What Income Is Assessed By the Means Test?
When a person seeks to file for Chapter 7 bankruptcy protection, their financial circumstances must conform to the demands of the means test. This test measures a person’s monthly income and compares it to the average statewide income. If a bankruptcy filer’s situation meets this standard, the case may be allowed to proceed. However, if a debtor’s income is too great then a Chapter 7 filing may be disallowed. It is important to be aware of the various types of income that may be utilized to calculate one’s eligibility.
If you are struggling to keep pace with your financial obligations, it may be advisable to consult with a knowledgeable attorney about the possible benefits of a bankruptcy filing. Contact Florida bankruptcy lawyer Ryan J. Really, Attorney at Law, PLLC, at (239) 237-0675 to speak with a committed and capable legal advocate.
Means Test Income
A person considering filing for Chapter 7 bankruptcy needs to pass the means test. This test demands that their income falls below the income average for the state. However, a person’s overall monthly income is only measured through certain types of income. These include the following:
- Wages
- Tips
- Interest and dividends
- Unemployment benefits
- Workers’ compensation
- Annuity payments
Other forms of income may be included in this list. However, Social Security payments are not included.
Contact Us
Do not delay seeking legal counsel if you are living in a state of constant distress due to your debt situation. Contact Florida bankruptcy attorney Ryan J. Really, Attorney at Law, PLLC, by calling (239) 237-0675 today to learn more about your legal options in this challenging time.
