When filing for a Chapter 7 bankruptcy in Florida the first think that an attorney looks at is the debtors income. There are two ways to qualify for a Chapter 7, first the debtor must be under the median income (auto qualify), if the debtor is over the median income then the debtor must pass the means test. While the debtors income is a critical part in determining their qualification for Chapter 7 bankruptcy, there is no maximum income that the debtor can have to qualify.
Besides the debtor’s income, the means test considers other factors that enable parties to qualify for Chapter 7 bankruptcy. Debtors who have high income can qualify if they have any of the following:
- Large family size and or other dependents (parents / grandparents that they claim on their taxes)
- Large mortgage payments
- Large homeowner/condo association dues
- Car loans – two or more cars with payments or leased
- High health insurance payments
- High life insurance payments
- Child care payments
- Student tuition payments
- Large IRS debt with a prepaid payment plan.
If a high income debtor has more than a few of the factors above then the debtor will have a good chance of qualifying for Chapter 7 bankruptcy.
If you are thinking of filing for bankruptcy in Florida and would like to schedule a free consultation in Boca Raton, Fort Lauderdale, Miami, Plantation or Sunrise Florida then give our office a call at 954.309.5559 or 305.741.5553.