During these trying times, for many in our state, debts are piling up. These include medical debt, student loan debt, credit card debt, etc. Times are tough, and when times are tough, our financial lives usually suffer. This is when bankruptcy may become a viable option. Though, many worry about the upfront means test or that they will not qualify for bankruptcy in Miami, Florida.
Essentially, the means test is an accounting of all of your income and assets. The bankruptcy trustee then uses this full accounting to determine whether the bankruptcy filer is abusing the system. For example, for Chapter 7 bankruptcy (usually, the preferred method), the trustee uses the means test to see if you can afford to pay off your debts. If you have the means, you may be required to file a Chapter 13 bankruptcy.
The required forms
For a Chapter 7 bankruptcy, there are several initial forms you must file. The first form is Form B122A-1, the statement of your current monthly income. The next required form is Form B122A-1 Supp, the Statement of Exemption from Presumption of Abuse Under 707(b)(2). The final means test form is Form B122A-2, the Means Test Calculation form.
Filling out the forms
When you fill out these forms, you must accurately and honestly enter both your Miami, Florida, income and expenses, and then do the means test calculations on the form. You will have a lot of the required information, but other information will be needed from the Census Bureau and the Internal Revenue Service.
Help is available
You can get general assistance about bankruptcy and how to file through your local bankruptcy court. The bankruptcy court clerks are actually prohibited from giving you legal advice. However, they do not provide step-by-step instructions, which is why many elect to contact a local Miami, Florida, bankruptcy attorney.