Florida Chapter 7 Means Test: Do You Qualify for Bankruptcy?
Most people who want to file Chapter 7 in Florida can qualify — but you have to pass a two-part test first. Here's exactly how the Florida Chapter 7 means test works, what the current income limits are, and what to do if you don't pass on the first try.
In This Guide
The Florida Chapter 7 means test is a federal formula that determines whether you can file for Chapter 7 bankruptcy. Congress introduced it in 2005 to make sure that debt relief goes to people who genuinely can't repay what they owe — not to people who have the financial capacity to do so through a repayment plan.
The good news: the test has two steps, and many Florida filers pass on Step 1 alone — meaning they never have to calculate disposable income at all. If your income is at or below Florida's median for your household size, you qualify and you're done.
This guide walks you through both steps, the current Chapter 7 income limits for Florida, what types of income count (and which don't), and what your options are if you don't pass on the first try.
What Is the Chapter 7 Means Test?
The means test was introduced by the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005. Before BAPCPA, any consumer could file Chapter 7 regardless of income. The means test added a gatekeeping step: if you can afford to repay a meaningful portion of your debts, you're directed toward Chapter 13 instead.
Step 1 — Income Comparison
Compare your Current Monthly Income (CMI) to Florida's median income for your household size. If your CMI is at or below the median, you pass automatically. Stop here — you qualify.
Step 2 — Disposable Income Calculation
Only required if you failed Step 1. You subtract allowed IRS expense standards and secured/priority debt payments from your CMI. If your remaining disposable income is low enough, you still qualify for Chapter 7.
How “Current Monthly Income” (CMI) is calculated:
- →Add up all income received in the 6 calendar months BEFORE the month you file
- →Divide by 6 to get your monthly average
- →Multiply by 12 to get your annualized figure for comparison
- →The 6-month period ends the day BEFORE the filing date — not the filing month itself
Step 1 — Florida Median Income Comparison
The first step is simple: look up Florida's median income for your household size and compare it to your CMI (annualized). If you're at or below the median, you automatically pass the means test and qualify for Chapter 7 — no further calculation needed.
The following figures are the current Florida median income figures for bankruptcy, updated May 2025 by the U.S. Trustee Program:
Household size beyond 6: Add $725/month ($8,700/year) for each additional person. Source: U.S. Trustee Program, updated May 2025.
What this means for you:
- ✓CMI at or BELOW the Florida median → You PASS Step 1 → You qualify for Chapter 7
- ✓CMI ABOVE the Florida median → You must complete Step 2 (disposable income calculation)
- ✓Passing Step 1 means you do not need to complete Form 22A-2 at all
Step 2 — Disposable Income Calculation
If your income is above the Florida median, you move to Step 2 — the full disposable income calculation. This is where many above-median filers still manage to qualify, because the allowed deductions are generous and Florida's IRS local standards reflect actual cost-of-living expenses.
Step 2 works by subtracting allowed expenses from your CMI. The allowed deductions fall into two categories:
IRS Standard Expense Deductions
National standards for food, clothing, and household supplies. IRS local standards for housing and utilities (Florida figures) and transportation (ownership costs + operating costs). Actual amounts for health insurance, childcare, education, and involuntary payroll deductions.
Debt Payment Deductions
Secured debt payments (mortgage, car loans) and priority debt payments (back taxes, domestic support obligations such as alimony and child support) are deducted from your CMI before arriving at disposable income.
Once your deductions are applied, you arrive at a monthly disposable income figure. Here's how to interpret the result:
Less than $139.58/month
You QUALIFY for Chapter 7
More than $234.58/month
You do NOT qualify — Chapter 13 applies instead
$139.58–$234.58/month (gray zone)
Multiply by 60. If result is less than $9,075 → you likely qualify
What Counts as Income for the Means Test?
Not all money you receive is counted the same way for the means test. Getting this right is critical — miscounting income is one of the most common errors that leads to unnecessary disqualification or, worse, a challenge from the trustee.
INCLUDED in CMI
- ✓Wages, salary, tips, commissions
- ✓Net business income
- ✓Rental income
- ✓Regular contributions from household members
- ✓Unemployment compensation (most circuits)
- ✓Pension and retirement distributions
- ✓Interest, dividends, royalties
NOT INCLUDED in CMI
- ✗Social Security benefits (all types)
- ✗Supplemental Security Income (SSI)
- ✗VA disability compensation
- ✗Certain child support received
- ✗Payments to crime victims
- ✗Payments to war crime victims
Note on unemployment compensation: There is a circuit split on whether unemployment benefits count as CMI. Most federal circuits, including the Eleventh Circuit (which covers Florida), include unemployment compensation in the CMI calculation. If unemployment makes a significant difference for you, consult a bankruptcy attorney.
What If You Don't Pass? Your Options
Failing the means test does not mean you're out of options. It means Chapter 7 isn't available to you right now — but there are several paths forward depending on your situation.
File Chapter 13 Instead
Chapter 13 allows above-median filers to reorganize their debts into a 3–5 year repayment plan. You keep your assets and get a structured path to discharge. Many people prefer Chapter 13 because it also protects co-signers and lets you catch up on mortgage arrears.
Wait and Re-File
If your income is temporarily elevated — a large bonus, seasonal work, or a second job you've since left — your 6-month average will reset over time. Waiting until the high-income months fall outside the look-back window can bring your CMI below the median.
Run the Full Step 2 Calculation
Above-median filers often qualify once deductions are properly applied. Don't assume you've failed until you complete the full disposable income calculation — the allowed expense deductions can be substantial.
Business Debt Exception
If more than 50% of your debts are non-consumer debts (business obligations, not personal expenses), the means test may not apply to you at all. Filers with primarily business debts can bypass the means test entirely.
Common Florida Means Test Mistakes
These are the five errors that show up most often when Florida filers complete the means test on their own. Each one can result in a trustee challenge or an unnecessary disqualification.
Using Net Instead of Gross Income
Current Monthly Income is calculated using gross income — before taxes and deductions. Using your take-home pay will understate your CMI and can create problems if the trustee audits your filing.
Forgetting Household Contributions
If a spouse, partner, or other household member regularly contributes money toward your household expenses, those contributions are included in your CMI — even if the money goes directly to paying bills you share.
Miscounting Household Size
Household size for the means test includes everyone who lives in your home — not just legal dependents. A roommate who contributes to rent, a parent, or an adult child all count toward household size, which affects which median income threshold applies to you.
Wrong 6-Month Look-Back Window
The look-back period ends the day BEFORE you file — not the end of the filing month. A common mistake is including income from the actual month of filing. Use the 6 full calendar months immediately before the filing month.
Not Excluding Social Security Income
Social Security benefits — including retirement, SSDI, and SSI — are excluded from CMI by federal statute. For many retirees and disabled filers, properly excluding SS income drops their CMI significantly below the median, making them an automatic qualifier.
Not Legal Advice
JustiPal™ is a document preparation platform, not a law firm. This article is for informational purposes only and does not constitute legal advice. Means test thresholds are updated periodically — verify current figures at the U.S. Trustee Program. Consult a licensed bankruptcy attorney for advice specific to your situation.
Ready to Organize Your Florida Bankruptcy Case?
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