Do I Make Too Much Money To File Bankruptcy |

Florida Divorce by Attorney Mark A. Seff

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Florida Divorce handled by Attorney Mark A. Seff

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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