Qualifying for Bankruptcy in Jacksonville
How do you know if you are qualified?
This is the first question that must be answered when a person is considering bankruptcy. There are alternatives to bankruptcy that can often work if a person acts soon enough once they start falling behind on mortgages, credit cards and loans. In 2005 Bankruptcy laws were amended to require the application of a "means test" to determine whether individual consumer debtors qualify for relief under Chapter 7. The best way to take this test is with the help of a Jacksonville bankruptcy attorney.
Means Test
The means test is one of the first things that any attorney needs to know how to prepare in order to file a consumer bankruptcy case. The results will tell you whether you qualify to file a Chapter 7, or what your monthly payments would be if you were to file a Chapter 13.
It's a two part test. First is the determination of whether or not you are under "median income". If you are above "median income" for your state, then the second part of the means test is completed. This is a calculation starting with your income (and all income contributed to the household for the last six (6) months prior to fili ng the bankruptcy petition) minus your normal living expenses. It sounds easy, but that can be deceiving.
The means test can be as simple as completing a comparison between your annual gross income and the "median income" allowable in Florida; or, it can be as complicated as a corporate tax return. As of November 1, 2010 the new median family income figures from Florida based on family size are:
- 2 person families $49,729
- 3 person families $52,840
- 4 person families $62,742
- 5 person families $70,242
- 6 person families $77,742
Bankruptcy can be complex and many cases are routine but it takes a skilled bankruptcy attorney to guide you through the process.
Contact a Jacksonville bankruptcy attorney at our offices today to find out if you qualify for bankruptcy.