The easiest explanation of what the Means Test is, is that it is a test that determines what type of bankruptcy a debtor can file, either Chapter 7 or Chapter 13. When filing for bankruptcy a debtor must understand that he or she may not be eligible to file any bankruptcy they choose. The means test limits the ability to file Chapter 7 for those individuals or businesses that need it most. The means test works by analyzing both your monthly income and your disposable income to determine bankruptcy eligibility.

Monthly Income
Your Monthly Income is a total of all your monthly incomes (gross wages, rental income, disability income, alimony, etc.) and that number is compared to the median income for the same family size for the state of Florida. If your monthly income is greater than the median income then you will need to determine your disposable income to determine chapter 7 eligibility. If your income is less than the median income then you may be able to file Chapter 7 bankruptcy.

Disposable Income
The disposable income is any income that you have remaining after paying your regular expenses. If you have disposable income remaining then you will NOT be eligible for Chapter 7 bankruptcy. If you do not have any disposable income remaining then you may be able to file for Chapter 7.

It is STRONGLY recommended that you seek the advice and representation of a qualified Miami Bankruptcy Attorney to determine your eligibility into filing for Bankruptcy. Ofer Shmucher of Shmucher Law, PL has assisted hundreds of individuals file for bankruptcy protection. Our office is able to see clients seven days a week and we offer free consultations and evening appointments. Feel free to call us at 954.309.559 or 305.741.5553.

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