If you live in Florida and plan to file for Chapter 13 bankruptcy, you’ll need to go through the means test. The test doesn’t decide whether you are eligible to file, but it plays an important part in outlining how your repayment plan will work.
The test figures out your disposable income—the money left over each month after you pay your necessary living expenses. This figure helps the court determine the amount you can reasonably repay to creditors over time.
How the test works
The means test measures your household income against Florida’s average income level for families of the same size.
If your income is below the state median, the process is more straightforward and your repayment plan usually lasts three years.
If your income is above the median, you must complete a more detailed calculation. The court reviews your income and subtracts your allowed living costs for housing, food and transportation. These expenses follow national and local standards. The money left over becomes your disposable income, and your plan will usually run for five years.
Why it matters
Getting the means test right matters because it directly affects how long your repayment plan lasts and how much you pay each month.
Even small mistakes in reporting income or expenses can delay or derail your case. Work closely with a bankruptcy professional to make sure your paperwork meets Florida’s rules and gives you the best chance at a successful fresh start.
