Your income determines which bankruptcy chapter you qualify for and how your case proceeds. Here are the current income thresholds for Miami and Florida filers.
The means test uses Florida median income to determine Chapter 7 eligibility. Current Florida figures:
These figures are updated periodically by the U.S. Census Bureau. Check the latest figures at justice.gov/ust/means-testing.
If your gross household income over the past 6 months (annualized) is below the Florida median, you pass the means test and qualify for Chapter 7. Key points:
If above median, you complete the full means test (Form 122A-2). Allowed deductions include housing, transportation, health care, childcare, taxes, and other IRS-allowed expenses. If your disposable income after deductions is low enough, you still qualify for Chapter 7.
If you do not pass the means test for Chapter 7, Chapter 13 is available regardless of income level. Your disposable income determines your plan payments. There is no income cap for Chapter 13, only a debt limit ($2,750,000).
The primary threshold is the Florida median income: $57,963 for one person. Below this, you qualify automatically. Above this, the full means test may still allow you to qualify after deductions.
No income cap for Chapter 13. However, there is a debt limit ($2,750,000 combined secured and unsecured). Your income determines your plan payment amount and length -- above median requires a 5-year plan.
All household income over the past 6 months, annualized. This includes wages, self-employment, tips, bonuses, pension, rental income, and contributions from household members. Social Security is excluded.
Yes. Since the means test uses a 6-month average, if you recently lost a job or had reduced income, waiting until the high-income months drop out of the 6-month window can help you qualify for Chapter 7.
Without state income tax, you have higher take-home pay, which means higher income on the means test. However, you also avoid the complexity of state tax deductions.
In Chapter 7, post-filing income changes do not affect your case. In Chapter 13, significant income changes may require a plan modification.