Chapter13 Bankruptcy Means Test or Test of Average Income 813-222-8210
Tampa Bankruptcy Attorney
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. Basically, if the average family with your income would have extra money left over at the month than you should be in a Chapter 13 bankruptcy and pay the remaining money to the bankruptcy trustee for the benefit of your creditors.
Although this is based on averages, the Courts allow very generous deductions for specific family expenses, including a mortgage, car payments, education expense, tax debt, health care costs, and long term retirement contributions or loan repayment. Call the Galewski Law Group, P.A. today for a free consultation (813) 222-8210. The income threshold is based on average NET household income and changes regularly. The latest amounts Florida they are:
Add $7,500 for each additional household member. The means test average numbers will be updated again this week, and officially change on May 1, 2013. The new numbers will be higher meaning after the change more cases will fit into chapter 7, and payments in a chapter 13 bankruptcy will be lowers. Check back with us this week or call to discuss the new average income numbers for the bankruptcy means test. 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. Note that the Bankruptcy car expense is broken into two parts: there is a deduction for use and maintenance and one for the car loan. The car loan exemption is often very generous and it is a benefit in many bankruptcies to have a car loan. 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 Did you know: Tampa Bankruptcy Attorney Tampa Bankruptcy Lawyers at the Galewski Law Group have been involved in over 1,000 cases this last decade, but we take a personal approach to each case. When we work to help someone get out of debt or a family save their home or save themselves from the deficiency in a mortgage, we put our heart into making sure that your interest, your family, and your future are protected. We start with a discussion of your immediate needs, short and long term goals, which may include: avoiding a judgment or garnishment, fighting a foreclosure or a lien foreclosure from a Home Owners Association, of simply stopping creditors from calling. We move from there to a series of avenues to reach your goals, including: filing bankruptcy, filing an exemption to garnishment, assisting with all avenues of foreclosure defense, negotiating with the bank or their attorney to obtain a modification, short refinance or a short sale with deficiency forgiveness. To help obtain your goals, achieve a fresh start, rebuild your life and move your recovery, we reach beyond a typical law firm and have relationships with industry leaders,credit repair specialists, mortgage lenders, realtors, and investors, and simply good hearted people that are there for you and your family. At the end of the day, your home is more than your castle, your family needs to focus on recovery, and not on legal details. We can handle the details while you move your recovery along. There is no substitution for competent legal counsel. The decisions that you make now can have a long lasting impact on you and your family. I often say that everyone gets their day in court. There is rarely a second chance to come back and change things with the judge or in a settlement agreement. The same is true in cases where you cannot always anticipate future needs and where legal documents are drawn in the best interest of the bank and not you. You need someone familiar with these documents to help assure that your interest is protected and you are free from any future claim. This means that you should do things correct the first time. Just because a friend went through a similar situation, does not mean that they have had the same case or that they know your situation. There is just no substitute for hiring the right law firm the first time. Call the Galewski Law Group at 855-Stan-the-Man or 813-222-8210 now and get a free consultation.
The Galewski Law Group provides Accident, Insurance Claim, Injury, Chapter 7, Chapter 11 and Chapter 13 bankruptcy, foreclosure defense, mortgage modification, Divorce, and Personal Injury representation to clients throughout the Tampa Bay Area including Hillsborough, Pinellas, Manatee, Pasco, Polk, Sarasota and Hardee County and in cities that include Tampa, Clearwater, Dover, Seffner, Tarpon Springs, St. Petersburg, Palm Harbor, Dunedin, Safety Harbor, Lutz, Holiday,, Oldsmar, Sarasota, Crystal Beach, Bradenton, Lakeland, Brandon, Plant City, New Port Richey, Trinity, Spring Hill, Port Richey, Largo, Seminole, Pinellas Park, and Bartow. 412 E. Madison Street * Suite 1106 * Tampa, FL 33602 * T 813.222.8210 * F 813.222.8211