 bankruptcy is by checking your household’s income against the state of Florida’s current median incomes. If your income is equal to or lower than the median for your household size, you most likely qualify for Chapter 7 bankruptcy. If your income is greater than the median, the answer is less clear, and you will have to complete the full Florida Means Test.
The Means Test involves numerous formulas, but the thrust involves taking your current income and subtracting qualifying expenses that contribute to your cost of living – think rent, food, clothing, and the like. The resulting remainder is your “disposable income,” the amount of which will establish if you have enough to repay some of your debts through Chapter 13 bankruptcy.
Knowing what to deduct and what to exclude can often become confusing, and the Means Test is unfortunately not nearly as simple as subtracting expenses from income. An improper calculation of your disposable income can lead to a mistaken belief on which type of bankruptcy you qualify for, leading to valuable wasted time spent pursuing a filing that will not be accepted by the courts. Our Tampa bankruptcy attorneys are experienced in helping clients navigate the Means Test and determining their eligibility.
How The Cremeens Law Group Can Help
We at the Cremeens Law Group PLLC realize that going through bankruptcy is no one’s first choice, but the process can nonetheless be a lifesaver to those who find themselves overwhelmed by debt. Our Tampa bankruptcy lawyers can work to make bankruptcy as beneficial to you as possible and represent you every step of the way.Whether you need assistance determining your eligibility, filing your documents, preparing for liquidation or reorganization, or negotiating with the court, our legal team is equipped to help.