Bankruptcy FAQ

Back to the First Page About the Law Offices of Mark Seff Learn What You Can Do about Bankruptcy Description on What We Do with Family Law Directions on How to Get to Our Law Office Multiple Ways to Get in Touch with Us Back to the First Page About the Law Offices of Mark Seff Learn What You Can Do about Bankruptcy Description on What We Do with Family Law Directions on How to Get to Our Law Office Multiple Ways to Get in Touch with Us


Mark A. Seff
Attorney At Law
601 S. Federal Highway
Hollywood, FL 33020
PH: (954) 920-9220
Fax: (954) 929-2440

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Back to the First Page About the Law Offices of Mark Seff Learn What You Can Do about Bankruptcy Description on What We Do with Family Law Directions on How to Get to Our Law Office Multiple Ways to Get in Touch with Us

 


 Bankruptcy FAQ by the Law Offices of Mark Seff
Bankruptcy FAQ

Bankruptcy FAQ

13. I Heard That If You Are Making Too Much Money, You Can Not File For Bankruptcy?

According to the new bankruptcy law there is what is called a “means test” that is used to create a presumption whether the debtor may file a Chapter 7 bankruptcy. If the assisted person (consumer debtor under the new law) is below the medium income, there is no presumption of abuse. There is a presumption that the debtor can file a Chapter 7 bankruptcy. The vast majority of individuals who need to file for bankruptcy are under the medium income. Currently, the medium income figures range from $40,000.00 for a one person household to over $66,000.00 for a four person household. Just because the debtor is above the medium income it does not mean that a Chapter 7 Bankruptcy can not be filed. If the debtor is over the medium income, then the Means Test provides for deductions based on numerous categories, such as transportation expenses, food, secure debt, including mortgage payments, child support , alimony and health insurance, as examples. After the deductions have calculated, if that monthly income is under $110.00 per month, there is no presumption of abuse.





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