TAMPA BANKRUPTCY ATTORNEY'S
Chapter 13 Bankruptcy Means Test or Test of Average Income:
.
A Chapter 13 Bankruptcy typically focuses on either secured assets or an income test known as the Means
Test. Under the Means Test the Debtor will typically pay their creditors the difference between their
income and their allowed expenses. A person with more income than expenses, or discretionary income,
may be required to file under Chapter 13 of the Bankruptcy Code, and may not be allowed to file under
Chapter 7.
The income threshold is based on average NET household income and changes regularly. The
latest amounts come in to effect on November 15, 2011 and for Florida they are:
Number of People in the home Allowed Net Income
1 $40,766
2 $49,729
3 $52,840
4 $62,742
Add $7,500 for each additional household member.
There are a number of deductions that may be available to reduce a household gross income
down to the NET used in Bankruptcy. These deductions may include, but are not limited to, an
automotive expense or car loan expense, a mortgage expense, Taxes, Health Care or Education
Expenses.
Each expense is controlled by a detailed rule and it is best to consult with a Tampa Bankruptcy
Attorney to properly determine your discretionary income or to calculate the means test.
Click Here to learn about a Personal Chapter 13 Bankruptcy
Chapter 13 Bankruptcy Means Test or Test of Average Income:
.
A Chapter 13 Bankruptcy typically focuses on either secured assets or an income test known as the Means
Test. Under the Means Test the Debtor will typically pay their creditors the difference between their
income and their allowed expenses. A person with more income than expenses, or discretionary income,
may be required to file under Chapter 13 of the Bankruptcy Code, and may not be allowed to file under
Chapter 7.
The income threshold is based on average NET household income and changes regularly. The
latest amounts come in to effect on November 15, 2011 and for Florida they are:
Number of People in the home Allowed Net Income
1 $40,766
2 $49,729
3 $52,840
4 $62,742
Add $7,500 for each additional household member.
There are a number of deductions that may be available to reduce a household gross income
down to the NET used in Bankruptcy. These deductions may include, but are not limited to, an
automotive expense or car loan expense, a mortgage expense, Taxes, Health Care or Education
Expenses.
Each expense is controlled by a detailed rule and it is best to consult with a Tampa Bankruptcy
Attorney to properly determine your discretionary income or to calculate the means test.
Click Here to learn about a Personal Chapter 13 Bankruptcy
Tampa's Best Bankruptcy Attorney: 1112 E. Kennedy Blvd. * Tampa, FL 33602 * T 813.222.8210 * F 813.222.8211
www.Galewski.com
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www.Galewski.com
www.GalewskiTitle.com
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Chapter 7
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Means Test: Tampa Bankruptcy Attorney 1112 E. Kennedy Blvd, Tampa Fl 33602, Galewski Law Group, P.A.
Bankruptcy Means Test. Bankruptcy Attorneys at the Galewski Law Group provides Chapter 7, Chapter 11 and Chapter 13 bankruptcy, foreclosure defense and loan modification representation
to clients throughout the Tampa Bay Area in cities that include Tampa, Clearwater, Tarpon Springs, St. Petersburg, Palm Harbor, Dunedin, Lutz, Holiday, Safety Harbor, Oldsmar, Sarasota, Crystal
Beach, Bradenton, Brandon, Plant City, Trinity, Lakeland, Spring Hill, New Port Richey, Port Richey, Largo, Seminole, Pinellas Park, Ozona and throughout Hillsborough County, Pinellas County,
Manatee County, Pasco County, Polk County, Sarasota County and Hardee County.
to clients throughout the Tampa Bay Area in cities that include Tampa, Clearwater, Tarpon Springs, St. Petersburg, Palm Harbor, Dunedin, Lutz, Holiday, Safety Harbor, Oldsmar, Sarasota, Crystal
Beach, Bradenton, Brandon, Plant City, Trinity, Lakeland, Spring Hill, New Port Richey, Port Richey, Largo, Seminole, Pinellas Park, Ozona and throughout Hillsborough County, Pinellas County,
Manatee County, Pasco County, Polk County, Sarasota County and Hardee County.
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