Income Excluded from the Means Test
When a debtor files for Chapter 7 bankruptcy, the individual needs to show that his or her current monthly income is lower than the state average. Known as the means test, this eligibility requirement can significantly impact a debtor’s Chapter 7 bankruptcy plans. However, not all income is calculated into this current monthly income figure. Some forms of income are withheld due to how or why they are received by the debtor.
If you’re thinking about filing for Chapter 7 bankruptcy, we can help you better understand the eligibility requirements for this type of bankruptcy. For more information regarding our services in planning and proceeding with a bankruptcy case, contact Florida Chapter 7 bankruptcy lawyer Ryan J. Really, Attorney at Law, PLLC, today at (239) 237-0675.
Exemptions for Current Monthly Income Figures
Most forms of income, including regular wages and income from retirement plans, are calculated into a current monthly income figure for a debtor considering Chapter 7 bankruptcy. However, the following forms of income are exempted from the means test:
- Income provided to war crime or crimes against humanity victims
- Income provided to victims of terrorism
- Income provided through the Social Security Act, including SSDI and SSI benefits
These types of income aren’t brought into the means test’s definition of current monthly income, meaning that they won’t affect a debtor’s eligibility for Chapter 7 bankruptcy proceedings.
Chapter 7 bankruptcy has several specific eligibility requirements that must be met before a debtor can proceed with bankruptcy. To learn more about these requirements and whether you can reasonably expect to meet them, contact Florida Chapter 7 bankruptcy attorney Ryan J. Really, Attorney at Law, PLLC, by calling (239) 237-0675 today.