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Means Testing – Median Income for Florida Changing on November 1st


Median Income for Florida Changing on November 1st

In order to file for bankruptcy you must under go a “Means Test” analysis to determine if you qualify for filing a Chapter 7 Bankruptcy. The Means Test is a two part test, the first part of the test analyzes your income vs. the “Median Income” for the state you live in. For purposes of this blog post, I will be focusing on the State of Florida. If you are at or below the Median Income for a household/family size of “X” you pass the first part of the means test and do not have to under go further analysis under the second part of the Means Test. It is possible to fail the first part of the Means Test (Median Income) and still pass the second part of the means test and qualify to file for a Chapter 7 Bankruptcy. Discussions regarding the second part of the Means Test will be left to another day. We will keep our focus on Median Income.

The data used by the Department of Justice to determine the Median Income for Florida is obtained from the Census Bureau. This data is typically adjusted twice a year. The Median Income for Florida currently and up to October 31, 2015 is as follows:

 

FLORIDA

Household of one (1) 

$42,718

Household of two (2)

$52,421

Household of Three (3)

$57,977

Household of four (4)

$67,539

For each additional household/family member above four (4) an additional $8,100.00 is added to the Median Income. So for a household/family of six (6) the Median Income would be $75,639.00.

As of November 1, 2015 the Median Income for Florida will be:

 

FLORIDA

Household of one (1) 

$43,085

Household of two (2)

$53,590

Household of Three (3)

$57,012

Household of four (4)

$66,509

For each additional household/family member above four (4) an additional $8,100.00 is added to the Median Income. So for a household/family of six (6) the Median Income would be $74,609.00.

What does this mean for you?

For most people this change will not mean much, but for some folks it could mean the difference between qualifying for a Chapter 7 Bankruptcy and not qualifying for a Chapter 7 Bankruptcy. That is why it is important to know where you stand with the Means Test and which type of bankruptcy you qualify for. A Bankruptcy Attorney will help you perform the necessary analysis so that you can make an informed decision about when and if to file for bankruptcy. For more information on the Department of Justice Means Testing click here to go to Department of Justice website.

Are you considering filing for bankruptcy?

If you are considering filing for bankruptcy, it is important that you speak with a bankruptcy attorney who can help you evaluate your potential homestead exemption and issues that may impact your exemption status in bankruptcy. Every bankruptcy case is different, so what has worked for one debtor may not necessarily work for another. If you are in Miami-Dade County or Broward County, Florida, please feel free to contact us to set up a FREE consultation to discuss your specific situation.

This blog post is made available for educational and informational purposes only and to promote a general understanding of the law, and not to provide specific legal advice. Use of this blog does not create an attorney-client relationship. Reading this post is not a substitute for obtaining legal advice based on the unique facts of your situation from an attorney licensed to practice law in your state. No representation is made regarding the current state of the information contained in this post. Examples that may be provided in this post are merely for illustrative purposes; the results in your case may be different and no results are guaranteed.

Matthew Mazur, P.A. is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Copyright 2015 Matthew Mazur, P.A.

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