Mara Law, P.A.
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Mara Law, P.A.
Mara Law, P.A.

What is the Bankruptcy Means Test?

Fri, May 03, 2013 at 2:40PM

When considering bankruptcy, you encounter many different legal terms involved with the process. The “means test” is a very basic term, but a key factor in whether you decide to file for a Chapter 7 or Chapter 13 bankruptcy. A Volusia County bankruptcy attorney can explain this term in detail as well as many others used during bankruptcy, so you can understand the process and make informed decisions.


When your income is the same as or less than the monthly median income of your state’s residents, you are eligible to file for Chapter 7 bankruptcy. When your monthly income is higher than the median Florida resident’s income for a family of your size, you must perform calculations under the means test to determine Chapter 7 eligibility. Calculations are complicated. When determining your monthly income, there are numerous deductions you may be able to take listed in Section 707(b)(2) of the Bankruptcy Code. This Bankruptcy Code section fully describes the requirements for the means test calculations. For example, you can take deductions for certain living expenses, such as the following:

  • Food
  • Clothing
  • Housekeeping supplies
  • Personal care products
  • Necessary health insurance
  • Disability insurance
  • Reasonable and necessary support for elderly, chronically ill or disabled household member
  • Expenses for dependent children under age 18
  • Housing and utilities

An Ormond Beach bankruptcy attorney can review your income and help you perform the necessary calculations to find out whether Chapter 7 is an option. There are also many other factors to consider when deciding whether to file for bankruptcy.

Our attorneys at Mara & Mara have strong financial backgrounds ― a degree in finance and a master’s degree in business administration. Combined with our knowledge about bankruptcy, our financial and business knowledge helps us provide excellent legal assistance to clients struggling with debt.

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10.0Wendy Anne Mara

Mara Law, P.A. is located in Ormond Beach, FL and serves clients in and around Bunnell, New Smyrna Beach, De Leon Springs, Palm Coast, Daytona Beach, Flagler Beach, Barberville, Pierson, Seville, Port Orange, Flagler County and Volusia County.

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