Ft. Lauderdale Bankruptcy Attorney

The Means Test: A Requirement in Filing Bankruptcy

Bankruptcy law has significantly changed over the last few years. These changes have led many individuals to believe the bankruptcy myth that the new laws disqualify most individuals from declaring bankruptcy. While the new laws make the bankruptcy process a little more structured, they by no means disqualify individuals in need from receiving the much-needed relief that comes with declaring bankruptcy. One of the most misunderstood aspects of the new bankruptcy law is that individuals must pass a means test to qualify for filing. At The McCue Law Firm, we have helped many individuals file for bankruptcy and we are immensely confident in our knowledge of bankruptcy law. A Ft. Lauderdale bankruptcy lawyer from our firm will be able to explain exactly if you will not qualify for bankruptcy due to failing a means test.

The means test was enacted to reserve bankruptcy aide for individuals who truly needed the assistance and stop individuals who are looking to take advantage of the bankruptcy system. A means test essentially measures your income against the median, or average, income in the state of Florida. If your income falls below the median income, you qualify for Chapter 7 bankruptcy. The means test takes a few factors into account when determining your eligibility. The number of individuals in your household has a strong bearing on your standing. If you have a relatively high income, yet you are supporting a big family, you may still fall below the median. For a single individual living in Florida, the monthly median income is somewhere around $3,397.

Get Help with the Means Test

We know that sometimes a means test does not accurately reflect your current economic difficulties. For one thing, means tests do not take into account most of your monthly expenses. Also you may be faced with a steady decline in income. A means test generally takes your average income over the last 6 months. If your income is on a steady decline, it may be beneficial to take you test at the beginning of the next month to give a more accurate representation of your dwindling income.

If you would like to know more about the means test or whether or not you qualify for bankruptcy, you should not hesitate to contact a Ft. Lauderdale bankruptcy attorney.