The first threshold qualification for Chapter 7 Involves calculation of the "Means Test" which compares your gross monthly income to the average gross monthly income based on your state and family size. The Means Test is a way to calculate if a person has sufficient monthly income (or the "means") to fund a Chapter 13 plan, rather than file for Chapter 7 Straight Bankruptcy.

How to calculate average monthly gross income: When calculating your gross monthly income, you must include only the previous six months of gross income. Gross income is your income before taking out any taxes or other deductions. If your gross income varies during the previous six months, add all gross income for the last six months and divide by six to get your average gross monthly income.

* If you are married, but only one spouse intends to file bankruptcy, you must also include your spouse's income in the calculation of monthly gross income. There is a "marital adjustment" to deduct your non-filing spouse's separate expenses, but you should consult a bankruptcy attorney.

The Means Test (for Florida Residents): If you have not filed for bankruptcy in the last 8 years; have lived in Florida for at least 2 years; and your gross monthly income is less than the following monthly amounts (based on your same family size), you can qualify for Chapter 7 under the Means Test:

Florida Median Gross Income (per family size) monthly / annual

• Family Size (1 Person): = $3,335.75 / $40,029
• Family Size (2 Persons): = $4,177.50 / $50,130
• Family Size (3 Persons): = $4,549.50 / $54,594
• Family Size (4 Persons): = $5,427.92 / $65,135
• Add $625.00 per month for each additional family member over 4 persons.

*IMPORTANT NOTE* If your gross income is greater than the above you can still qualify for Chapter 7. Approximately 40% of our Chapter 7 clients have gross income greater than the median income numbers above. In such cases, we must complete the second part of the Means Test. This means we are allowed to take certain expense deductions to determine your "NET MONTHLY INCOME" after expenses and allowed deductions. The net monthly income is then subject to further analysis to determine if Chapter 7 is an available option.

** In addition to the Mean Test, there are additional requirements to be reviewed in each particular case including a review of a personal budget/expenses, income from other persons/sources, types and value of your assets and property, and the types of debt.

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